The United States is preparing what Treasury Secretary Scott Bessent has described as an “economic D-Day” against Iran, signalling a major escalation in Washington's financial pressure campaign against Tehran. Bessent said the Donald Trump administration was preparing to use broad economic and enforcement powers to sever the financial channels that support Iran's government, following what Washington describes as extensive damage to the country's military and nuclear capabilities.

In remarks announcing the planned offensive, Bessent said the administration had created the conditions to deploy “every agency, every authority and action” that had previously been considered difficult to use. He described the next phase as an effort to financially isolate the Islamic Republic and warned governments, companies and other entities considering continued economic engagement with Iran that the US approach to enforcement had changed. Bessent also accused Tehran of using security guarantees as a form of “extortion” and argued that the costs for those challenging US policy would now be substantially higher. The Treasury secretary did not provide a detailed list of the measures that would form the offensive, leaving the exact scope and timing of the proposed action unclear.

Pressure on Iran intensifies

The announcement comes amid heightened tensions between Washington and Tehran over Iran's military and nuclear programmes. Bessent claimed that the Trump administration had dismantled much of Iran's military capability, including nearly all of its military factories, and said the country's nuclear programme had been effectively “buried”. These are US government claims, rather than independently established assessments in the supplied material, and the extent of the reported damage remains a matter of international scrutiny.

The Treasury Department is expected to have a central role if Washington expands the campaign, given its authority over financial sanctions and enforcement against individuals, companies, banks and networks accused of supporting sanctioned Iranian activities. A broader campaign could focus on Iran's revenue sources, international financial connections and mechanisms used to move money across borders. The stated objective is to make it significantly harder for Tehran to access or transfer funds through the international financial system.

Global businesses face pressure

Bessent's warning also extends beyond Iran itself. His comments suggest that foreign governments and businesses maintaining economic ties with Tehran could face greater scrutiny or enforcement risks as Washington seeks to tighten the sanctions regime. The approach could place additional pressure on countries that continue trading with Iran, particularly those involved in transactions connected to Iranian energy revenues or financial institutions.

Iran has previously described US sanctions as “economic terrorism” and rejected Washington's pressure campaign. The latest US announcement could therefore further intensify the confrontation between the two countries, while also creating complications for international businesses seeking to maintain commercial relationships with Tehran.

For now, the administration has not publicly detailed the full package of measures covered by Bessent's “economic D-Day” warning. The next steps by the US Treasury and other federal agencies will determine whether the announcement translates into a significantly expanded sanctions and enforcement campaign. Any new restrictions could have wider consequences for Iran's access to foreign currency, international banking and oil-related revenues, while potentially affecting countries and companies that continue to engage with the Iranian economy.

The funeral of Iran's former Supreme Leader Ali Khamenei began in the holy city of Mashhad on Thursday, drawing thousands of mourners amid an intensifying military confrontation between Iran and the United States. Khamenei is expected to be buried near the revered Imam Reza Shrine following funeral prayers and a procession.

The funeral is taking place as the conflict between Washington and Tehran continues to escalate. Iranian authorities claimed they launched missile and drone attacks on US-linked military facilities across the Gulf, while the United States carried out a second consecutive day of large-scale airstrikes targeting Iranian military infrastructure.

According to Iran's military, its latest operation targeted a Patriot missile defence system in Kuwait, an early warning satellite antenna in Qatar, and fuel storage facilities used by the US military in Bahrain. Officials said a large number of drones were deployed during the coordinated attacks.

US Conducts Fresh Airstrikes

The US Central Command (CENTCOM) said American forces struck around 90 Iranian military targets, including air defence systems, missile and drone storage facilities, surveillance installations, naval assets and logistics infrastructure. The operation followed an earlier wave of strikes on more than 80 Iranian military sites.

Iranian authorities reported that recent US strikes killed at least three people in Ahvaz, while another attack on the coastal city of Sirik reportedly claimed three lives and left 15 others injured. Tehran also accused Washington of targeting railway bridges and civilian infrastructure, calling the attacks a violation of international law and a "war crime."

Iran Responds Across the Gulf

Iran's Islamic Revolutionary Guard Corps (IRGC) claimed responsibility for missile and drone attacks on dozens of US-linked military installations in Bahrain and Kuwait. Jordan confirmed that Iranian missiles entered its airspace before being intercepted, triggering air raid sirens across several regions. The US Embassy in Jordan advised American citizens to seek immediate shelter amid the developing threat.

Kuwait's Defence Ministry said its air defence systems intercepted three ballistic missiles, one cruise missile and ten drones. Debris from the interceptions reportedly injured one civilian, who remains in stable condition.

Fresh explosions were also reported in Bandar Abbas and Bushehr, although Iranian officials denied reports that the Bushehr nuclear power plant or Kharg Island had been directly targeted.

Trump Says Trust with Iran Is Gone

US President Donald Trump said Iran was interested in reaching a diplomatic agreement but insisted he no longer trusted Tehran to honour any future commitments. Trump also declared that the previous ceasefire understanding between the two countries had effectively ended following Iranian attacks on commercial shipping in the Strait of Hormuz.

Meanwhile, Iranian President Masoud Pezeshkian rejected calls to respond to Trump's remarks with similar rhetoric, saying Iran would continue defending its national interests without resorting to personal insults.

Maritime Security Concerns Rise

The conflict has further disrupted maritime traffic in the Strait of Hormuz. According to international reports, nearly 6,000 seafarers remain stranded in and around the strategic waterway as security risks continue to grow.

An Indian-flagged crude oil tanker carrying approximately two million barrels of Kuwaiti oil reportedly reversed course near the Strait amid heightened tensions, highlighting growing concerns over the safety of global energy shipments.

Security Tightened for Funeral

Security has been significantly strengthened across Mashhad ahead of Khamenei's burial. Large crowds carrying red flags symbolising revenge gathered near the Imam Reza Shrine as funeral processions commenced.

Iranian media reported that Khamenei's body was flown from Iraq after funeral ceremonies in the holy cities of Najaf and Karbala before arriving in Mashhad for the final rites. Speculation continues over whether Iran's new Supreme Leader, Mojtaba Khamenei, will make his first public appearance during the private burial ceremony.

The rapidly escalating military exchanges have intensified fears of a wider regional conflict, with diplomatic efforts appearing increasingly uncertain as both Washington and Tehran continue to exchange military strikes.