US President Donald Trump has sparked controversy after appearing to suggest that Iran attacking major US cities could be considered an acceptable cost of maintaining national and global security.
Speaking at a campaign rally in Grand Island, Nebraska, Trump was discussing rising prices linked to the ongoing Iran war when he referred to the possibility of an Iranian attack on an American city. He specifically mentioned Los Angeles and San Diego, saying the potential loss would represent a small price to pay.
Trump argued that the economic impact of the conflict was temporary and predicted that prices would eventually fall sharply. He also claimed that the war was close to ending, while acknowledging that the fighting could continue for some time.
The remarks drew a strong response from California Governor Gavin Newsom, who criticised the president and described his comments as dangerous. Newsom also accused Trump of escalating tensions with California while referring to the deployment of National Guard troops and Marines in the state.
Trump said Iran was capable of enduring significant economic pressure and suggested that Tehran’s ability to withstand sanctions would eventually be tested. He maintained that the conflict would end soon, regardless of how the outcome was reached.
Meanwhile, Washington has increased pressure on international financial institutions dealing with Iran.
The US Treasury Department warned foreign banks and financial institutions that continue transactions with sanctioned Iranian entities that they could face sanctions without prior notice.
The department urged foreign institutions to immediately end business relationships and transactions involving sanctioned Iranian financial institutions. It warned that banks providing financial services to Iranian institutions could be targeted if they help Tehran access the international financial system.
Foreign institutions could also face restrictions on their access to the US financial system, including limits on correspondent and payable-through accounts.
Washington has been tightening economic pressure on Iran since the conflict began on February 28, when the US and Israel launched attacks on Iranian targets and Tehran retaliated with strikes against Israel and Gulf states hosting US military facilities.
Iran was already under extensive US sanctions before the war. American officials have increasingly warned foreign governments and businesses that continued commercial ties with Tehran could expose them to sanctions and limit their access to the dollar-based financial system.
