Trump Warns Economic Warfare For Aiding Iran, Federal Debt Grows, Venezuela Oil Deals

Up First from NPR - NPR

This episode of Up First covers three major topics: President Trump's threat of economic warfare against countries aiding Iran, the U.S. fed

Key takeaways

• The U.S. federal debt has surpassed $40 trillion, with interest payments now exceeding national defense spending.
• Trump's shift from military threats to economic sanctions against Iran is intensifying regional tensions, particularly with Gulf allies like Oman and the UAE.

Main topics

• Trump's economic warfare strategy against Iran
• U.S. federal debt surpassing $40 trillion

Notable quotes

We are now spending more on interest than we spend on national defense.

The $40 trillion itself is just a number, but you have to think about the impact that that will have on the interest payments.

Conclusion

As U.S. economic pressures escalate abroad and domestic debt reaches historic levels, the consequences ripple

Transcript preview

Speaker 3 (0:02) President Trump is threatening economic warfare on any country that helps Iran. He wants allies to add pressure on Iran to end the stalemate in the Strait of Hormuz, but those allies live next door and are stuck with the fallout. I'm Leila Speaker 7 (0:14) Fadil, that's Sasha Pfeiffer, and this is Up First from NPR News. Speaker 7 (0:20) The U.S. national debt has topped $40 trillion. You Speaker 8 (0:24) have to think about the impact that that will have on the interest payments. We are now spending more on interest Speaker 7 (0:30) than we spend on national defense. Experts say that higher debt is pushing up the cost of everything from mortgages to small business loans. Speaker 3 (0:37) And U.S. oil companies are making new deals in Venezuela. That comes eight months after U.S. forces captured Nicolas Maduro. Venezuela's politics and its future remain uncertain. Stay with us. We'll give you the news you need to start your day. Speaker 1 (0:55) This message comes from WISE, the smart way to manage your money around the world. With WISE, you can send, spend, and receive money in over 40 currencies at the mid-market rate. Learn more at WISE.com. T's and C's apply. Speaker 8 (1:10) It's hard to refine your taste when everything in your algorithm is vying for your attention. Is that influencer you follow giving you the right advice? What should we actually be paying attention to in our social media feeds? This week on It's Been a Minute, culture critic and host of the new podcast, Feedback, Ira Madison III, takes our hand and shows us the way. Watch the full It's Been a Minute episode on YouTube or listen in the NPR app or wherever you get your podcasts. Speaker 2 (1:34) At NPR, there's a little something for everyone. If you need advice for that big life change, try listening to Life Kit. If you want to know more about that new TV show, check out Pop Culture Happy Hour. And if you want to dive deeper into your favorite podcasts and enjoy perks like bonus episodes, archive access, and more, check out NPR+. Find out more and support the shows you love at plus.npr.org. Speaker 3 (1:58) The war with Iran is in its sixth month and oil is still struggling to move through the Strait of Hormuz. President Speaker 7 (2:04) Trump's tried bombing Iran into submission. Now he's pivoting to economic warfare. In a lengthy post, he announced in all caps, quote, the most crushing economic operation ever taken against any country. And he called on allies to stand with the U.S. to unleash economic D-Day. Speaker 3 (2:22) as he called it, on Iran. With us to talk about this is NPR international correspondent, Aya Batraoui. Good morning, Aya. Good morning. So this crushing economic operation that Trump posted about, do we know what this would look like? Speaker 2 (2:35) I mean, more of the same sanctions, the existing blockade, and even more pressure now. He's calling on allies around the world, countries around to join him in this isolation of Iran. And we've seen maximum economic pressure before by President Trump. You'll recall this was his policy the first time he was in office. But this is a step beyond because now there is that naval blockade in place. And it is blocking Iran from being able to export its oil. And this pivot from bombings to blockade comes as AAA says gas prices in the U.S. are up. 30 % on average from a year ago. So in many states, people are paying a dollar or more per gallon than they were. Diesel for trucks and jet fuel for flying are even higher. Now, that is because of Iran's chokehold on the Strait of Hormuz since the beginning of this war. Windward Maritime Intelligence Tracking says 5 million barrels of oil a day did exit the strait on average per day in July, but that is a fraction of the 20 million barrels that were going through before the war. And all Speaker 3 (3:32) that oil that had been pouring through was coming from Gulf Arab allies who depended on it for revenue, for their economies. Yet they are now stuck with this stalemate and its consequences. So what's the regional view on this? Speaker 2 (3:43) Right. So the Iranian and Gulf oil is