US President Donald Trump announced on January 12 that a 25% tariff will be imposed immediately on all countries conducting business with Iran, according to a post on his Truth Social platform.

His latest economic targeting comes as the White House weighs diplomatic and military options in response to the Islamic regime’s handling of the escalating protests in the Islamic Republic.

"The decision is final and will take effect immediately," Trump confirmed in a public statement. White House spokeswoman Caroline Levitt confirmed that while Trump is prepared to use military force against Iran, he prefers finding a diplomatic solution.

American officials told the Wall Street Journal that Trump is leaning towards approving military strikes on Iran, with Levitt stating that airstrikes are among multiple options under consideration. A senior US official told Al Jazeera that planning for possible strikes has reached advanced stages, with discussions scheduled for January 13 on potential response methods.

Several administration officials, led by Vice President JD Vance, are attempting to convince Trump to exhaust diplomatic channels before approving military action. Iranian Foreign Minister Abbas Araqchi responded on January 12 by declaring Iran’s readiness for "serious and real negotiations" whilst stating that Tehran is prepared for war.

The developments come amid widespread protests in Iran, with death toll estimates varying significantly. A Norwegian-based Iranian human rights organisation reported 648 deaths since protests began approximately two weeks ago, including security force members, with around 10,600 arrests.

The US-based Human Rights Activists News Agency reported 572 deaths and 600 protests across all 31 Iranian provinces, while Iran International suggested the figure could reach 12,000 dead.

Iranian state television broadcast footage of tens of thousands of regime supporters participating in marches supporting the Islamic Republic. Parliament Speaker Mohammad Bagher Ghalibaf accused the US and Israel of responsibility for Iran's economic crisis and protests, stating,

"We are fighting on four fronts - economic war, psychological war, military war against the US and Israel and today - also war against terrorism."

Video footage circulated on January 11 confirmed large numbers of bodies at Kahrizak Forensic Medicine Centre in the south of Tehran, with grieving families searching to identify relatives amongst the dead.

“It's a poke in the eye to China, Azerbaijan, Iraq, UAE, Oman, and other trade partners with Iran,” IntelliNews Editor-in-Chief Ben Aris noted, with the effect on such countries’ relations with the US still unclear.