ASIa Pacific News Agency Report: US President Donald Trump is readjusting his strategy to tackle the Iran conflict. US officials stated that Trump currently leans toward the path of "economic pressure", forcing the Iranian government to make concessions by tightening financial sanctions and curbing Iran's energy exports.
US officials revealed that Trump is in no hurry to launch large-scale military operations again and remains cautious about diplomatic negotiations. Therefore, he has adopted a wait-and-see approach, allowing existing sanctions and the US maritime blockade on Iranian ports more time to further cripple Iran's economy. #IranCrisisUpdate#
A senior US administration official said Trump's advisors presented him with the severe damage inflicted on Iran's economy by ongoing sanctions, arguing that further ratcheting up sanctions and rolling out new economic restrictions would be the most effective way to compel the Iranian government to back down.
Trump has apparently settled on this plan and told aides he does not want to order another military strike.
Trump told reporters on Monday: "They have no money. Iran is bankrupt, totally bankrupt."
Economic Pressure Takes Center Stage in US-Iran Rivalry
Esmail Baghaei, Spokesperson of Iran's Ministry of Foreign Affairs, said the US economic coercion strategy will not work, reflecting Washington's lack of effective diplomatic tools. He warned that the US’s overreliance on such tactics could undermine its own chances of resolving the crisis through diplomacy.
Trump previously rolled out the "Maximum Pressure" policy against Iran during his first term, attempting to force Tehran to abandon its nuclear program.
However, Iran refused to yield, further tightening its control over the Strait of Hormuz and putting forward its own preconditions for negotiations.
US administration officials said Trump believes Iran has proven far more resilient than anticipated, and accused the Iranian government of lacking sincerity in negotiations.
The Strait of Hormuz Becomes a Critical Wildcard
Over the past several months, the US and Iran have been deadlocked over ending hostilities and shipping access through the Strait of Hormuz.
Recently, Iran laid out conditions for resuming shipping through the strait, including demands that the US compensate for damages caused by its prior military operations.
Trump rejected the demand and issued counter-claims, requiring Iran to take responsibility for US personnel deaths over the past decades, as well as fatalities among Iranian protesters in recent unrest.
Trump stated on social media that these demands will be embedded in the framework of all future negotiations.
The US Bets Entirely on Economic Sanctions
Trump’s decision to put military action on hold and pivot to economic sanctions represents a policy adjustment amid sustained Iranian resistance.
Before the outbreak of the latest conflict, several senior US advisors argued that an economic blockade alone would be enough to weaken Iran’s hardline government. But Trump ultimately opted for military strikes, aiming to dismantle Iran’s regime and nuclear capabilities.
After military operations failed to deliver desired outcomes, the US turned to diplomatic talks and reached a framework for a tentative peace deal, whose goals included reopening the Strait of Hormuz, curbing Iran’s uranium enrichment activities, and reintegrating Iran into the international community.
Yet the deal collapsed, triggering renewed escalation of regional tensions and prompting the US government to reassess its strategy.
Mike Waltz, US Ambassador to the United Nations, remarked that the Iranian government fears the economic pressure exerted by US Treasury Secretary Scott Bessent far more than the military might of US Defense Secretary Pete Hegseth.
He explained that Iran can withstand military assaults, but its real vulnerabilities lie in currency devaluation, skyrocketing inflation and systemic economic strain.
Bessent previously suggested the strategic importance of the Strait of Hormuz may decline in the long run. He argued that as energy pipeline infrastructure expands, a portion of crude oil shipments will shift to overland routes, gradually diminishing the strait’s global influence.
Energy Markets Plagued by Uncertainty
US administration officials acknowledged Trump could reverse course again, particularly if Iran delivers a tougher retaliatory response. Still, they believe suspending military escalation will ease jitters roiling global energy markets.
Richard Goldberg, former senior advisor to the White House National Energy Advantage Committee, stated that the optimal strategy would be to boost global oil supply while keeping the threat of escalation on the table. At the same time, he warned that excessive concessions could allow Iran to rebuild its strength, while military escalation would trigger severe turbulence across worldwide energy markets.
Market analysts pointed out the US economic pressure campaign carries inherent risks.
Eric Brewer, former White House and intelligence community nuclear affairs official, commented: “Will the US maritime blockade further worsen Iran’s already dire economic situation? Absolutely. But we cannot expect Iran to sit back and do nothing.”
He added Iran has demonstrated a higher threshold for absorbing pressure than Washington anticipated. “Right now, the US has no good options, only less bad ones.”
Mounting Domestic Political Pressure in the US
Meanwhile, the protracted Iran conflict has amplified domestic political headwinds for Trump. Growing numbers within the Republican Party worry that a drawn-out war will hurt the party’s performance in the midterm elections.
A joint survey by the Associated Press and NORC found that as of late July, only 28% of US adults approved of Trump’s handling of the Iran conflict, down from 34% one month prior.
Republican voters, however, remain relatively supportive of his Iran policies.
Trump previously floated the idea of declaring victory for the US if Iran fully reopened the Strait of Hormuz, even in the absence of a formal nuclear accord.
Trump recently told senior aides that previous US military strikes on Iranian nuclear facilities had degraded Tehran’s capacity to develop nuclear weapons.
US Vice President JD Vance said the US will maintain pressure on Iran to force a long-term reset in bilateral relations. “If Iran refuses to change, we will keep applying maximum pressure, while ramping up Middle Eastern energy exports to drive down fuel prices for American consumers.”
“The game is still ongoing,” Vance added.