President Donald Trump is shifting toward a strategy of sustained economic pressure against Iran as diplomatic efforts remain stalled, betting that intensified sanctions and restrictions on Iranian trade will eventually force Tehran to accept U.S. demands.
The change comes as the conflict enters its sixth month, with oil prices rising, the Strait of Hormuz heavily disrupted, and U.S. borrowing costs reaching their highest levels in nearly two decades.
Iran, meanwhile, appears prepared to absorb significant economic pain rather than accept terms its leaders believe could threaten the survival of the regime.
Trump Expands Economic Pressure
Trump announced what he described as an unprecedented economic campaign against Iran, warning that countries providing financial or commercial assistance to Tehran would face severe consequences.
The President specifically cited oil smuggling, financial transfers, exchange houses, ship registries and front companies as potential targets.
Treasury Secretary Scott Bessent, who is scheduled to hold a news conference on Monday, is expected to detail additional measures as the administration considers ways to increase pressure on Iran. Options reportedly include targeting Chinese banks involved in Iranian oil transactions, expanding secondary sanctions and potentially confiscating Iranian assets under U.S. jurisdiction.
The United States has already sanctioned foreign buyers of Iranian oil, targeted vessels involved in transporting Iranian petroleum and sought to restrict Iran’s access to international financial networks.
Washington Bets on a Long Economic Struggle
The economic campaign represents a shift in emphasis after months of military action and intermittent diplomacy. Trump has said there are currently no talks scheduled with Iran and that the U.S. naval blockade remains in force.
The administration’s strategy now appears focused on maintaining pressure over time rather than attempting to force Tehran into an immediate agreement.
Iranian officials have dismissed the approach, arguing that decades of U.S. sanctions have failed to force the Islamic Republic into submission.
Former U.S. Ambassador James Jeffrey questioned whether another round of sanctions could produce a decisive result after years of economic pressure.
“It’s an attrition campaign,” Jeffrey said, noting Iran’s experience in circumventing sanctions.
Iran’s Economy Under Severe Pressure
Iran’s economy was already struggling before the war and has deteriorated further, with annual inflation of roughly 88%, fuel shortages, long lines at gas stations, and food prices that have more than doubled. The Iranian rial has also fallen sharply as restrictions on oil exports squeeze government revenue.
Yet analysts say economic hardship may not be enough to force Tehran to concede.
Ali Vaez, Iran project director at the International Crisis Group, said Iran’s leadership has historically been willing to transfer economic pain to its population.
Sanam Vakil of Chatham House, an independent policy institute and think tank based in London, said Tehran views resistance as essential to the regime’s survival.
Strait of Hormuz Remains a Flashpoint
The Strait of Hormuz remains central to the confrontation.
Before the war, roughly 20 million barrels of crude and refined petroleum products moved through the waterway each day. Traffic has since fallen sharply, although U.S. officials say oil continues to pass through the strait.
Saudi Arabia and the United Arab Emirates have increased the use of pipelines to bypass the waterway.
The disruption has nevertheless contributed to higher global energy prices. Brent crude recently climbed above $94 a barrel.
The conflict is also creating economic risks for the United States. Higher energy prices could prolong inflation, while the yield on 30-year Treasury bonds recently reached its highest level since before the global financial crisis.
Political Pressure Builds on Trump
The economic consequences come as Trump approaches the 2026 midterm elections.
A Reuters/Ipsos survey cited in the reporting found Trump’s approval rating at 33%, his lowest level of the presidency. About 80% of respondents said they expected U.S. involvement in Iran to continue for an extended period.
Vice President JD Vance has said keeping oil and gas affordable for Americans is among the administration’s priorities.
Trump, however, has maintained that he is not operating under a deadline.
“I have no time schedule. I’m not in a hurry,” he said, per World Israel News.
The administration believes Iran’s worsening economy and domestic unrest will eventually force Tehran back to negotiations.
Iran appears to be making the opposite calculation: that Washington will eventually face greater political and economic costs from the prolonged conflict.
For now, Trump is betting that economic pressure can accomplish what military force and diplomacy have not — force Iran to compromise without sending U.S. ground troops into another prolonged Middle East war.
Provided by Dallas Express
