The Trump administration has returned to its earlier economic pressure campaign against Iran, focusing on sanctions and a naval blockade to stifle Iranian oil exports after nearly six months of conflict failed to force Iran to capitulate [1, 2, 3]. This reversal comes just days after the administration threatened to escalate military operations against Tehran [1, 2, 3].

US officials expressed wariness about continuing an unpopular military conflict amid a shortage of munitions. President Donald Trump told Axios he is "low-keying it" with Iran, citing concerns over Iran’s severe inflation and financial constraints [1, 3].

US Ambassador to the UN Mike Waltz said the economic approach, led by Treasury Secretary Scott Bessent, is hitting Iran harder than military strikes. He noted, "Operation Economic Fury, led by Secretary Scott Bessent, is devastating the Iranian economy. They would absorb the bombings but are more afraid of Bessent than Defence Secretary Pete Hegseth" [1]. Treasury Secretary Bessent added that "The government is causing the people to suffer, and we’re going to keep pressing," underscoring the continued focus on economic measures [1, 3].

On August 13, US Energy Secretary Chris Wright described Iran as having "a losing strategy at the end that will lead to the collapse of this regime in Iran as their economy gets strangled." He said the US has improved capabilities to escort goods through the Strait of Hormuz, shrinking Iran’s leverage over global oil markets. Wright observed, "They have sort of one card, and it’s shrinking in size" [3].

Some analysts suggest US sanctions are growing more effective as countries like the UAE reduce Iranian sanctions evasion and global markets lessen dependence on Iranian commodities, though their views are less certain [3].

The renewed economic pressure strategy represents a concrete shift in US tactics after months of stalemate in military conflict. Officials plan to maintain and intensify sanctions and blockade efforts as their primary tool to influence Tehran’s behavior [1, 2, 3].