US President Donald Trump on Sunday said he is "low-keying it" with Iran, signaling a shift away from potential military strikes toward economic pressure [1, 2, 3]. Trump said, "We are only semi-negotiating with them. We are just watching Iran with its huge inflation and the fact they have no money," underscoring a focus on Iran’s economic struggles [2].
Trump described Iran as being in "very bad economic shape" and struggling to pay its troops amid worsening conditions [2, 3]. A US naval blockade has further deepened Iran’s economic crisis, according to officials [2, 3]. Meanwhile, oil prices have fallen to slightly above $75 a barrel, easing costs for American consumers [1, 2, 3].
Iran has delayed announcing a deal negotiated with Oman to reopen the strategic Strait of Hormuz, issuing new demands on August 8, 2026 [1, 2]. The new Iranian terms include that the US must never threaten Iran, conflicts in Lebanon, Gaza, Yemen, and Iraq must end, and the naval blockade has to be lifted before the strait reopens [2].
Inside Iran, there are divisions between a faction led by President Masoud Pezeshkian advocating for a deal with the US and a hardline group led by IRGC commander Ahmad Vahidi opposing concessions [2].
Trump expressed confidence the situation will be resolved, saying, "It will work out. It always works out. It's like a chess game" [2].
