President Trump turns to economic strategy to pressure Iran

Supervising Producer

WASHINGTON —

The Trump administration appears to be shifting its strategy in the war with Iran, prioritizing economic pressure to encourage negotiations.

In an interview with Axios, President Donald Trump reportedly said the U.S. is “low-keying it” as negotiators work to finalize a temporary deal with Iran. Trump described the U.S. as “only semi-negotiating” and said Iran is “in very bad shape” economically.

Following a private briefing with Vice President JD Vance, Sen. Bill Cassidy, R-Louisiana, confirmed the White House is using such tactics. Cassidy characterized Vance’s briefing during an interview with CBS News as continuing “to put economic pressure, for example, by blockades upon the Iranians that will cause them enough discomfort that they will actually come back to the bargaining table.”

Congress is also applying potential economic pressure.

A bill to extend sanctions against Iran, reportedly targeting its weapons and energy sectors, passed the Senate late last week, though the House won’t take up the bill until lawmakers return from break next month.

Iran continues to dig in

Over the weekend, Iranian leaders issued a list of demands to reopen the Strait of Hormuz, including lifting all U.S. sanctions, ending the naval blockade, withdrawing military forces, and paying full compensation for war damages.

Iran is working with Oman to temporarily open the Strait of Hormuz to international shipping as an effort to revive the agreement the U.S. and Iran signed in June but has since disregarded.

Trump claims Iran is struggling financially, stating it has no money to pay its troops. U.S. officials have also pointed to growing disagreements among Iranian leaders, with some reportedly concerned about economic collapse and the need to reach a deal with the U.S., while others refuse to make concessions at all.

The internal division has complicated Iran’s efforts to finalize a deal, though if it succeeds, it could allow Iran to potentially charge fees for ships passing through the Strait of Hormuz.

Meanwhile, the U.S. is also feeling the impact of the conflict. Trump has described the economic pain as temporary, noting improvements in oil and fuel prices.

Officials report that around 8 million barrels of oil are leaving the Strait of Hormuz each night, bringing international oil prices to $83 per barrel as of Monday morning, down from a peak of $114 in May.

The U.S. is also facing challenges with its weapons stockpile. The Pentagon recently asked weapons manufacturers to submit plans within three weeks to accelerate production.

Watch the latest on the U.S.-Iran war: