Trump ‘low-keying it’ on Iran, as he bets on economic pressure

President Trump appeared on Sunday to indicate that the U.S. is prepared to intensify economic sanctions on Iran instead of launching a military assault, despite the nation persisting in its defiance of U.S. demands. This shift from potential military action to economic measures came after an interview with Axios, where Trump did not make any fresh threats of military action.

However, he did not vocalize any anger or disappointment over Iran's current obstruction of an agreement to reopen the Strait of Hormuz. In a recent statement, Iran presented a new list of prerequisites for the reopening of the strait, escalating the dispute. On Saturday, Iran outlined new conditions for the Strait of Hormuz to reopen, which included the U.S. not insulting Iran, permanently ending conflicts with Iran's allies, and withdrawing military forces from Iran's vicinity.

Additionally, Iran demanded full reparations for war damages, the removal of sanctions, and the release of frozen Iranian assets. Iran's Supreme National Security Council head, Mohammad Bagher Zolghadr, presented these demands, reflecting internal political disagreements within the regime. In contrast, U.S. officials noted that Trump was initially considering resuming major military operations against Iran a week ago, but was persuaded to de-escalate the situation.

The naval blockade has worsened Iran's economic crisis, with the regime struggling to pay its military personnel due to severe inflation and lack of funds. Despite the ongoing tensions, U.S. officials highlighted that around 8 million barrels of oil continue to flow through the Strait of Hormuz each night, facilitated by U.S. military coordination.