Trump returns to an old weapon: Behind US's decision to economically choke Iran - analysis
US Treasury Secretary Scott Bessent said last month that the administration’s economic policy had sent the Iranian currency into "free fall" and pushed inflation into triple-digit rates.
After months of conflict, with strikes, threats, and negotiations all proving unsuccessful, US President Donald Trump is once again employing a time-honored tactic in his arsenal against Iran: economic sanctions. According to the Wall Street Journal, Trump has opted for a "wait and see" approach, allowing financial sanctions and the US naval blockade of Iranian ports to exert more pressure on Iran's economy before resorting to another wave of strikes.
This decision was influenced by internal administration persuasion, with data presented to demonstrate the economic impact of existing sanctions on Iran. Trump's administration has recommended further tightening of these sanctions and the introduction of new ones, believing economic pressure could be the most effective means to compel Iran to back down.
On Monday, Trump announced this shift publicly, stating Iran has "no money" and that "Iran is broke, completely broke." However, Trump's choice to pursue this route highlighted his reservations about two other potential options: resuming full-scale war and reopening negotiations with Tehran. Talks regarding the Strait of Hormuz have become convoluted again as Iran demanded substantial concessions, including billions in US payments, the removal of the blockade, and the withdrawal of US forces from the region.
The sanctions strategy offers the US an advantage by enabling Washington to maintain pressure on Tehran without instantly entering a new military round that could raise energy prices and elicit an Iranian counterattack against Gulf infrastructure. While economic pressure provides its benefits, it also presents risks. Experts from previous US administrations warn that a blockade could exacerbate Iran's already fragile economic situation, potentially prompting Tehran's response.
The main vulnerability of this renewed strategy lies in its reliance on economic hardship forcing Tehran to capitulate before deciding to escalate militarily.
Written by urgent.news from Jerusalem Post's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.