DistantNews
Support us
Trump favors 'low-key' economic pressure on Iran
๐Ÿ‡ธ๐Ÿ‡ฆ Saudi Arabia /Economy & Trade

Trump favors 'low-key' economic pressure on Iran

From Asharq Al-Awsat · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Sources not specified Context piece
  • President Donald Trump is prioritizing economic pressure and sanctions over diplomacy or military strikes against Iran.
  • Trump claims Iran is economically crippled with high inflation and lacks funds, asserting U.S. control over the Strait of Hormuz.
  • Experts note Iran's economic struggles but question the extent to which its leaders are affected, while Iran views increased sanctions as a strategic retreat by the U.S.

President Donald Trump is adopting a "low-key" strategy against Iran, emphasizing economic pressure and sanctions rather than direct diplomacy or military action. "We are low-keying it," Trump told Axios, adding that the U.S. is "semi-negotiating" and monitoring Iran's severe inflation and financial difficulties. He reiterated that while military strikes remain an option, the focus is on the economic damage inflicted by sanctions.

We are low-keying it.

โ€” Donald TrumpPresident Trump described his strategy towards Iran in a phone call with Axios.

Trump asserted that Iran is "totally broke" and unable to pay its soldiers, citing inflation rates exceeding 300 percent. He also claimed the U.S. has "total control" of the Strait of Hormuz, a vital oil trade route and a point of geopolitical tension.

We're only semi-negotiating with them. We are just watching Iran with its huge inflation and the fact they have no money.

โ€” Donald TrumpPresident Trump explained his approach to negotiations and Iran's economic situation to Axios.

However, experts like Michael O'Hanlon from the Brookings Institution suggest that while Iran faces significant economic hardship, including difficulties shipping oil and accessing overseas assets, it's unclear how much its leaders are truly concerned. Iran's foreign ministry spokesman, Esmaeil Baqaei, called the renewed push for sanctions a "retreat" by the U.S., stating that Iran has endured such measures for decades and that sanctions often fail to yield results, leading to increased pressure.

Iran is broke, totally broke and they're not paying their soldiers.

โ€” Donald TrumpPresident Trump commented on Iran's economic state in the Oval Office.

This strategic shift by Trump may also reflect limited military options for the U.S., with reports of depleted munitions stockpiles. The administration recently announced new measures targeting Iran's Revolutionary Guard Corps (IRGC), and advisors have presented data on the impact of sanctions, which Trump is reportedly considering tightening.

Iran is in terrible shape economically. It can't ship oil at any meaningful level. And it still labors under sanctions and still can't access its overseas assets.

โ€” Michael O'HanlonAn expert from the Brookings Institution described Iran's economic condition.
DistantNews Editorial

Originally published by Asharq Al-Awsat in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.