Washington: US officials have expressed confidence that economic sanctions will inflict more enduring damage on Iran than military actions, as reported by Axios. This stance arises amidst what is described as a worsening economic crisis in Iran.
According to TRTworld.com, the discussion centers around economic pressure as a more sustainable strategy against Iran compared to military interventions. A senior US official stated, "The Iranians want to stop being bombed and they want money. But that's almost in reverse order. They really want the money first." This sentiment follows recent claims by US President Donald Trump that Iran requested discussions on a deal after he halted US strikes over the weekend. However, Tehran has denied these claims.
Mediators from Oman, Qatar, and Pakistan are working to transform the current pause in hostilities into a lasting ceasefire. One proposal under consideration involves granting Iran and Oman a role in managing the strategic Strait of Hormuz. This plan draws inspiration from the management framework of the Straits of Malacca and Singapore. A senior administration official noted the internal division within Iran regarding the proposal, stating, "Some of the Iranians want this. Others don't. That's part of the issue."
According to Axios, Iran is seeking guarantees against future US attacks, access to frozen assets, and relief from sanctions. President Trump is opposed to offering such concessions and insists on Iran surrendering its remaining nuclear material. A US official conveyed to Axios that while sanctions and a naval blockade might apply pressure more slowly than bombing, they could ultimately be more effective. This approach, however, carries political risks for Republicans and could lead to higher fuel prices.
Access to funds has been identified as a top priority for Iran. A US official noted, "Intelligence is picking up that the Iranians are complaining they can't pay their fighters. Why? Because of the financial pressures. Because of Treasury. Because of what (Treasury Secretary) Scott Bessent is doing." The official also highlighted the risk of bank runs and gasoline shortages in Iran, stating, "They're more scared of Treasury than the War Department (Department of Defense)."
Officials have claimed that Iran has previously communicated to US negotiators Steve Witkoff and Jared Kushner that gaining access to frozen funds is a top priority. One official alleged, "They're begging Steve and Jared for cash. They're desperate for it."
The Trump administration has imposed sanctions on over 1,000 individuals, vessels, and aircraft under its renewed "maximum pressure" campaign targeting Iran's oil exports, financial networks, weapons procurement, and shipping sectors. Critiques of this strategy argue that neither military strikes nor economic pressure is likely to compel Iran to meet Trump's demands. Analyst Brett Erickson pointed out that Iran earned an estimated $23 billion in oil revenue during the first half of the year, surpassing budget expectations.
"Economic warfare is a fundamentally broken approach to the Iran War," Erickson tweeted on Monday.
White House Press Secretary Karoline Leavitt emphasized that Trump "prefers a diplomatic solution, but he continues to retain all options if Iran continues terrorist activities in the Strait of Hormuz or against allies." Leavitt added that, "Combined with successful sanctions that have crippled Iran's economy and 13 straight days of strikes against military targets in response to their repeated aggression, it would be wise for Iran to work toward a negotiated deal. Otherwise, they know what will happen."
Another US official indicated that the administration is prepared to use either military or economic pressure, stating, "The president has a win-win optionality. The US is capable of prosecuting this militarily to the fullest extent. And the US is capable of exerting economic sanctions that cripple Iran."
