Washington: US officials assert that economic sanctions could exert more enduring damage on Iran than military strikes, as highlighted in a recent report by Axios. The report underscores the belief among US officials that economic pressure could be a more strategic tool in dealing with Iran's current economic crisis.
According to TRTworld.com, the economic strain on Iran is leading US officials to believe that sanctions are a more viable option than military action. The report notes that Iran is experiencing significant financial difficulties, which are exacerbated by the US Treasury's measures. A senior US official remarked, "The Iranians want to stop being bombed and they want money. But that's almost in reverse order. They really want the money first."
President Donald Trump recently mentioned that Iran had expressed interest in negotiations following a pause on US military strikes. This pause came after nearly two weeks of escalating tensions. However, Iran has denied any claims of seeking talks on a deal. Mediation efforts are underway, with Oman, Qatar, and Pakistan attempting to broker a lasting ceasefire. One proposal under discussion involves Iran and Oman jointly managing traffic through the Strait of Hormuz, emulating the framework used for the Straits of Malacca and Singapore.
Axios further reports that Iran is seeking assurances against future US military actions, access to frozen assets, and relief from sanctions. However, President Trump remains firm in his stance, opposing concessions and demanding that Tehran relinquish its remaining nuclear materials.
A US official told Axios that while sanctions and a naval blockade might take longer than bombing to exert pressure on Iran, they could ultimately prove more effective. This approach, however, carries political risks for Republicans and could potentially lead to higher fuel prices.
The financial pressure on Iran is evident, as noted by a US official who stated, "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 added that Iran is facing gasoline shortages and the threat of bank runs, underscoring the severe impact of the economic measures.
Negotiations with US representatives Steve Witkoff and Jared Kushner have revealed that accessing frozen funds is a top priority for Iran. "They're begging Steve and Jared for cash. They're desperate for it," an official claimed.
The Trump administration has imposed sanctions on over 1,000 entities, encompassing individuals, vessels, and aircraft, as part of its "maximum pressure" campaign targeting Iran's oil exports, financial networks, and shipping sectors. Despite these efforts, critics argue that neither military nor economic pressure is likely to compel Iran to meet Trump's demands. Analyst Brett Erickson pointed out that Iran's oil revenue exceeded budget projections, earning an estimated $23 billion in the first half of the year.
White House Press Secretary Karoline Leavitt emphasized Trump's preference for a diplomatic resolution while maintaining all options if Iran persists in aggressive actions in the Strait of Hormuz or against allies. "Combined with successful sanctions that have crippled Iran's economy and 13 straight days of strikes against military targets, it would be wise for Iran to work toward a negotiated deal," Leavitt stated.
A US official reiterated the administration's readiness to pursue either military or economic pressure, highlighting the president's "win-win optionality" in addressing the situation with Iran.