Trump signals shift to economic pressure on Iran over new military strikes

“We are low-keying it,” Trump said in an Axios interview on Sunday, pointing to a more cautious approach after months of conflict and adding that Washington is “only semi-negotiating” with Tehran while monitoring the toll the war has taken on Iran’s economy.

He said Iran is in “very bad shape” financially, citing high inflation and difficulty paying its own troops, and credited a US naval blockade in place since April with deepening that pressure.

Trump also said falling oil prices, now just above $75 a barrel, have eased the economic impact on American consumers.

“It will work out. It always works out. It’s like a chess game,” he said.

Trump’s remarks come as talks mediated by Oman over reopening the Strait of Hormuz to shipping appear close to a breakthrough. Iran’s foreign ministry said this month that the talks had reached their “final” stages, with both sides nearing an agreement on coordinates for a new shipping route through the strait.

Tehran has stressed it would not fully reopen the waterway until the US “corrects its behaviour”, which includes demands to lift the naval blockade, halt military actions and pay war damages.

A ceasefire reached in June collapsed weeks later over disputes about control of the strait, and fighting resumed.

Since then, Iran has continued intermittent strikes on US bases in Kuwait, Bahrain and Jordan, while Yemen’s Houthis, who are aligned with Tehran, declared a separate naval blockade against Saudi Arabia last month.

Recent reporting has suggested friction between Washington and Israel over the pace of US efforts to wind down fighting on multiple fronts, including in Gaza and Lebanon.