WASHINGTON – The administration of US President Donald Trump believes economic pressure could ultimately prove more damaging to Iran’s leadership than military strikes, as Washington intensifies sanctions and maritime pressure aimed at forcing Tehran into negotiations, according to US officials.
While the recent US bombing campaign against Iran attracted global attention, senior administration officials argue that the financial squeeze imposed through sanctions may be the more effective tool in weakening the Iranian government’s ability to sustain its regional activities and withstand international pressure.
US intelligence assessments and open-source reporting indicate that Iran’s economic difficulties are deepening, including fuel shortages in a country that holds some of the world’s largest energy reserves.
A senior US administration official told Axios that Iranian leaders want an end to military strikes but are even more focused on easing economic pressure.
“The Iranians want to stop being bombed and they want money,” the official said. “But that’s almost in reverse order. They really want the money first.”
The comments reflect Washington’s assessment that access to frozen funds, relief from sanctions and the ability to maintain financial networks are central priorities for Tehran as it faces mounting economic strain.
Economic pressure on Tehran
US officials said intelligence reports indicate that financial restrictions are beginning to affect Iran’s ability to support allied armed groups across the region.
“Intelligence is picking up that the Iranians are complaining they can’t pay their fighters,” one US official said, attributing the pressure to financial restrictions imposed by the US Treasury.
“They’re in danger of runs on banks. There are gasoline shortages in this giant oil-rich country,” the official added. “They’re more scared of Treasury than the War Department.”
The administration has also warned that Iran’s banking sector could face further instability as liquidity pressures increase and public confidence weakens.
Washington has revived its “maximum pressure” campaign against Tehran, imposing sanctions on more than 1,000 individuals, vessels and aircraft linked to Iran’s oil trade, informal financial networks, weapons procurement and shipping operations.
Talks through mediators
The renewed economic pressure comes as diplomatic contacts continue following Trump’s decision to pause US strikes after 13 consecutive days of attacks.
Trump said Tehran had requested a meeting to discuss a possible agreement, though Iranian Foreign Ministry spokesperson Esmaeil Baghaei denied that claim.
Despite the public disagreement, US officials said talks between the two sides are continuing through intermediaries, including Oman, Qatar and Pakistan, with efforts focused on turning the pause in fighting into a longer-term ceasefire arrangement.
A key issue under discussion is a proposal involving the management of maritime traffic through the Strait of Hormuz, according to the report.
The proposal would give Iran and Oman a role in overseeing parts of shipping activity through the strategic waterway, potentially creating a source of revenue.
Officials said the idea draws from cooperative arrangements used in the Straits of Malacca and Singapore, where regional countries coordinate maritime services and security.
“Some of the Iranians want this. Others don’t. That’s part of the issue,” a senior US official said.
Washington demands nuclear concessions
Iran has sought guarantees that it will not face further US attacks and wants access to frozen financial assets and relief from sanctions.
However, the Trump administration remains reluctant to provide economic benefits without major concessions from Tehran.
Officials said Trump is unwilling to reward Iran for disrupting international shipping and is demanding that Tehran surrender its remaining nuclear material as part of any agreement.
White House Press Secretary Karoline Leavitt said the president preferred a diplomatic outcome but would maintain military options.
“President 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,” she said.
“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.”
Sanctions versus military action
US officials acknowledged that economic pressure could take longer to produce results than a large-scale military campaign.
A second US official said sanctions and naval pressure would require patience but could ultimately provide Washington with leverage without expanding the conflict.
“The president has a win-win optionality. The US is capable of prosecuting this militarily to the fullest extent. And the US is capable to exerting economic sanctions that cripple Iran,” the official said.
Critics of the strategy, however, argue that economic warfare may not achieve Washington’s objectives.
Analysts have pointed out that Iran has continued exporting oil despite sanctions, with some estimates suggesting Tehran generated significant oil revenues despite restrictions.
Brett Erickson, an analyst at Obsidian Risk Advisers, argued that economic pressure alone may not force Iran to accept US demands, writing that “economic warfare is a fundamentally broken approach to the Iran War.”
The debate highlights the central dilemma facing Washington: whether sustained economic pressure can bring Tehran to the negotiating table, or whether prolonged confrontation risks further regional instability and political costs at home.