Trump pivots back to sanctions for Iran as other strategies to end his war fizzle
U.S. President Donald Trump likes to say that he started his war with Iran after 50 years of economic pressure had failed to stop its
U.S. President Donald Trump likes to say that he started his war with Iran after 50 years of economic pressure had failed to stop its nuclear weapons ambitions — but he's now betting that another financial squeeze can bring an end to that war. The Trump administration is hoping that months of bombing have pushed Iran's economy to a breaking point that will force its leadership to cave to demands to end its nuclear program and fully reopen the Strait of Hormuz to oil and natural gas tankers. Far from over: On the U.S.-Iran conflict The President on Monday (August 10, 2026) said that since Iran is seeking compensation as part of any peace talks, he now intends to demand the same for the U.S. side. It's part of a larger pivot this weekend by Mr. Trump to argue that Iran is now on the cusp of financially collapsing, even though it has already endured decades of financial sanctions, which are often a longer-term strategy rather than an immediate tool of warfare that can halt a conflict. The shift comes as U.S. stockpiles of key weapons have dwindled and as stop-start talks seem again to have stalled. But Mr. Trump insists the pressure can lead to a breakthrough. “Yeah, they can make trouble, but they're broke,” Mr. Trump told reporters. “They have no money. You know, Iran is broke, totally broke. And they're not paying their soldiers. They have inflation of 300%.” Inflation is running high in Iran, although Mr. Trump's estimates were higher than what administration officials have been citing to reporters. But the prospect of a longer war also carries inflation risks for other nations, including the U.S. — where the war and higher gasoline prices are unpopular. Crude oil prices climbed on Monday (August 10, 2026) as investors interpreted Mr. Trump's comments as a sign that fewer ships would be traversing the Strait of Hormuz, continuing to limit global supplies of gasoline, jet fuel, natural gas and other forms of energy.
The Iran war largely closed the waterway involved in shipping roughly 20% of global oil supplies before the conflict — and attempts to reopen the strait have been short-lived as it has become a source of leverage for the Iranians in negotiations. Iran does not appear to be publicly intimidated by the prospect of more financial sanctions. “Whenever Washington proves itself incapable of pursuing diplomacy, it retreats into sanctions; and whenever those sanctions fail to produce results, it simply increases the dose,” said Esmaeil Baqaei, spokesman for Iran's Foreign Ministry, on social media. “The real risk is that American politicians, clinging to this bad habit, will instead strangle their own remaining chances of a less humiliating exit from a crisis of their own making.” West Asia LIVE The White House has called this Operation Economic Fury' The President didn't say what additional financial pressure would be applied, but the administration has since April 16 been engaged in what it calls “ Operation Economic Fury ” against Iran. Treasury Secretary Scott Bessent called this component the “financial equivalent” of a bombing campaign, as the countries that buy oil from Iran or bank with it could be sanctioned. But one problem with this pivot is that the sanctions are unable to bite as quickly as the impact of the largely shuttered strait, said Richard Nephew, a senior research scholar at Columbia University who helped direct Iran sanctions strategy in the Obama administration. Nephew stressed that the value of sanctions as a tool is limited because Mr. Trump has not articulated clear strategic goals for the war, at times stressing that it can't have a nuclear weapon, then emphasising the Strait, and then talking about ballistic missiles. Instead, Trump has engaged in a massive series of aerial assaults and a level of destruction that has not produced the quick end that he initially promised.
The BriefWire