President Donald Trump signaled Sunday that he is prepared, for now, to allow mounting economic pressure on Iran to do more of the work rather than order a new military offensive, telling Axios, “We are low keying it.”

“We are only semi-negotiating with them. We are just watching Iran with its huge inflation and the fact they have no money,” Trump said during a brief phone call. He said Iran is “in very bad shape” economically and lacks the money to pay its troops, adding that the U.S. naval blockade has worsened the regime’s economic crisis.

Trump also pointed to oil prices, saying that with crude slightly above $75 a barrel, American consumers are feeling less pain from the war. “It will work out. It always works out. It’s like a chess game,” he said.

The comments come as an agreement negotiated among Iran, Oman and the United States over traffic through the Strait of Hormuz remains stalled. Under the proposed arrangement, Iran would receive partial control over traffic in the strait. Qatari and Pakistani mediators had expected an announcement Wednesday, but the prospects for a deal have since faded.

Axios reports that Iranian officials are increasingly divided over how to proceed. One camp, led by President Masoud Pezeshkian, is deeply concerned about a possible economic collapse and favors reaching an agreement with Washington. Another, led by IRGC commander Ahmad Vahidi, opposes making concessions.

On Saturday, Iran’s Supreme National Security Council chief, Mohammad Bagher Zolghadr, issued additional conditions for reopening the Strait of Hormuz. They included demands that the U.S. never threaten or insult Iran, permanently end the war against Iran and its allies in Lebanon, Gaza, Yemen and Iraq, lift the naval blockade and withdraw forces from areas surrounding Iran.

Zolghadr also demanded full compensation for war damages, the lifting of all sanctions and the release of frozen Iranian funds. The demands had previously been tied to a broader nuclear agreement but are now being presented as conditions for reopening the strait.

U.S. officials told Axios that Trump had been leaning toward resuming major combat operations against Iran about a week ago before deciding, for now, to de-escalate. One official said that when Iran is not actively fighting, the regime is forced to confront the damage to its infrastructure and the deepening economic crisis.

At the same time, around 8 million barrels of oil are moving out of the Gulf each night through the southern lane of the Strait of Hormuz in coordination with the U.S. military, and U.S. officials say they intend to increase that flow while negotiations remain unresolved.

(YWN World Headquarters – NYC)