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Yeshiva World News

STRATEGY: Trump Turns To Economic Pressure As Iran Refuses U.S. Demands

Aug 11, 2026·3 min read

President Donald Trump has settled, at least for now, on a new strategy toward Iran: intensifying economic pressure while holding off on additional military strikes, as diplomatic efforts remain stalled and Tehran refuses to meet U.S. demands.

The Wall Street Journal reports that Trump has adopted a wait-and-see approach that would give financial sanctions and the U.S. naval blockade of Iranian ports more time to inflict economic damage. Aides have shown Trump statistics detailing the devastating effects of existing sanctions, arguing that tightening penalties and cutting off Iranian oil sales could prove the most effective way to force the regime to capitulate.

Trump, for now, appears to have embraced that approach, telling aides he prefers not to order additional strikes. “They have no money,” Trump told reporters Monday. “Iran is broke, totally broke.”

Iranian Foreign Ministry spokesman Esmail Baghaei dismissed the strategy, saying it would not succeed and accusing Washington of being incapable of diplomacy. “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,” Baghaei said.

Trump has privately raised the possibility of declaring victory in the war if Iran fully reopens the Strait of Hormuz, even without reaching a nuclear agreement. He has also recently told senior aides that U.S. intelligence capabilities would likely detect attempts by Tehran to rebuild nuclear facilities struck by the United States last year or to covertly build a nuclear weapon.

At the same time, Trump has not abandoned the possibility of military action. U.S. officials told the Journal that he could change course again, particularly if Iran responds aggressively. Officials believe the current pause in strikes could also help calm volatile energy markets.

Trump has instructed U.S. representatives to put his latest proposal to Iran “fully into text, and all future negotiations,” while continuing to insist that Iran must accept restrictions preventing it from enriching uranium. Iran has rejected that demand.

The administration is also focused heavily on energy prices. Officials believe increased oil production could cushion the economic effects of the conflict and reduce Tehran’s leverage. Vice President JD Vance said the U.S. intends to continue pressuring Iran while simultaneously pushing as much oil and gas as possible onto the market to lower American energy prices.

“And if not, that’s fine, too, we’re just going to keep on applying the pressure we can apply, and getting as much oil and gas out of the Middle East so that Americans can enjoy lower gas and energy prices,” Vance said.

“We’re in the middle of the game,” he added.

(YWN World Headquarters – NYC)

View original on Yeshiva World News