The administration of U.S. President Donald Trump is moving to strengthen its bet on economic sanctions as a more effective tool than military options in increasing pressure on Iran, at a time when Washington sees the economic crisis worsening rapidly, which could push Tehran to make concessions during any future negotiations.

A Long-Term Pressure Tool

According to Axios, senior officials in the U.S. administration believe that financial pressures, along with tightening the blockade on maritime trade, represent a long-term pressure tool that can achieve political goals beyond the results of military operations, which have captured media attention in recent times.

The report quoted a senior U.S. official as saying that the Iranian leadership "wants the bombing to stop, but it wants money more," indicating that Tehran's priority is to ease sanctions and release frozen funds, which would allow for the revitalization of the damaged economy.

The U.S. administration, according to the report, relies on intelligence estimates and indicators from open sources that point to the worsening economic conditions in Iran, including the continued fuel shortages despite the country having one of the largest oil reserves in the world, as well as declining liquidity and increasing pressures on the banking sector.

Funding Shortages for Regional Allies

U.S. officials reported that sanctions have begun to affect Iran's ability to fund its regional allies, with intelligence reports indicating difficulties in paying fighters linked to Tehran, alongside concerns about Iranian banks facing large withdrawal waves due to the ongoing economic crisis.

On the diplomatic front, the report clarified that indirect communications between Washington and Tehran are still ongoing through the mediation of Oman, Qatar, and Pakistan, despite the Iranian Foreign Ministry denying previous statements by Trump regarding an Iranian request to hold a meeting about a new agreement.

It pointed out that one of the issues raised in these consultations is a proposal that grants Iran and Oman a larger role in managing navigation through the Strait of Hormuz, which could provide both parties with additional revenues, but Washington stipulates that any agreement must include Iran relinquishing what remains of its nuclear materials, while refusing to offer economic gains in exchange for what it considers a threat to international navigation.

Maintaining the Diplomatic Option

As part of the "maximum pressure" policy, the Trump administration has reimposed extensive sanctions targeting more than a thousand individuals, ships, and aircraft, including Iranian oil trade, financing networks, shipping sector, and arms purchases.

Although analysts acknowledge that sanctions may require a longer time to achieve their goals compared to military options, the U.S. administration insists on adhering to this approach, while keeping the diplomatic option open, alongside the continued economic pressures, while Iran continues to assert that sanctions have not prevented it from continuing its oil exports and rejects the U.S. narrative regarding the impact of these pressures on its policies.