Washington: US officials are increasingly convinced that imposing economic sanctions will cause more enduring harm to Iran than military strikes, as reported by Axios. They cite a worsening economic crisis in Iran, suggesting that financial pressure may be more effective than bombs.
According to Axios, Iran is facing significant challenges, including economic sanctions that have restricted its financial resources and access to international markets. The report highlights that Iran is seeking guarantees against future US attacks, access to frozen assets, and relief from sanctions. However, US President Donald Trump remains firm in his stance, opposing any concessions and insisting that Tehran must surrender its remaining nuclear material.
Mediators from Oman, Qatar, and Pakistan are working to transform a temporary pause in hostilities into a lasting ceasefire. One proposal involves Iran and Oman managing traffic through the Strait of Hormuz, similar to the framework used for the Straits of Malacca and Singapore. However, there appears to be internal disagreement within Iran regarding this approach.
A senior US official mentioned to Axios that while sanctions and a naval blockade may take longer to exert pressure on Iran compared to bombing, they could ultimately be more effective. Despite the potential for increased political risks for Republicans and rising fuel prices, the belief is that economic measures could yield better results.
The report also emphasizes the financial strain on Iran, with intelligence indicating that Iranian fighters are struggling to receive payment due to financial pressures. Treasury Secretary Scott Bessent's actions have been particularly impactful, causing significant economic distress in Iran, including gasoline shortages.
Officials revealed that Iran has expressed to US negotiators, Steve Witkoff and Jared Kushner, that accessing frozen funds is a top priority. The Trump administration's "maximum pressure" campaign has seen sanctions imposed on over 1,000 individuals, vessels, and aircraft, targeting Iran's vital sectors.
Critics argue that neither military strikes nor economic pressure will compel Iran to meet Trump's demands. Analyst Brett Erickson noted that Iran's oil revenue exceeded budget expectations in the first half of the year, suggesting that economic warfare alone may not achieve the desired outcome.
White House Press Secretary Karoline Leavitt stated that Trump prefers a diplomatic resolution but retains all options if Iran continues its aggressive actions. The administration is prepared to pursue military or economic strategies to address the situation.