US President Donald Trump signaled Sunday that he is taking a lower-key approach toward Iran for now, allowing economic pressure to intensify rather than immediately ordering a renewed major military offensive.
In a brief phone interview with Axios, Trump said, “We are low keying it,” adding that the US was only “semi-negotiating” with Iran while watching its worsening economic situation.
“We are just watching Iran with its huge inflation and the fact they have no money,” Trump said, stressing that Iran is in “very bad shape” economically and lacks the money to pay its troops. He said the US naval blockade had further aggravated the Iranian regime’s economic crisis.
Trump also said the decline in oil prices to slightly above $75 a barrel was easing the impact of the conflict on American consumers.
“It will work out. It always works out. It’s like a chess game,” Trump said of the ongoing standoff with Iran.
The shift comes just a week after Trump was reportedly considering a return to major combat operations against Iran.
However, he did not issue any new military threats in the Axios interview and showed no apparent frustration over Iran’s delay in finalizing an agreement with Oman on reopening the Strait of Hormuz.
The proposed agreement, negotiated by Iran, Oman and the US, would regulate shipping through the strategic waterway and reportedly give Iran partial control over maritime traffic.
Mediators from Qatar and Pakistan had expected an announcement last Wednesday, but prospects for the deal have since weakened.
Iran’s Supreme National Security Council chief, Mohammad Bagher Zolghadr, on Saturday outlined additional conditions for reopening the strait.
He demanded that the US permanently end the war against Iran and its allies in Lebanon, Gaza, Yemen and Iraq, lift its naval blockade and withdraw military forces from around Iran.
Iran also demanded compensation for war damages, the lifting of sanctions and the release of frozen Iranian funds.
US officials said disagreements are growing within Iran’s leadership, with one faction, led by President Masoud Pezeshkian, reportedly concerned about economic collapse and favoring an agreement with Washington, while another faction, led by Islamic Revolutionary Guard Corps commander Ahmad Vahidi, opposes concessions.
A US official said Trump had been leaning toward resuming major combat operations a week earlier but was persuaded to de-escalate for the time being. The official said continued fighting allowed Iran’s leadership to avoid confronting the damage to infrastructure and the country’s deepening economic crisis.
Despite the reduced military pressure, the US is continuing efforts to keep oil flowing through the Gulf. The official said about 8 million barrels of oil are currently leaving the Gulf each night through the southern lane of the Strait of Hormuz in coordination with the US military, with Washington seeking to increase those flows if no agreement is reached.
Vice President JD Vance said Saturday that the conflict remains unresolved.
“This thing is not over. It’s obviously not at the beginning. We’re in the middle of the game,” Vance told Fox News, saying the US was using diplomatic, economic and military tools to secure the best possible outcome for Americans.
