Washington: US officials are asserting that imposing economic sanctions on Iran could result in more enduring consequences compared to military interventions, according to a report by Axios. This perspective is based on what has been described as a worsening economic crisis within Iran.
According to Axios, the US administration believes that the financial strain induced by sanctions is creating more substantial challenges for Iran. A senior US official mentioned, "The Iranians want to stop being bombed and they want money," emphasizing that financial relief is Iran's primary concern.
Recent developments have seen US President Donald Trump claim that Iran is seeking to negotiate a deal following his decision to halt US military strikes, although Tehran has refuted this assertion. Efforts by mediators from Oman, Qatar, and Pakistan are focused on converting this pause into a lasting ceasefire. One of the proposals under consideration involves granting Iran and Oman a role in managing the Strait of Hormuz, inspired by the management of the Straits of Malacca and Singapore.
Further insights from Axios reveal that Iran is looking for assurances against future US attacks, access to frozen assets, and relief from sanctions. However, President Trump remains firm against offering concessions unless Tehran agrees to relinquish its remaining nuclear materials.
A US official conveyed to Axios that while sanctions and a potential naval blockade may take longer to exert pressure on Iran compared to military actions, they could ultimately be more successful. This approach, however, carries political risks for Republicans and could lead to increased fuel prices.
The financial challenges facing Iran have been underscored by intelligence reports indicating complaints from Iranian forces about unpaid wages due to financial restrictions. The US Treasury, under Secretary Scott Bessent, has been particularly effective in applying this economic pressure.
In communications with US negotiators Steve Witkoff and Jared Kushner, Iranian representatives have prioritized gaining access to frozen funds. "They're begging Steve and Jared for cash. They're desperate for it," an official disclosed.
The Trump administration's "maximum pressure" campaign has targeted over 1,000 entities linked to Iran's oil exports and financial networks. Critics of this strategy argue that neither military nor economic pressure will compel Iran to meet Trump's demands, with analyst Brett Erickson labeling economic warfare as a flawed approach.
White House Press Secretary Karoline Leavitt stated that while President Trump favors a diplomatic resolution, all options remain on the table should Iran persist with hostile activities. The administration stands ready to pursue either military or economic routes to address the situation.