President Donald Trump is increasing pressure on Iran from two directions at once. The United States is using new economic sanctions to cut Iran off from global trade while keeping military force ready if Tehran does not change course. The strategy comes after months of conflict, failed diplomatic efforts and growing concern about the Strait of Hormuz. It also shows how the Trump administration is trying to weaken Iran without relying only on another major military campaign.
Washington Opens a Second Front
The United States has already used military force against Iran, but the Trump administration is now putting much more attention on economic pressure.
The new approach combines the threat of more military action with an effort to make it harder for Iran to sell oil, move money and conduct business around the world.
The administration launched Operation Economic Outcast in August. The campaign is designed to isolate Iran financially and pressure countries, banks and companies that continue doing business with Tehran.
Treasury Secretary Scott Bessent described the goal in strong terms when the operation was announced.
“Our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone,” Bessent said.
The Treasury Department also announced sanctions against dozens of people, companies and vessels accused of helping Iran generate oil revenue, obtain technology or avoid existing restrictions.
Military Force Is Still on the Table
Economic pressure does not mean the military campaign has ended.
The United States recently resumed strikes against Iranian targets, and Iran responded with attacks of its own. That exchange has renewed fears that fighting could again spread across the Middle East.
Secretary of State Marco Rubio said the administration expects economic measures to become one of its main tools against Iran. But he made clear that Washington has not ruled out further attacks.
Rubio said Iran will continue to pay an economic “price,” while the United States reserves the right to use military force when needed.
“They’re going to continue to feel the squeeze,” Rubio said.
The strategy gives Trump two ways to increase pressure. Washington can tighten Iran’s access to money and trade while maintaining the ability to strike military targets if the administration believes Iran poses a threat.
Iran’s Economy Becomes a Battlefield
Iran has already spent years under U.S. sanctions, and its economy has struggled with inflation and a weak currency.
Operation Economic Outcast is designed to go further by targeting not only Iran but also businesses and financial institutions outside the country that help Tehran.
These are known as secondary sanctions.
They can force foreign banks and companies to make a difficult choice: continue doing business with Iran or risk losing access to the U.S. financial system.
Bessent has said the administration intends to keep increasing that pressure.
The Treasury secretary has compared the economic campaign to the military pressure Iran has already faced, arguing that America’s financial power can be used alongside its armed forces.
The administration hopes this will leave Tehran with fewer ways to fund its government and military operations.
China Could Decide How Far Sanctions Go
One of the biggest questions is China.
China has been an important buyer of Iranian oil, making it difficult for Washington to completely isolate Tehran from the global economy.
Going too far against Chinese banks or businesses could also create new problems between Washington and Beijing.
That leaves the Trump administration with a difficult balance. For economic pressure to work at its strongest level, the United States may need cooperation from countries that still have major economic relationships with Iran.
Without that cooperation, Tehran could continue finding ways to sell oil and move money despite U.S. sanctions.
At the same time, aggressively punishing major Chinese companies or financial institutions could create a much wider economic conflict.
The Strait of Hormuz Remains at the Center
The Strait of Hormuz continues to be one of the most important parts of the conflict.
The narrow waterway connects the Persian Gulf with global shipping routes and is one of the world’s most important passages for oil and gas.
Traffic through the strait has fallen sharply during the conflict as military action, Iranian threats and inspections have made shipping more dangerous.
That means the dispute affects far more than Iran and the United States.
Problems in the Strait of Hormuz can reduce global energy supplies, push oil prices higher and increase costs for businesses and consumers around the world.
The United States has maintained a naval presence in the region as part of its effort to keep pressure on Iran and protect shipping.
White House spokeswoman Anna Kelly said the administration intends to continue both parts of its strategy.
“The naval blockade remains in full force and effect,” Kelly said, while Operation Economic Outcast works to cut Iran’s remaining economic support.
Tehran Shows Few Signs of Giving In
The biggest problem for Trump is that Iran has not responded to military and economic pressure in the way Washington hoped.
Iranian leaders have continued resisting U.S. demands even after months of fighting and severe economic damage.
There are also divisions inside Iran over what should happen next. Some officials have shown greater interest in negotiations, while hard-line leaders have pushed for continued resistance.
That makes it difficult to know whether additional economic pressure will bring Iran back to serious negotiations or simply deepen the conflict.
The Trump administration argues that Iran must not be allowed to obtain a nuclear weapon and says continued pressure is necessary to force Tehran to change its behavior.
Iran has repeatedly said its nuclear program is intended for peaceful purposes.
Both Countries Face Pressure at Home
The conflict is also creating political problems far from the battlefield.
In the United States, higher energy prices and concerns about the cost of the conflict could become important issues as the country moves closer to the midterm elections.
Iran faces even greater economic problems at home. Sanctions, inflation, military damage and restrictions on trade have placed additional pressure on ordinary Iranians as well as the government.
Trump is betting that combining these pressures will eventually make continued resistance too costly for Tehran.
But economic sanctions have a complicated history. They can badly damage a country’s economy without necessarily forcing its government to change its most important policies.
That leaves Washington facing a difficult question: how much pressure will be enough?
A Strategy Built on Pressure and Uncertainty
Trump’s latest Iran strategy is no longer based mainly on bombs or sanctions. It is built around using both.
The United States is trying to weaken Iran’s economy, isolate the country from its remaining trading partners and keep military force ready at the same time. The goal is to convince Tehran that continued resistance will carry an increasingly high price.
Whether that strategy produces negotiations or another round of fighting remains uncertain. Iran has survived years of sanctions and months of military pressure without fully accepting Washington’s demands. The next test will be whether combining America’s economic and military power can produce the result that either approach has struggled to achieve on its own.
