President Donald Trump stated on August 9, 2026, that he is moving away from military threats towards applying economic pressure on Iran to resolve ongoing conflicts. In a phone call with Axios, Trump mentioned, "We are low-keying it" and indicated that the U.S. is observing Iran's economic difficulties, including high inflation and financial constraints on its military.
Trump attributed Iran's economic challenges to the U.S. naval blockade in the Strait of Hormuz, claiming that the Iranian regime is in a precarious financial situation. He also noted that the public is experiencing less financial strain due to a decrease in crude oil prices, which have fallen to over $75 per barrel from a peak of $118 earlier in the year.
Despite criticism regarding his approach to the conflict, Trump expressed confidence in his strategy, likening it to a chess game. A week prior, he had considered military action against Tehran but opted for diplomatic negotiations instead, claiming that a peace deal was close. Negotiations are currently on hold.
Iran recently issued a list of demands for allowing shipping through the Strait of Hormuz, which includes ending U.S. threats, lifting sanctions, and unfreezing Iranian assets. Iran is also negotiating with Oman to reopen the strait to international traffic, proposing a shipping toll that could generate significant revenue, which the U.S. opposes.