Trump pivots to economic pressure on Iran over new strikes
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- Trump told Axios the US is "low-keying it" with Iran — relying on sanctions and a naval blockade in place since April rather than new military strikes — and said he is "only semi-negotiating" with Tehran.
- Iran's economy is in "very bad shape," Trump said, citing high inflation and difficulty paying its troops; Trump credited the US blockade with deepening the pressure.
- Oil prices have fallen to just above $75 a barrel, easing the economic impact on American consumers, according to Trump.
- Oman-mediated talks on reopening the Strait of Hormuz have reached their "final" stages, per Iran's foreign ministry, with both sides nearing agreement on coordinates for a new shipping route.
- Tehran has demanded the US lift the naval blockade, halt military actions, and pay war damages before fully reopening the strait, and has continued intermittent strikes on US bases in Kuwait, Bahrain, and Jordan.
- Washington and Israel are reportedly at odds over the pace of US efforts to wind down fighting on multiple fronts, including in Gaza and Lebanon.
Why it matters: American consumers see relief as oil holds above $75 a barrel, while the April naval blockade is squeezing Iran's ability to pay its own troops. Tehran has tied any strait reopening to US concessions — lifting the blockade, halting military actions, paying war damages — conditions that complicate a deal even as Oman-mediated talks reach their 'final' stages.
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