Archive · 13 Aug 2026
Trump Bets on Economic Pressure, 'Low-Keying It' Against Iran
The president of the United States, Donald Trump, decided to try to handle the fight with Iran without fighting.
He told the news site Axios that the United States is 'low-keying it.'
That means he wants to use money problems, not bombs, to pressure Iran.
He says Iran is 'totally broke' and has very high inflation, which is when prices go up very fast.
He even said the United States controls an important waterway called the Strait of Hormuz.
The American government is also putting new sanctions, or rules that limit trade, on Iran's military group called the IRGC.
Iran's spokesman, Esmaeil Baqaei, says Iran has lived through sanctions for many years and calls the American move a retreat.
Some experts say Iran's economy is in bad shape, but they are not sure Iran's leaders care very much.
It is like a game of chess, and nobody knows yet who will win.
Trump told Axios the United States is 'low-keying it' in the war against Iran, betting on economic pressure rather than diplomacy or new strikes.
Trump claims Iran is 'totally broke' with inflation over 300 percent and says the US has 'total control' of the Strait of Hormuz.
Washington announced new measures targeting Iran's Islamic Revolutionary Guard Corps (IRGC) at the end of July.
The Wall Street Journal reports Trump's advisors have shown him sanctions-impact data, and he is reportedly considering tightening sanctions.
Iran's foreign ministry spokesman Esmaeil Baqaei dismissed the sanctions push as a 'retreat,' saying Iran has withstood US sanctions for decades.
- Who
- President Donald Trump, Iran's foreign ministry spokesman Esmaeil Baqaei, and Brookings Institution expert Michael O'Hanlon.
- What
- The United States is shifting its approach to the war with Iran toward economic pressure and sanctions instead of diplomacy or new strikes.
- When
- In recent days — Trump spoke to Axios on Sunday, commented Monday in the Oval Office, posted on Truth Social on Wednesday, and new IRGC measures were announced at the end of July; the war began more than five months ago.
- Where
- The United States and Iran, with a focus on the Strait of Hormuz.
- Why
- Trump says economic pressure works because Iran is broke and no urgent military action is needed; Iran calls the sanctions push a retreat.
Trump administration
Iran and critics
Do sanctions work on Iran?
Trump administration
Iran is 'totally broke,' can't pay its soldiers, and faces inflation above 300 percent, so economic pressure is working.
Iran and critics
Iran has withstood US sanctions for decades; the new push is a 'retreat' that shows Washington's diplomacy has failed.
Why the strategy shift?
Trump administration
Low-keying it is a deliberate chess-like strategy that keeps military strikes on the table while avoiding escalation.
Iran and critics
Critics say the shift reveals limited military options, since press reports say US munitions stockpiles are heavily depleted.
Control of the Strait of Hormuz
Trump administration
Trump says the US has 'total control' of the strait, so there is no urgency to act.
Iran and critics
In reality, Tehran is locking down the strategic passage while Washington imposes its own blockade on Iranian ports.
- President
- Donald Trump
- Strategy
- Economic pressure through sanctions; 'low-keying it'
- Claimed Iran inflation
- Over 300 percent (per Trump)
- Sanctions target
- Islamic Revolutionary Guard Corps (IRGC)
- Announcement
- New IRGC measures announced at end of July
- Conflict so far
- War launched more than five months ago
- Flashpoint
- Strait of Hormuz
- Iran's response
- Spokesman Esmaeil Baqaei called the sanctions push a 'retreat'