USA28 July, 20262 min read
Trump Officials Say Sanctions Could Hurt Iran More Than U.S. Airstrikes
This article is an automated aggregation of coverage from news outlets. Our editorials offer in-depth analysis curated by the NewsCord team.
Senior Trump officials say renewed sanctions could hurt Iran more than bombs Sanctions target Iran's energy and maritime sectors to pressure Tehran to negotiate
Sanctions as main lever
Senior Trump administration officials told Axios that the United States' economic pressure campaign against Iran may ultimately inflict greater damage than weeks of military strikes, even as Washington keeps the threat of further military action over the Islamic Republic.
The reporting says Trump paused U.S. airstrikes against Iran after 13 consecutive days of attacks, and President Donald Trump said Monday, "I have a lot of patience," while U.S. officials argue prolonged financial isolation could eventually force Tehran back to the negotiating table.
U.S. officials cited by Axios and other outlets linked the strategy to worsening economic conditions inside Iran, including gasoline shortages, strain on government finances, and difficulty paying members of Iran's military and allied militant groups.
One senior administration official summarized the administration’s logic to Axios: "The Iranians want to stop being bombed and they want money," but "that's almost in reverse order. They really want the money first."
Diplomacy during the pause
While the administration emphasized sanctions and military options, the reporting also described ongoing diplomatic contacts through mediators including Oman, Qatar and Pakistan as Washington tries to convert the pause in fighting into a more durable ceasefire. White House press secretary Karoline Leavitt told Axios that the president "prefers a diplomatic solution, but he continues to retain all options," adding that sanctions combined with recent military strikes have increased pressure on Tehran to negotiate.
The accounts say Iran quickly denied that it sought to reopen negotiations over a potential agreement, even as U.S. officials continued to discuss a proposal that would give Iran and Oman a greater role in managing commercial traffic through the Strait of Hormuz. In the same reporting, U.S. intelligence assessments and open-source reporting were cited for signs that Iran’s economic stress is deepening despite oil wealth, including concerns about potential bank runs and increasing difficulty financing regional commitments.
Pressure, leverage, and risk
The reporting frames sanctions as a leverage tool aimed at Iran’s ability to sustain its regional posture, with U.S. officials arguing that economic pressure is unlikely to produce immediate results compared with military action but could have longer-term effects. U.S. officials cited by multiple outlets said intelligence indicates Iranian authorities are struggling to finance their regional network because of mounting financial restrictions imposed by the Treasury Department, and one official warned, "They're more scared of Treasury than the War Department."
“They're more scared of Treasury than the War Department.”
The accounts also describe a broader maximum-pressure effort, saying the United States has sanctioned more than 1,000 individuals, vessels and aircraft linked to Iran’s oil trade, shadow banking channels, weapons procurement and shipping networks. At the same time, the reporting includes skepticism from analysts, including Brett Erickson of Obsidian Risk Advisers, who wrote on X that "Economic warfare is a fundamentally broken approach to the Iran War," even as the administration insists the pressure campaign is working.