US officials say sanctions may hurt Iran more than strikes: Report

US officials are of the view that pressuring Tehran with sanctions would damage the country more than bombs, Axios reported Tuesday, claiming there is a deepening economic crisis inside Iran. "The Iranians want to stop being bombed and they want money," a senior US official said. "But that's almost in reverse order. They really want the money first." US President Donald Trump said Monday that Iran had requested talks on a deal after he paused US strikes over the weekend following 13 days of attacks. Iran denied the claim. Mediators from Oman, Qatar and Pakistan are trying to turn the pause into a lasting ceasefire. One proposal would give Iran and Oman a role in managing Strait of Hormuz traffic, modeled on the Malacca and Singapore straits framework, the report said. "Some of the Iranians want this. Others don't. That's part of the issue," the senior administration official said. Iran is seeking guarantees against future US attacks, access to frozen assets and sanctions relief. Trump opposes rewarding Tehran and insists it surrender its remaining nuclear material, according to the report. A US official said sanctions and the naval blockade will take longer than bombing to pressure Iran, potentially increasing Republican political risks over the war and higher gas prices. Access to funds top priority "Intelligence is picking up that the Iranians are complaining they can't pay their fighters," a US official said. "Why? Because of the financial pressures. Because of Treasury. Because of what (Treasury Secretary) Scott Bessent is doing." "They're in danger of runs on banks. There are gasoline shortages in this giant oil-rich country," the official added. "They're more scared of Treasury than the War Department." Officials said Iran previously told US negotiators Jared Kushner and Steve Witkoff that gaining access to money was a top priority. "They're begging Steve and Jared for cash. They're desperate for it," one official claimed. The Trump administration has sanctioned more than 1,000 people, vessels and aircraft under its renewed maximum-pressure campaign targeting Iran's oil trade, financial networks, weapons procurement and shipping. Critics reportedly argued neither military strikes nor economic pressure is likely to force Iran to accept Trump's demands. Analyst Brett Erickson noted Iran earned an estimated $23 billion in oil revenue in the first half of the year, above budget projections. "Economic warfare is a fundamentally broken approach to the Iran War," Erickson wrote Monday on the US social media company X. Trump prefers diplomacy White House press secretary Karoline Leavitt said Trump "prefers a diplomatic solution, but he continues to retain all options if Iran continues terrorist activities in the Strait of Hormuz or against allies." "Combined with successful sanctions that have crippled Iran's economy and 13 straight days of strikes against military targets in response to their repeated aggression, it would be wise for Iran to work toward a negotiated deal," she said. "Otherwise, they know what will happen." Another US official said: "The president has a win-win optionality. The US is capable of prosecuting this militarily to the fullest extent. And the US is capable to exerting economic sanctions that cripple Iran."