Kathmandu— U.S. President Donald Trump has stated that Washington is now prioritizing economic pressure over further military strikes in its approach to Iran, following months of escalating tensions and conflict. In an interview on Sunday, Trump described a more cautious strategy focused on sanctions and a naval blockade implemented in April, aiming to cripple Iran’s economy while simultaneously engaging in limited negotiations with Tehran. He cited the financial difficulties facing Iran, including high inflation and challenges paying its military forces, as evidence of the effectiveness of this approach.

Economic Warfare Strategy

Trump indicated that the U.S. is actively leveraging economic tools to compel Iran towards a deal, describing the situation as “like a chess game.” He highlighted the positive impact of falling oil prices – currently just above $75 per barrel – on American consumers, suggesting this mitigates any domestic repercussions from the economic pressure being applied to Iran. The president stated that Iran is in “very bad shape” financially and believes these conditions will ultimately lead to a favorable outcome.

Strait of Hormuz Negotiations

Talks mediated by Oman regarding the reopening of the Strait of Hormuz to shipping are reportedly nearing completion, with both sides close to agreeing on coordinates for a new shipping route. Iran’s foreign ministry indicated earlier this month that negotiations had reached their “final” stages. However, Tehran has stipulated that it will not fully reopen the waterway until the U.S. alters its behavior, specifically demanding an end to the naval blockade, cessation of military actions, and compensation for war damages.

Regional Tensions Remain High

A previous ceasefire agreement reached in June collapsed due to disagreements over control of the Strait of Hormuz, leading to a resumption of hostilities. Iran has continued intermittent attacks on U.S. bases located in Kuwait, Bahrain, and Jordan. Simultaneously, Yemen’s Houthi rebels – aligned with Tehran – initiated their own naval blockade targeting Saudi Arabia last month. Reports also suggest disagreements between Washington and Israel regarding the pace of de-escalation across multiple fronts, including Gaza and Lebanon.

While talks continue regarding the Strait of Hormuz, Iran maintains its conditions for fully reopening the waterway, and regional tensions remain elevated with ongoing attacks and blockades.

(With inputs from Al Jazeera)

Originally published on abcnews.com.np.