Summary

Instead, the Trump administration is preparing to rely more heavily on economic pressure, including a new sanctions campaign announced by Treasury Secretary Scott Bessent, while maintaining a naval blockade around Iran. Also Read: United States pauses visa appointments worldwide until further notice The shift comes as Washington argues that its military operations have reduced Iran's ability to use the Strait of Hormuz as leverage over global energy supplies. The US Navy has cleared mines from the main shipping lane, while increasing numbers of tankers have been moving through the strait's southern channel. According to Axios, Rubio conveyed the administration's current strategy during calls with foreign counterparts. The approach involves avoiding new military action against Iran for now, tightening economic pressure through sanctions and the naval blockade, and moving as much oil as possible through the Strait of Hormuz and into global markets. A US official said Rubio did not rule out military strikes if Iran attacks first, but made clear that Washington is not preparing to return to major combat operations at this stage. Another US official said the removal of mines from the Strait of Hormuz marked a turning point in the conflict by weakening one of Iran's principal sources of leverage. "The Iranians have lost control over the strait. Now the U.S. controls it," the official said, according to Axios. Also Read: Poll shows Trump’s Iran war loses support from Americans as anger grows US steps up economic pressureThe latest shift follows the Trump administration's new sanctions push against Iran. Bessent announced the campaign on Monday, targeting countries and entities that continue doing business with Tehran. Axios reported that the expanded sanctions are expected to remain the main US tool against Iran at least until after the US midterm elections, although a fresh military campaign could again be considered later. The Treasury Department has broadened the scope of secondary sanctions to areas including digital assets, technology, gold, aviation and shipping. It has also sanctioned dozens of entities, individuals and vessels linked to activities including oil smuggling and the procurement of nuclear and missile technology. The US blockade is also squeezing Iran's oil revenues. US officials told Axios that almost no tankers have been seen at Kharg Island, Iran's main oil export hub, over the past two weeks. "The Iranian economy is in free fall and the regime's military has been decimated," State Department spokesman Tommy Pigott told Axios, "and we are cutting off every financial lifeline the regime has remaining." He added, "The President has been clear that Iran cannot have a nuclear weapon, and that he will use the tools necessary to ensure that objective is accomplished." Hormuz becomes a key pressure pointWashington's strategy is closely tied to the Strait of Hormuz, through which a large share of the world's oil supplies traditionally moves. The US military has been operating a shipping corridor through the southern part of the strait, allowing tankers to move oil despite the wider conflict. Axios reported last week that 15 to 20 tankers had been moving through the channel each night, carrying around 10 million barrels of oil a day, roughly half the pre-war volume. On Tuesday, President Donald Trump said the US Navy had cleared all mines from the main international shipping lane. US officials confirmed that the Navy had cleared the Traffic Separation Scheme, allowing ships to move in both directions through the central lane. The developments have further weakened Iran's ability to use the waterway as a bargaining chip, according to US officials. They also raise questions over the relevance of a separate arrangement being discussed between Iran and Oman to restore safe navigation through the strait. Pakistan steps into diplomacyThe diplomatic track remains active despite Washington's decision to maintain economic pressure. Pakistan's army chief, Field Marshal Asim Munir, travelled to Tehran on Sunday for talks with Iranian leaders. Pakistan has acted as a mediator between Washington and Tehran since the conflict began. According to Saudi-affiliated broadcaster Al Arabiya, Munir spoke with Trump before travelling to Iran and presented a possible new proposal to the Iranian side. The White House did not deny that Trump had spoken with Munir, but said there were no current or scheduled negotiations between the US and Iran. US officials told Axios that the improved flow of oil through the Strait of Hormuz has reduced Iran's leverage in any future negotiations. "Right now we are not negotiating with Iran. We are squeezing them. The pressure could drive the Iranians back to the table," a US official said. What happens nextThe Trump administration's current strategy therefore combines economic pressure with a military posture designed to deter Iran from renewed attacks, rather than immediately expanding the conflict. The possibility of military action remains open if Tehran attacks US forces, commercial shipping or allies. Axios reported that Washington's policy could remain focused on sanctions and economic pressure until after the midterm elections, when a renewed military campaign could again be considered. Meanwhile, White House envoys Steve Witkoff and Jared Kushner, who have been involved in efforts to negotiate with Iran, are expected to visit US Central Command on Wednesday for briefings on developments, according to a source familiar with the plans. The shift marks a notable change in emphasis for the Trump administration: rather than immediately escalating airstrikes, Washington is betting that the combination of the naval blockade, restored oil traffic through Hormuz and tougher sanctions can force Tehran back to the negotiating table. (You can now subscribe to our Economic Times WhatsApp channel) (You can now subscribe to our Economic Times WhatsApp channel) Explore More Stories