WASHINGTON (AP) — President Donald Trump claims his confrontation with Iran is a continuation after decades of economic pressure failed to curb its nuclear ambitions. Trump’s administration believes renewing financial pressure will end this conflict. Recent military actions target Iran’s economy, hoping to compel its leaders to abandon nuclear pursuits and reopen the Strait of Hormuz for oil and gas shipments.

Trump announced a demand for US compensation in potential peace talks, as Iran seeks the same. He argues that Iran teeters on financial collapse, despite enduring decades of sanctions, which typically aim for long-term effects rather than immediate conflict resolution. This shift occurs amidst reduced US weapon stockpiles and stalled negotiations. Trump remains steadfast, believing financial pressure will yield a breakthrough.

They can make trouble, but they’re broke, Trump told reporters. Iran is broke, totally broke. And, they’re not paying their soldiers. They have inflation of 300%.

While inflation in Iran is significant, Trump’s numbers exceed typical estimates. Prolonged conflict risks inflation elsewhere, including the US, where the war’s effects and rising fuel prices are unpopular. Crude oil prices rose as Trump’s remarks signaled restricted Strait of Hormuz access, continually affecting global energy supplies. The conflict largely closed the strait, crucial for around 20% of global oil before the hostilities.

Iran publicly defies the threat of more sanctions. Esmail Baghaei, Iran’s Foreign Ministry spokesperson, criticized Washington’s reliance on sanctions when diplomatic efforts falter. He suggests that persisting with this strategy could hinder America’s chances of exiting this crisis gracefully.

The White House terms this effort Operation Economic Fury. Although the president hasn’t specified further financial measures, ‘Operation Economic Fury’ began on April 16. Treasury Secretary Scott Bessent equates it to a bombing campaign, targeting nations engaging with Iran’s economy.

Sanction Strategy Challenges

The pace and effectiveness of sanctions, described by Richard Nephew, a Columbia University research scholar, is limited. He points out Trump’s inconsistent goals, emphasizing nuclear weapon prevention, Strait control, and missile concerns. Despite extensive aerial assaults, a swift resolution remains elusive.

However, sanctions combined with a US naval blockade offer economic leverage, says Juan Zarate, former deputy national security adviser. US sanctions threaten third parties trading with Iran, affecting its economy, yet patience is required for noticeable regime behavior change.

Past and Present Economic Approaches

Trump’s focus on economic sanctions contrasts with past US presidents he criticized. Speaking in Las Vegas, Trump defended military actions launched on February 28, reiterating that past sanctions since November 1979 failed to achieve desired outcomes. He emphasized preventing Iran from obtaining nuclear weapons.

The war deeply affects Iran’s economy. The International Monetary Fund notes a 5.4% economic contraction while Iran reports 88.6% annual inflation. US policies reduced Iran’s oil exports from 1.8 million to under 500,000 barrels per day recently.

Despite the economic complexities, the US economy maintains growth amid rising inflation and borrowing costs. This has impacted Trump’s popularity and heightened disapproval of the Iran conflict.

A senior US official, speaking anonymously about strategy, said military actions impaired Iran’s energy production and shipment capabilities. The administration sees the strait blockade and sanctions as effective, anticipating further operational intensification.

Trump suggests that US citizens can better endure economic challenges compared to Iranians, who face chronic hardships. It’s not just what the military can do — we’ve got the most powerful economy in the world as well, said Defense Secretary Pete Hegseth, emphasizing the economic strategies managed by a motivated treasury secretary.

AP White House reporter Aamer Madhani contributed to this report.