Trump Shifts to Economic Pressure Strategy Against Iran, Avoiding Military Conflict
In recent weeks, the U.S. administration under President Donald Trump has shifted its approach in the conflict with Iran from military confrontation to a strategy focused on massive economic and financial pressure. Rather than pursuing a military campaign or blocking the Strait of Hormuz to stop Iranian oil shipments, Trump aims to weaken Iran through sanctions and financial restrictions, using military force only as a deterrent.
Dr. Udi Levi, former head of the Mossad's economic warfare unit and senior researcher at the Jerusalem Institute for Strategy and Security, supports this approach, stating that "you cannot defeat the Iranians militarily; only economic pressure can bring them to the negotiating table." The U.S. Treasury Department now leads the campaign against Iran's financial networks, aiming to increase the cost of every dollar Iran earns so drastically that only a fraction remains usable.
Iran has developed a sophisticated financial infrastructure, including extensive use of cryptocurrencies, to evade sanctions. The U.S. is actively targeting these channels, blacklisting shell companies and complicating Iran's money transfers. Despite these efforts, Levi notes that the campaign is slow and complicated by limited cooperation from Europe, insufficient intelligence sharing from Israel, and Iran's growing ties with Russia.
To accelerate results, the U.S. recently offered a $15 million reward for information on Iranian financial networks and assets of senior Revolutionary Guards officials. Inside Iran, the economy is described as one of survival, with leadership prioritizing public and economic systems while the general population receives only minimal benefits. The Revolutionary Guards advocate endurance, believing the U.S. will eventually relent, but economic pressures continue to mount.
Levi predicts it will take several more months to see significant outcomes. He emphasizes that targeting the private assets of Revolutionary Guards leaders could hasten Iran's economic collapse. However, this depends on the U.S. willingness to intensify sanctions and on China’s role in continuing to buy Iranian oil. Without substantial U.S. incentives to China, the current pressure campaign is likely to continue cautiously.
