US Shifts Iran Policy to Economic Pressure While Saudi Nuclear Deal Awaits Congress Approval

Nearly six months into escalating tensions with Iran, the Trump administration signals it will not initiate new military strikes against the Islamic Republic for the time being, shifting focus instead to economic sanctions and securing the Strait of Hormuz. Secretary of State Marco Rubio recently informed international counterparts that the US currently does not plan fresh attacks but remains prepared to respond if Iran strikes first. This stance is expected to hold at least until after the US midterm elections in November, when military options could be reconsidered.

The administration is intensifying pressure through a dual strategy: imposing stringent sanctions targeting over 60 individuals, companies, and vessels linked to Iran’s oil revenue, nuclear technology, missile programs, and cyber activities, while also increasing oil shipments from Gulf states via the Strait of Hormuz to undermine Tehran’s leverage. President Trump announced the removal or destruction of naval mines in the strait, a move US officials describe as a turning point that has diminished Iran’s control over this strategic waterway.

Meanwhile, Iran and Oman have made progress in talks to establish a temporary navigation corridor through the Strait of Hormuz, including joint mine clearance efforts. However, Iran insists the strait will remain closed until broader issues such as sanctions and regional conflicts are resolved. Iranian officials warn that any US mine-sweeping operations would be targeted and that Iran will retaliate economically if sanctions continue.

In parallel, Pakistan’s army chief visited Tehran and reportedly proposed a new initiative to ease tensions, though the White House denies any active negotiations with Iran. US envoys Steve Witkoff and Jared Kushner are scheduled to receive briefings on the situation at US Central Command.

Adding to regional dynamics, the Trump administration has submitted a civilian nuclear cooperation agreement with Saudi Arabia to Congress. Signed on July 22, the "123 Agreement" would enable decades-long US-Saudi nuclear collaboration. However, President Trump has conditioned the deal’s advancement on Saudi Arabia joining the Abraham Accords and recognizing Israel. Riyadh, in turn, links normalization with Israel to progress on establishing a Palestinian state, complicating immediate approval prospects. The agreement has raised proliferation concerns due to its less stringent restrictions compared to previous accords and Saudi statements about pursuing nuclear weapons if Iran acquires them.