Trump pivots back to sanctions for Iran as other strategies to end his war fizzle

President Donald Trump walks to board Air Force One at Morristown Airport, Sunday, Aug. 9, 2026, in Morristown, N.J. Julia Demaree Nikhinson/AP hide caption

WASHINGTON — President Donald Trump likes to say that he started his war with Iran after 50 years of economic pressure had failed to stop its nuclear weapons ambitions — but he's now betting that another financial squeeze can bring an end to that war.

The Trump administration is hoping that months of bombing have pushed Iran's economy to a breaking point that will force its leadership to cave to demands to end its nuclear program and fully reopen the Strait of Hormuz to oil and natural gas tankers.

The president on Monday said that since Iran is seeking compensation as part of any peace talks, he now intends to demand the same for the U.S. side. It's part of a larger pivot this weekend by Trump to argue that Iran is now on the cusp of financially collapsing, even though it has already endured decades of financial sanctions, which are often a longer-term strategy rather than an immediate tool of warfare that can halt a conflict.

The shift comes as U.S. stockpiles of key weapons have dwindled and as stop-start talks seem again to have stalled. But Trump insists the pressure can lead to a breakthrough.

"Yeah, they can make trouble, but they're broke," Trump told reporters. "They have no money. You know, Iran is broke, totally broke. And, they're not paying their soldiers. They have inflation of 300%."

Inflation is running high in Iran, although Trump's estimates were higher than what administration officials have been citing to reporters. But the prospect of a longer war also carries inflation risks for other nations, including the U.S. — where the war and higher gasoline prices are unpopular.

Crude oil prices climbed on Monday as investors interpreted Trump's comments as a sign that fewer ships would be traversing the Strait of Hormuz, continuing to limit global supplies of gasoline, jet fuel, natural gas and other forms of energy. The Iran war largely closed the waterway involved in shipping roughly 20% of global oil supplies before the conflict — and attempts to reopen the strait have been short-lived as it has become a source of leverage for the Iranians in negotiations.