Iran’s Economic Crisis Gives US Leverage, Trump Says

United States President Donald Trump has said Iran’s worsening economic situation is giving Washington room to maintain pressure on Tehran, as the two countries remain at odds over negotiations and the conflict.

Iran is facing “huge inflation” and severe financial difficulties, according to Trump, who described the country as being “in very bad shape” economically.

“We are only semi-negotiating with them. We are just watching Iran with its huge inflation and the fact they have no money,” he told Axios on Sunday, adding that Washington was deliberately keeping a low profile in its dealings with Tehran.

Describing the back-and-forth as “like a chess game”, Trump expressed confidence that an agreement over the Strait of Hormuz would eventually be reached.

An agreement governing traffic in the strategic waterway, negotiated among Iran, Oman and the United States, remained pending.

Under the proposed deal, Iran would be given partial control over traffic in the strait, something it did not have before the war began.

The remarks came in contrast to a statement made earlier the same day by Iranian Foreign Minister Abbas Araghchi, who said Iran and the United States were not engaged in talks.

While Trump did not directly address Araghchi’s comments, he maintained that a resolution was within reach.

Oil prices have also fallen to slightly above $75 a barrel, easing the impact of the conflict on American consumers and giving Washington more room to sustain pressure on Tehran, Trump said.

The comments came as United States Chairman of the Joint Chiefs of Staff General Dan Caine privately told senior advisers that Washington needs to find an exit from the conflict.

Meanwhile, Pentagon officials have asked defence companies to ramp up production as US weapons stockpiles run low.