Trump Signals Economic Squeeze on Iran as Diplomatic Talks Stall

The Trump administration is signaling it favors economic pressure over rapid diplomacy in its standoff with Iran, highlighting a naval blockade of the Strait of Hormuz and previewing additional sanctions.

President Donald Trump, who has repeatedly floated tight deadlines for a settlement, told Fox News on Monday he is "not in a hurry" to resolve the conflict. A 60-day memorandum of understanding between Washington and Tehran meant to lay groundwork for ending the war has expired, with no replacement agreement in place.

Treasury Secretary Scott Bessent told Newsmax last week that Trump was prepared to order sanctions that would form a "one-two punch" with the blockade, saying, "We are going to apply measures like have never been seen in the history of economic isolation on a country." The Treasury Department declined to comment Tuesday.

Trump has said the Strait of Hormuz is "open and operating," though traffic has fallen sharply. Energy Secretary Chris Wright said 30 vessels transited the strait clandestinely on Saturday, while data firm Kpler counted 28 vessels over a three-day span — down from more than 100 a day before the conflict.

Meanwhile, Trump appeared to step back from claims of ongoing negotiations, writing on social media Tuesday that there were "no talks or conversations going on" with Iran, even as Iranian officials have long denied talks were happening.

Any escalation would target an Iranian economy already suffering roughly 65% inflation over the past year, according to Iran's central bank. Mohammad Ghalibaf, speaker of Iran's parliament, wrote on X that Bessent was "way out of his league."

Experts said additional pressure, including on Chinese banks that facilitate Iranian oil imports, is under internal debate, with some officials warning of economic blowback from Beijing. Analysts cautioned that even severe economic pain may not change Tehran's posture, noting Iran has developed strategies, including passing costs on to its population through inflation, to absorb sanctions without regime collapse.