Trump turns to a dual economic and military approach in latest attempt to squeeze Iran

WASHINGTON (AP) — Confronted by an intransigent Iranian government that has refused to back down in the face of a massive military campaign, President Donald Trump appears to have settled on a dual-prong approach that combines economic pressure with the potential of a devastating escalation in force.

Having launched “Operation Economic Outcast” just last week to try to isolate Iran from its remaining global trade partners, the Trump administration also resumed strikes in recent days, prompting Iranian retaliation that has renewed concerns of an all-out regional war.

However, the combination of already intense sanctions on Iran and an off-and-on bombing campaign since the war began more than six months ago has not bowed the Iranian leadership and has left the administration struggling to find a way to wind down the conflict. Tehran has dug in its heels — to Trump’s frustration — as energy prices rise, the global economy roils and poll numbers on the administration's handling of the war dip ahead of November’s midterm congressional elections.

Trump said Wednesday that he didn't think the conflict would last “much longer,” but he again shrugged off suggestions that its unpopularity and high gasoline prices resulting from Iran's chokehold on the Strait of Hormuz would affect the elections for Republicans.

“It doesn’t matter. And I’m not affected by the election,” he told reporters. "I’m not running. But my party is running, and I’m going to help my party. But I think my party respects the fact that we’re not allowing Iran to have a nuclear weapon.”

A regional diplomat briefed on the matter described the current impasse between Tehran and Washington as reflective of both countries' domestic priorities: the midterm elections for Trump and Republicans and the internal crises within Iran.

Domestic issues are critical reasons why neither side is willing to blink first, said the diplomat, who spoke on condition of anonymity to discuss sensitive negotiations.

The diplomat said negotiations, including those between Iran and Oman or even Iran and the U.S., will not go anywhere without addressing the initial catalyst of war: Israel. And the diplomat was skeptical of the Trump administration's new sanctions plan, saying the threats require more explanation than what the U.S. has provided so far.

The administration's new push for Iran's economic isolation was announced with great fanfare last week and a dire warning for all remaining countries to cut off financial and trade ties with Iran or face U.S. retaliation — but the campaign so far has fallen flat.

Just one branch of an Egyptian bank in the United Arab Emirates has been targeted so far. For actual sanctions to bite, experts agree that they must apply to Iran’s main trading partners: mainly China but also India and Russia. But Trump is loath to target China especially as he is preparing to host President Xi Jinping later this month.

Trump also insists that the U.S. has control over the Strait of Hormuz, where one-fifth of the world’s oil transited before the war began. The strategic waterway has been a key pressure point for Iran, and reopening it fully has become one of the prime goals for the U.S. administration.

Ship traffic through the strait is well below pre-war levels due to the risk of attack if vessels don’t comply with an Iranian vetting regime near its coastline, which is in sharp contrast to the unhindered navigation before the war. There were 102 transits last week and 126 the week before, according to shipping data company Lloyd’s List Intelligence, compared with 130 or more per day before the war.

“As President Trump said, the strait is open and all mines have been cleared,” White House spokeswoman Anna Kelly said Thursday. “The naval blockade remains in full force and effect, and Operation Economic Outcast is underway to sever every remaining economic lifeline sustaining the regime.”

The White House has repeatedly touted the economic impact that the sanctions have had on Iran, citing its rampant inflation and the massive loss in the value of its currency. U.S. officials have described Iran's financial system as “one big house of cards.”

Going forward, Secretary of State Marco Rubio said “the price” Iran will pay will be primarily economic, “but we reserve the right ... to take military action when necessary — not just to protect ourselves but to prevent them from being able to threaten others as well.”

“They’re going to continue to feel the squeeze,” he told Fox News host Brian Kilmeade in an interview that aired Wednesday.

Treasury Secretary Scott Bessent this week likened Iran to a snake that has been decapitated but whose body is still writhing.

“We are burying the head of the Iranian snake,” he said Tuesday. “The snake doesn’t know it’s dead yet, but it will stop wiggling when the sun goes down. And so the Iranian regime — they are in demise, and they will figure it out.”

Complicating things for the U.S., Iran’s leadership has shown signs of divisions between moderates more open to a diplomatic solution and hardliners who want to press ahead with a more confrontational approach.

President Masoud Pezeshkian is one of the most prominent voices still calling for a negotiated solution. But the hardliners appear to have gained the upper hand, and Iran shows no sign of backing down. Tehran continues to lash out at U.S. interests and allies around the region in response to military strikes.

“This kind of a hybrid approach — the combination of military force, blockade and economic pressure — that is the only option that seems to be available to the United States at this moment,” said Hamidreza Azizi, consulting senior Iran analyst for the International Crisis Group.

Still, he said, “it’s been for a long time, but now maybe more than ever, a battle of endurance between the two sides.”

Amr Hamzawy, director of the Middle East program at the Carnegie Endowment for International Peace, pointed to two main reasons for the deteriorating situation.

“One, none of the two parties is satisfied with the outcome — meaning that the current situation does not serve U.S. interests well, and it does not serve Iranian interests well,” Hamzawy said.

The other reason is how leaders from both sides are perceived at home.

“The Trump administration is afraid of being portrayed in the U.S. as an administration that failed to end a military campaign successfully, and that’s going to impact the midterm elections," he said. “And the Iranians, especially the Revolutionary Guard, are quite afraid of appearing as if they are submitting to U.S. sanctions with no actions on their side, which might hurt them domestically.”

Magdy reported from Cairo. Associated Press writers Will Weissert in Washington and David McHugh in Frankfurt, Germany, contributed to this report.

President Donald Trump speaks during an event with Republican lawmakers in the Rose Garden of the White House, Wednesday, Sept. 2, 2026, in Washington. (AP Photo/Alex Brandon)

President Donald Trump attends an event with Republican lawmakers in the Rose Garden of the White House, Wednesday, Sept. 2, 2026, in Washington. (AP Photo/Alex Brandon)

Former Secretary of State Hillary Clinton, first lady Jill Biden, Oprah Winfrey and a slew of celebrities, writers and social justice activists are lauding Gloria Steinem as a revolutionary and inspiring figure.

The celebrated author and activist, who became one of the most visible symbols and potent voices of the U.S. women’s movement, died Wednesday at her home in New York City. She was 92.

“She pushed open doors not just for herself, but for literally millions of women behind her. She wasn’t going to be an astronaut, but my goodness, she made it possible for Sally Ride to be an astronaut. She wasn’t going to play college sports, but she stood behind the women in Congress who passed Title IX and opened up opportunities in sports and academics for girls. And she wasn’t on the Supreme Court when Roe v. Wade was decided, but her voice and her activism was behind that advancement for women’s rights. Gloria Steinem was, at heart, an optimist. Her activism was rooted in optimism, and that’s a moral choice she made every day. Even though we’ve faced setbacks to women’s full participation and equality in America and around the world, I want Gloria’s voice to remain in our heads.” — the former secretary of state, on social media.

“Every woman who has ever walked into a room knowing she belongs there; every woman who has demanded equal pay, equal respect, ownership of her own body, and the right to make her own choices; every girl who has grown up assuming that her dreams are hers to pursue — whether she knows Gloria Steinem’s name or not — is living, in some measure, inside the progress Gloria helped create. She leaves us with more freedom than she inherited and with the responsibility to keep widening that freedom for the women and girls who come next.” — the media mogul and television producer, on social media.

“Gloria Steinem understood that women’s equality begins with the freedom to make decisions about our own bodies, health, and futures. For decades, she fought to make that freedom real for generations of women and girls. She spoke up when it was difficult, listened to those whose voices too often went unheard, and never stopped pushing our country forward. Joe and I are holding Gloria’s loved ones in our hearts today. Her voice changed our country, and her courage will continue to inspire us to keep fighting for the freedoms she spent her life defending.” — the former first lady, on social media.

“Generational change doesn’t happen by accident or fate — it takes leaders like Gloria Steinem who work hand in hand with so many others to build a lasting movement. The decades of energy, brilliance, and advocacy she devoted to women’s rights helped so many of us see that we belonged at the tables where decisions are made. … What a light she was for me and so many others. What a debt we owe her.” — the philanthropist and businesswoman, on social media.

“The time I spent studying Gloria Steinem in order to play her was one of the most edifying of my life. Everything I watched, everything I read, everything I observed about her gave me a template for how I wanted to behave.” — the actor, who played Steinem in the 2020 film “The Glorias,” on Instagram.

“Privately, she was even better than you would imagine — spending Thanksgiving with our family, introducing me to one of my best friends (forever the champion of female friendship), loving our children with her whole heart, counseling me during hard times, and giving extraordinary advice and perspective with a cup of tea and an unrivaled cheekiness and wit.” — Duchess of Sussex, on Instagram.

“Gloria was one of a kind. Genuine, generous, curious, thoughtful. She lived a staggering life and her passing is a staggering loss tempered only by the ferocity of her legacy.” — the writer, commenting on Instagram.

“Everything Gloria did was rooted in kindness. It flowed through her political activism.” — her friend and fellow activist, to The Associated Press.

“Gloria, you changed my life. You seeded a fire in me that would result in my own activism. I am forever grateful to have learned from what you offered the world.” — the author and social justice activist, commenting on Instagram.

“An unstoppable visionary who demanded an equal role for females in a male dominated world and worked tirelessly, for decades, to bring that change about. The greatest irony was how many women she had to battle as they cowered behind their male owners. But battle she did. Equal rights! Freedom to choose! Access to political power! Equal pay for equal effort.” — the actor and playwright, on social media.

“I have done what I wanted to do with my life. That would not have been possible without Steinem and the scores of other feminists who it is no exaggeration to say radically reshaped America and the world.” — the author and feminist, in her Substack newsletter.

FILE - Feminist Gloria Steinem speaks at a rally organized by Women's March NYC in New York on Jan. 19, 2019. (AP Photo/Kathy Willens, File)