Trump prioritizes economic pressure on Iran

President Trump said on Sunday that the United States is dialing down its immediate posture toward Iran and placing greater weight on economic pressure rather than new military action in the near term.

“We are low keying it,” Trump said. He also described the US as “only semi-negotiating with them,” and said Iran is “in very bad shape” economically.

Hormuz arrangement remains pending after new demands

An agreement covering traffic through the Strait of Hormuz, negotiated among Iran, Oman and the United States, has been awaiting conclusion for several days. Mediators had expected it to be announced this week, but it has not been finalized.

Mohammad Bagher Zolghadr, who heads Iran's Supreme National Security Council, issued additional demands on Saturday. Those demands include lifting the naval blockade, withdrawing surrounding forces, and ending broader hostilities, while also calling for compensation and the release of frozen funds.

US officials cite divisions in Tehran and ongoing oil flows US officials said internal splits inside Iran are complicating efforts to reach the pending arrangement. They described competing positions among Iranian leadership over whether to accept terms that would ease pressure.

According to the officials, one faction led by President Masoud Pezeshkian supports reaching an arrangement aimed at blunting economic collapse. Another faction, led by Revolutionary Guard commander Ahmad Vahidi, opposes concessions.

Officials also said roughly 8 million barrels of oil are currently moving out of the Gulf each night through a southern lane coordinated with US forces, underscoring that maritime movements are continuing while negotiations remain unresolved.

Wednesday deadline looms for an announcement or breakdown

Mediators had expected to present the agreement publicly by Wednesday, Aug. 12, 2026. The coming deadline is being watched for either a formal announcement or a breakdown in talks.

Trump’s remarks indicate a preference for keeping the US response centered on economic leverage, even as the pending Hormuz-related arrangement remains uncertain. Whether that approach coincides with a completed deal, or a collapse of negotiations, is expected to become clearer by Aug. 12.