WSJ: US doubles down on economic pressure in Iran standoff

Senior Trump administration officials are intensifying economic pressure on Iran, making lower oil prices a key objective of the conflict and threatening unprecedented financial sanctions aimed at forcing Tehran to reopen the Strait of Hormuz.

The standoff is increasingly centred on which side will give way first under mounting economic pressure. Washington is relying on sanctions and a naval blockade to weaken Iran’s finances, while Tehran is betting that a prolonged disruption to the strategic waterway will keep energy prices high and increase pressure on the United States, The Wall Street Journal reports.

Iranian forces attacked two vessels belonging to the United Arab Emirates in the Strait of Hormuz late on August 13, according to Emirati officials, further escalating tensions around the crucial shipping route.

The Trump administration has made reducing oil prices one of its principal economic objectives as it seeks to increase pressure on Tehran. US officials have also pledged financial measures against Iran that they describe as unprecedented.

Washington hopes that tightening sanctions and maintaining the naval blockade will eventually force Iran to reopen the Strait of Hormuz, through which a significant share of global energy shipments normally passes.

Iran, however, has shown no indication that it intends to yield to the economic pressure. Tehran is instead seeking to use the disruption to energy supplies and higher oil prices as leverage against Washington, betting that the economic costs of the standoff will eventually force the US to change course.

By Sabina Mammadli