Trump backs off the brink, says US is now 'low keying' Iran

Trump says the US is ‘low keying’ Iran, signaling a shift from military pressure to an economic strategy as Hormuz talks stall
Trump said Iran's worsening economy gives the US leverage, describing the standoff as ‘a chess game’ rather than an immediate military confrontation. (BRENDAN SMIALOWSKI/AFP via Getty Images)
Trump said Iran's worsening economy gives the US leverage, describing the standoff as ‘a chess game’ rather than an immediate military confrontation. (BRENDAN SMIALOWSKI/AFP via Getty Images)

WASHINGTON, DC: President Donald Trump said the United States is now "low keying" its approach toward Iran, signaling a noticeable shift from recent discussions about renewed military action to a strategy centered on economic pressure as negotiations over the Strait of Hormuz remain stalled.

Speaking to Axios on Sunday, August 9, Trump said Washington is no longer focused on immediate escalation and instead intends to watch Iran contend with soaring inflation, financial strain and growing internal divisions.

JOINT BASE ANDREWS, MARYLAND - FEBRUARY 19: U.S. President Donald Trump talks to reporters on board Air Force One on February 19, 2026 at Joint Base Andrews, Maryland. Trump is flying to Georgia to visit a steel company and speak on the economy. (Photo by Chip Somodevilla/Getty Images)
President Donald Trump said the US is now "low keying" its approach toward Iran as negotiations over reopening the Strait of Hormuz remain unresolved.  (Chip Somodevilla/Getty Images)

His remarks come just days after reports indicated he had been weighing another round of military operations before opting to de-escalate.

Trump signals strategic reset

Trump described the current approach as one of patience rather than confrontation, arguing Iran's economic troubles are already placing increasing pressure on the regime.

"We are low keying it," Trump said.

"We are only semi-negotiating with them. We are just watching Iran with its huge inflation and the fact they have no money."

With a 'full suite' of subject-matter experts on both sides, the talks have moved from broad diplomacy to a high-stakes battle over technical frameworks. (x/@thecaspianpost)
Trump said the US was "only semi-negotiating" with Iran and described the confrontation as "like a chess game." (x/@thecaspianpost)

Trump said Iran is "in very bad shape" economically and claimed the country lacks the resources to adequately fund its military. He also said the US naval blockade has further intensified Tehran's financial difficulties.

Describing the broader standoff, Trump added, "It will work out. It always works out. It's like a chess game."

Economic pressure takes priority

Rather than viewing Iran's worsening economy as a side effect of the conflict, the Trump administration now appears to see it as its strongest negotiating tool. According to US officials cited by Axios, the White House believes avoiding another round of military action forces Tehran to confront rising inflation, damaged infrastructure and a deepening financial crisis without the unifying effect of an active war. 

A small motorboat passes anchored vessels in the Strait of Hormuz off Bandar Abbas, Iran, Thursday, June 11, 2026.(Amirhosein Khorgooi/ISNA via AP)
US officials said the administration believes Iran's economic strain could increase pressure on the government without another round of military action. (Amirhosein Khorgooi/ISNA via AP)

Officials argued that renewed fighting could allow Iran's leadership to rally public support around an external threat. By holding off on military escalation, they believe economic hardship will place greater pressure on the regime while preserving Washington's leverage in future negotiations.

Trump also pointed to lower oil prices, saying American consumers were feeling less economic pain as crude traded just above $75 per barrel, reinforcing his view that time is currently working in the United States' favor.

Hormuz deal still in limbo

Trump's comments came as negotiations over reopening the Strait of Hormuz remained unresolved after Iran introduced additional conditions for restoring normal shipping through the waterway.

5,000-pound munitions hit coastal targets to stop threats against global shipping. The military mission aims to neutralize hardened launch sites that have paralyzed the waterway (@CENTCOM/X)
Negotiations over reopening the Strait of Hormuz remain unresolved after Iran introduced additional conditions for restoring commercial shipping. (@CENTCOM/X)

Speaking to Axios, Trump said the United States was "only semi-negotiating" with Iran while closely watching the country's economic situation. He also described the standoff as "like a chess game," but did not issue any new military threats during the interview.

The remarks followed a period of uncertainty surrounding the proposed Hormuz agreement, which had been negotiated by the United States, Oman and Iran. Iran's latest demands have delayed any announcement on the deal, while US officials told Axios internal disagreements within the Iranian leadership have also complicated the negotiations.

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