Sanctions Do More Damage to Iran Than Bombs - Axios

WASHINGTON, Jul 28: Senior US officials believe Washington’s economic pressure campaign may ultimately prove more damaging to Iran than military strikes, according to an Axios report.

The report, citing senior administration officials, said US intelligence assessments indicate that Iran is facing mounting economic strain, including gasoline shortages, risks of bank runs and growing difficulties in paying fighters, as sanctions and a US naval blockade tighten pressure on Tehran’s economy.

One US official was quoted as saying Iran is “more scared of Treasury than the War Department,” suggesting that financial measures could have a greater long-term impact than military action. However, the official acknowledged that economic pressure may take longer than a full-scale military campaign to compel Tehran to reach an agreement.

According to the report, access to frozen assets and relief from US sanctions remain among Iran’s top priorities in ongoing negotiations aimed at transforming the current pause in hostilities into a lasting ceasefire.

The assessment underscores the Biden administration’s view that sustained financial pressure, alongside diplomatic efforts, could play a decisive role in shaping Iran’s willingness to negotiate while avoiding a broader regional conflict.