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

WASHINGTON (AP) — President Donald Trump is pursuing a two-track strategy aimed at pressuring Iran’s government to stop threatening international shipping and destabilizing the Gulf region.

The administration’s approach combines tougher economic measures with the option of additional military action if Iran continues its attacks.

At the center of the economic campaign is what the White House calls Operation Economic Outcast. The effort is designed to isolate Iran from the trade and financial relationships that help sustain its regime. The administration has warned countries and institutions still doing business with Tehran that they could face consequences for maintaining those ties.

White House officials say the goal is clear: cut off the remaining economic lifelines supporting a government that has refused to change course despite months of diplomatic, financial, and military pressure.

The administration is also keeping military options on the table. Secretary of State Marco Rubio says the main cost Iran will face will be economic, but he says the United States retains the right to use force when necessary—not only to defend American personnel and interests, but also to prevent Iran from threatening others.

That position comes after renewed U.S. strikes against Iranian targets and retaliatory Iranian attacks in the region. Iran fired at Kuwait, a U.S. Gulf ally, as Tehran responded to American bombardments earlier this week.

Vice President JD Vance defended the administration’s position during a White House briefing. Vance said he would not describe the current situation as a conventional war, noting that there was no active shooting at the moment he spoke. But he emphasized that the United States has a responsibility to act when Iran targets commercial vessels moving through the strategically critical Strait of Hormuz.

That waterway is one of the world’s most important energy shipping lanes. Vance said U.S. forces escorted approximately 15 million barrels of oil through the region on Wednesday, highlighting the administration’s effort to keep global commerce moving and prevent Iran from using maritime attacks to hold the world economy hostage.

President Trump has argued that a firm response is necessary because weakness would invite further aggression. The administration says its military operations have inflicted serious damage on Iran’s naval and air capabilities, while the economic campaign is intended to increase pressure on the regime without relying solely on prolonged combat.

Supporters of the president say the strategy reflects a practical principle: Iran should face consequences for threatening civilian shipping, attacking U.S. partners, and resisting international pressure. They also argue that Republicans are backing an approach focused on deterrence—using American strength to protect vital sea lanes, defend allies, and deny Tehran the resources needed to continue its aggression.

At the same time, the administration faces a difficult reality. Iran has not yet backed down, regional tensions remain high, and the risk of wider conflict continues to concern U.S. allies and American voters.

Still, the Trump White House is signaling that it will not simply accept Iranian attacks on shipping or regional partners. Its message is that Tehran can choose de-escalation—or face growing economic isolation and, if required, a stronger American military response.

PHOTO – 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)