Trump Pivots to Economic Pressure on Iran
President Donald Trump told Axios he will rely on mounting economic pressure against Iran instead of new strikes, as Tehran named hardliner Mohsen Rezaei to lead its top security council.
The Morning Brief Desk · August 10, 2026 · Based on reporting by CNBC Top News
President Donald Trump said he intends to squeeze Iran economically rather than launch another round of military action in the confrontation over the Strait of Hormuz. "We are low-keying it," he said in an interview with Axios. The comments mark a change of approach in a standoff that has disrupted maritime traffic through the strait for more than five months, according to CNBC, which reported the two sides remain far apart on a resolution.
As Trump described his shift in Washington, Tehran made a move of its own. The Financial Times reported that Iran named Mohsen Rezaei, who once commanded the Islamic Revolutionary Guard Corps, as the new head of its Supreme National Security Council, the country's top security body. Rezaei is known as a hardliner, and the change comes while Iran and the United States are engaged in talks over the strait, with Oman acting as the go-between.
The timing of the two developments cuts in opposite directions: the U.S. president publicly stepping back from military options on the same day Iran elevated a figure associated with a tougher security posture. Neither government has explained how the personnel change or the American shift will affect the Oman-mediated negotiations.
The context
The Strait of Hormuz crisis has been running for more than five months, during which shipping through the waterway has been constrained. The material available does not detail how the standoff began, but it has escalated to the point that U.S. military action against Iran was on the table before Trump's latest remarks; Axios reported he is now prepared to let economic pressure build instead, even as Tehran continues to defy Washington. Negotiations aimed at resolving the dispute are underway with Oman serving as intermediary. Into that process steps Rezaei, a former Revolutionary Guard commander whose appointment to lead the Supreme National Security Council replaces Iran's previous top security official at what the Financial Times called a pivotal point in the talks. Al Jazeera has examined how consequential his elevation may prove.
Why it matters
The strait is central to global oil flows, and the standoff there has been a driver of oil prices, inflation and market moves this week. Trump's explicit turn toward economic tools lowers the immediate odds of a new U.S. offensive, which matters for shippers, energy markets and regional governments. At the same time, putting a hardline former IRGC commander atop Iran's security apparatus mid-negotiation raises questions about whether Tehran intends to bargain or dig in. Together, the two moves reshape the terms of a crisis that has already choked shipping for over five months.
What’s next
The Oman-mediated talks continue, and CNBC reports a resolution remains distant. Key open questions: what specific economic measures the Trump administration will apply, how Rezaei steers Iran's negotiating position, and whether shipping through the strait recovers. No timeline for the talks or for new U.S. actions has been announced in the material available. Watch for signals from Muscat and for any change in Iranian posture under its new security chief.
Sources
CNBC Top News — Trump signals shift to economic pressure as Iran hardens stance over Strait of Hormuz
Trump signaled a pivot from military action to mounting economic pressure as the Hormuz crisis, now choking shipping for more than five months, remains far from resolution.
Financial Times — Iran replaces top security official at crucial moment in talks over Strait of Hormuz$ Subscription
Iran appointed former IRGC commander Mohsen Rezaei to head its Supreme National Security Council at a pivotal moment in the Hormuz negotiations.
Axios — Trump to Axios: "We are low-keying it" with Iran
Trump told Axios he is prepared to let economic pressure mount on Iran rather than order a new military offensive, even as Tehran continues to defy the U.S.
Al Jazeera — Who is Mohsen Rezaei, and how significant is his appointment?
Profile of the hardline former IRGC commander taking over Iran's top security body amid the Hormuz talks with Oman as intermediary.
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