US President Donald Trump has taken a step back from potential military action against Iran, instead opting for increased economic pressure. This comes as Tehran continues to resist demands regarding the Strait of Hormuz. In a phone interview with Axios on Sunday, Trump indicated a more restrained approach, focusing on watching Iran's deteriorating economy rather than issuing new military warnings. The President commented that Iran is in dire economic straits, citing high inflation and lack of funds to pay its troops. The US naval blockade has further exacerbated the strain on Tehran's economy, according to Trump. He cited his Gulf allies as influencing his decision to hold off on another large-scale military campaign and instead allow economic and diplomatic pressure to build. The change in tone is evident in Trump's response to Iran's delay in finalizing an agreement with Oman over traffic through the Strait of Hormuz, with no fresh military threats issued. Instead, Trump appears willing to let economic pressure take its course, a decision influenced by relatively manageable oil prices for American consumers. However, negotiations over an agreement involving Iran, Oman, and the United States have hit a roadblock due to disagreements over Tehran’s demands, with Iranian authorities adding conditions that go beyond the original discussions. The US has rejected Iranian restrictions on shipping through the strait, including any attempt to impose tolls on commercial vessels. Trump has indicated to senior aides that he could potentially walk away without securing a new nuclear agreement with Tehran if Iran fully restores shipping through the Strait of Hormuz, representing a significant shift in the US approach. This move could give Trump greater room to prioritize the reopening of Hormuz over securing a comprehensive nuclear agreement.