President Donald Trump indicated on Sunday, August 10, 2026, that the United States is currently "low-keying it" with Iran, opting to let economic pressure intensify rather than immediately escalate military action against Tehran. In a phone interview with Axios’ Barak Ravid, Trump highlighted Iran’s severe inflation and lack of funds, noting the regime’s struggle to pay its troops amid a financial crisis.

Trump’s remarks follow weeks of the administration raising the possibility of renewed large-scale military operations. However, the focus has shifted toward leveraging Iran’s economic difficulties, which are compounded by U.S. sanctions, a naval blockade, and internal issues including decades of economic mismanagement and spending decisions by the Islamic Republic.

Data from the Central Bank of Iran, provided by Maleki to Fox News Digital, shows that Iran’s military spending rose dramatically from 16% of total government spending in 1993 to 52% by 2006, while education spending declined from 27% to 15%. The Islamic Revolutionary Guard Corps (IRGC) reportedly received about $6.96 billion, compared to $2.73 billion for Iran’s conventional military, the Artesh, according to an analysis by the United States Institute of Peace’s Iran Primer.

On July 29, the U.S. Treasury announced sanctions targeting cryptocurrency exchanges accused of financing the IRGC and international currency networks moving hundreds of millions of dollars for Iran. Additionally, the Office of Foreign Assets Control (OFAC) sanctioned over 100 vessels linked to Iran’s shadow fleet since early 2026.

Morad Tahbaz, an Iranian-American conservationist formerly imprisoned in Iran’s Evin Prison, commented that sanctions have created a lucrative "franchise" for those controlling financial and goods channels within Iran.

Trump reaffirmed his stance against allowing Iran to acquire nuclear weapons, stating a preference for diplomatic solutions but maintaining all options if Iran continues terrorism or refuses to negotiate.

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