President Donald Trump said Iran faces two possible outcomes: continued economic deterioration under U.S. pressure or a forceful military response, while signaling he prefers to wait as Tehran’s finances worsen. In an Axios interview, Trump said, "We are just watching Iran with its huge inflation and the fact they have no money" and added, "We are low-keying it." The report says the U.S. has maintained a naval blockade affecting the Strait of Hormuz since at least April 2026, compounding the impact of sanctions and hostilities on Iran’s economy. Estimated damage from the conflict and sanctions stands at $150 billion to $200 billion. The account describes inflation reaching as high as 300%, a sharp currency decline and difficulty paying military personnel. Because roughly a fifth of global oil supply moves through the Strait of Hormuz, the blockade has hit a key channel for Iran’s oil revenue, even as crude prices have stabilized at just over $75 a barrel. Iran is seeking removal of the blockade and sanctions, withdrawal of U.S. forces and reparations, demands that the report says make a negotiated settlement difficult to imagine.