The Memo: Trump and Bessent crank up economic pressure on Iran as other options fall short

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The Hill's Headlines (PM) - August 24, 2026

The Hill's Headlines (PM) - August 24, 2026

Six months into the war on Iran — and with less than three months left before the midterms — the Trump administration has decided it’s time for Plan C.

Treasury Secretary Scott Bessent on Monday laid out his ambitions for an “economic onslaught” against the Islamic Republic that would target its “financial connections around the globe.”

The hope within the administration seems to be that turning up the economic heat on Iran can produce tangible results without the baleful complications that could result from the two other broad options before the president.

If President Trump were to return to all-out war, he would risk a new spike in oil prices, Iranian reprisals aimed at U.S. allies in the Gulf, and a further diminution of American munition stockpiles. Even then, it is not clear that a definitive victory would be achieved without putting U.S. boots on Iranian soil — a scenario that has vanishingly thin support from the public.

If, on the other hand, Trump were to sue for peace right now, Iranian recalcitrance — and an apparent belief in Tehran that they retain plenty of leverage — would require him to make sizeable concessions.

The memorandum of understanding signed in June provided a preview of how such an approach would be received: Negatively.

The memorandum drew criticism from GOP hawks, who suggested it was too soft on Iran; from liberal opponents, who asked rhetorically what the war had been for in the first place; and from Israel, which jointly........

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