Vice President JD Vance says the United States’ “most effective tool” against Iran is economic pressure, as the Trump administration escalates what it calls an unprecedented campaign of sanctions and isolation.
Speaking on a podcast, Vance described the current standoff as “a delicate dance” in which both sides are applying pressure to each other. But he argued the balance has shifted in Washington’s favor: “What has been true over the last couple of weeks is they felt a lot more pressure than we have.”
Trump’s ‘crushing’ economic operation
Vance’s comments came after President Donald Trump said the U.S. will launch what he called the “most crushing economic operation ever taken against any country” aimed at Iran. Trump also threatened severe financial penalties on any nation that helps Tehran evade sanctions, warning of “Economic Warfare and Isolation on an unprecedented scale.”
In his remarks, Vance acknowledged that pump prices for Americans remain elevated, but claimed they have come down “substantially” because the U.S. military has helped move “a lot of oil and gas out” of the Strait of Hormuz.
However, data from trade intelligence firm Kpler suggests the strait is still far from normal operations. Ship traffic through the waterway has been sharply reduced, with 10 crossings observed on Monday and just two transits on Sunday, according to Kpler. Before the war, an average of about 130 ships a day passed through the strategic chokepoint.
Iran’s leverage and what Vance says is at stake
Vance said Iran’s main leverage is control over access to the Strait of Hormuz. “If we can, not even get it back to where it was before, but if we can get enough oil and gas out to give some Americans some ease at the pumps, some ease on energy prices,” the U.S. could ease domestic pressure, he said.
The vice president said Iran is being punished for shooting at commercial ships, and that the U.S. will make sure Iranian forces are not able to do that. “I think we’ve been quite successful,” he claimed, echoing Trump’s Truth Social post that said Iran was already “on the ropes.”
Vance framed the choice for Tehran in stark terms: “Do they want to have their economy strangled for the rest of time, or do they want to have a better relationship with the West? That’s always been the option that the president has put to these guys.”
— CNBC’s Anniek Bao and Chloe Taylor contributed to this report.
Source: www.cnbc.com — https://www.cnbc.com/2026/08/21/us-iran-war-trump-hormuz-vance-economic-pressure.html
This article is for informational purposes only and does not constitute financial, investment, tax, or legal advice. Do your own research and consult a licensed professional before making financial decisions.
