Trump signals shift toward economic pressure on Iran: Report

US President Donald Trump on Sunday signaled that he is prepared to rely on mounting economic pressure on Iran rather than immediately launching a new military offensive, according to an Axios interview.

"We are low keying it," Trump told Axios.

Trump said Washington is "only semi-negotiating" with Tehran while closely monitoring Iran's deteriorating economy.

"We are just watching Iran with its huge inflation and the fact they have no money," he said.

Trump argued that Iran is in "very bad shape" financially and is struggling to pay its troops.

He said a US naval blockade has intensified pressure on the Iranian government and contributed to its economic crisis.

According to him, the economic impact of the conflict on Americans has eased as oil prices have fallen to slightly above $75 a barrel.

"It will work out. It always works out. It's like a chess game," Trump said of the confrontation with Tehran.