Iran May Have Little to Lose as U.S. Tries to Squeeze Its Economy

THE NEW YORK TIMES: Experts warn that a campaign aimed at avoiding military escalation could instead provoke it, as Iranian leaders vow retaliation across the oil-rich Gulf.

Screenshot taken from this NYT article. | Drivers waiting at a taxi station in Tehran last month. Credit: Arash Khamooshi/Polaris for The New York Times
Facing a fresh economic assault from the United States, Iran’s leaders are gambling that they can weather the coming storm and make the cost of their suffering felt in an oil-rich region that is critical to the global economy.

With Iran’s devastating economic crisis deepening, experts warn, Iranian leaders may feel they have little to lose by responding to U.S. pressure with the kind of military escalation President Trump now seems keen to avoid.

“The harder Washington pushes third countries to sever Iran’s remaining lifelines, the stronger Tehran’s incentive becomes to demonstrate that participating in Iran’s isolation carries costs of its own,” said Sina Toossi, an Iran expert at the Center for International Policy.

For months, as military confrontation has slowed, Iran’s struggle with Washington has amounted to a game of chicken over who can withstand the economic pain longer. » | Erika Solomon and Sanam Mahoozi | Tuesday, August 25, 2026