Vice President JD Vance says the U.S. confrontation with Iran has entered a “new phase,” with Washington increasingly relying on economic pressure as its most effective tool. Speaking on The Clay Travis and Buck Sexton Show, Vance said the administration intends to keep applying that pressure because it believes economic measures offer the best path toward achieving its ultimate objectives. His comments come as President Donald Trump has threatened an unprecedented campaign of economic warfare and isolation against Tehran.

Vance’s remarks signal a shift in emphasis from the most intense phases of military confrontation toward economic attrition. He described the strategy as a delicate balance in which Washington applies pressure while Iran attempts to impose costs on the United States and its partners. Vance argued that Iran has so far felt considerably more pressure than the United States, suggesting that the administration believes its economic strategy is gaining momentum.

The economic campaign is unfolding alongside the continuing struggle over the Strait of Hormuz, one of the world’s most important energy corridors. Vance has said U.S. military and commercial efforts have moved significant quantities of oil and gas out of the strait, helping reduce the leverage Iran can obtain from controlling or disrupting energy traffic. At the same time, shipping through the waterway remains severely disrupted, with Reuters reporting that only seven commodity ships crossed on Thursday and no large crude-oil carriers or LNG tankers were among them.

Washington is now preparing to intensify the pressure further. Treasury Secretary Scott Bessent has announced plans for what he called the “toughest sanctions in history,” while Trump has warned countries assisting Iran that they could face severe economic consequences. Iran has rejected the U.S. campaign and warned that additional pressure could provoke a broader response, demonstrating how the economic battle could become a major front in the wider confrontation.

Vance’s declaration leaves little doubt that the administration intends to keep the pressure campaign running rather than immediately seek another military escalation. The strategy now puts Iran’s economy, energy exports, international trade and access to financial networks directly in Washington’s sights, raising the stakes for Tehran and countries doing business with it. The crucial question is whether sustained economic pressure will force Iran toward Washington’s desired outcome—or whether Tehran will absorb the punishment and respond by escalating the confrontation elsewhere.