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Iran exploiting Trump administration's sensitivity to pressure from the markets, expert says

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Iran exploiting Trump administration's sensitivity to pressure from the markets, expert says

Iran is leveraging the Trump administration’s heightened responsiveness to financial market pressures by threatening to close the Strait of Hormuz, according to Nicholas Mulder, a Cornell University assistant professor and author on economic sanctions. He notes that such actions are designed to exploit vulnerabilities in U.S. policy, particularly when economic stability is at stake. The strategic use of maritime chokepoints as leverage reflects a broader pattern of using economic tools to influence international decisions.

Mulder emphasizes that Iran’s approach aligns with modern tactics where economic coercion replaces direct military confrontation. By targeting global trade routes, Iran aims to create uncertainty in energy markets, thereby amplifying pressure on the U.S. government. This method underscores how non-military means can be effective in shaping foreign policy outcomes, especially when governments are attuned to investor sentiment and market reactions.

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