Following the military skirmishes and missile attacks, the US has started using its biggest weapon—economic blockade and financial sanctions (Maximum Pressure)—with full force to put Iran on the strategic backfoot. Washington's aim is not to limit itself to direct military conflict, but to cripple Iran's economy through 'dollar shortage' and trade sanctions and force it to come to the settlement table without a major war or change its regional and nuclear policies. America's 'economic war' and the free-fall of the Rial The US administration has imposed new tough sanctions on Iran's banking sector, shadow fleets, digital asset exchanges and oil trading intermediaries. This strategy has led to a severe shortage of US dollars within Iran, causing the Iranian currency 'Rial' to fall to historic lows. Inflation in Iran's banking system has reached its peak after a big bank got caught in the financial crisis and the central bank started printing currency notes recklessly. The prices of items of daily use are skyrocketing, due to which the common people have taken to the streets in many big cities including Tehran. Donald Trump's strategy: how effective? The main outline of the US strategy rests on 4 key pillars: Strategic Submission: The aim is not to change the regime, but to break Iran's economic backbone and force it to make a deal that includes a permanent freeze on its nuclear program and an end to funding to regional groups. Triple trade sanctions: By threatening to impose additional tariffs of up to 25 percent on third countries that buy oil from Iran or have financial ties with it, America has also forced Iran's economic backers to step back. Benefit of internal unrest: When people take to the streets due to economic crisis, it creates double pressure (internal protests and external sanctions) on the Iranian regime. Keeping the door open to negotiations: Despite tough sanctions, America has always kept the option of negotiations and new deals open, so that differences can be created within the Iranian leadership. What are the major risks and limitations of this strategy? Although this strategy looks extremely effective on paper, it also has its own serious global and strategic risks: Global oil market turmoil: Iran's blockade of oil trade and escalating tensions in the Strait of Hormuz have sent global crude oil prices soaring, raising fears of another surge in inflation in the US and Europe. China and support of 'grey market': Despite America's tough stance, Iran has been able to sell a large part of its oil to China and through unauthorized 'shadow fleet', which reduces the impact of American economic pressure to some extent. Iran's counterattack and regional instability: When a country's economy is completely walled off, the risk of it disrupting the Gulf's oil infrastructure or maritime trade routes increases significantly.