President Donald Trump is increasingly leaning on Treasury Secretary Scott Bessent's strategy of economic pressure in the nearly six-month conflict with Iran, sidelining Secretary of War Pete Hegseth amid frustrations over military munitions shortages. This shift represents a move away from Hegseth's favored approach of overwhelming force.
A source familiar with Trump's thinking described the two approaches as a "sledge-hammer" for Hegseth and a "scalpel" for Bessent. The president reportedly voiced his bewilderment at Hegseth during an early August retreat at Camp David, questioning the Secretary of War about persistent shortages of critical defense munitions that Trump believed had been resolved.
Insiders suggest Hegseth, like some other advisors, may tell Trump "what he wants to hear" rather than providing unvarnished assessments. A Republican member of the House Armed Services Committee told the Daily Mail that Hegseth might be hesitant to be fully candid about the war for fear of losing his position.
In Situation Room briefings, Trump typically seeks assessments from top generals and National Security Council members. However, Bessent has been increasingly elevated in these discussions. On Monday, Bessent unveiled "Operation Economic Outcast," an initiative aimed at sanctioning Iran and its trading partners to compel negotiations, a strategy that follows an "on-again, off-again bombing campaign" that yielded limited results.
"The environment changed," a Trump insider stated, indicating a growing recognition within the administration that a purely military approach is insufficient. Reports of dwindling U.S. stocks of air-defense missiles and other munitions have coincided with this pivot toward economic pressure. The U.S. has not publicly acknowledged any strikes on Iran since July 29, marking the longest pause in publicly confirmed American strikes since the war began on February 28.
Bessent, who holds a seat on the National Security Council, has been influential in the administration's Iran policy, utilizing the Treasury's sanctions powers to disrupt Iran's oil revenues. "He's very trusted," a source close to the president said. "It's not just on Iran, his stock is increasing. He's just more and more involved in things."
Bessent's influence is seen as particularly valuable as the election approaches, with his ability to discuss both frozen Iranian assets and economic concerns like grocery prices making him a key figure for the administration. "Bessent is just the person they roll out," the source added. "As the midterms come up it's economy, economy, economy."
Despite his rising profile, Bessent faces challenges, including mixed results in efforts to lower borrowing costs and the need to compel Iran's trading partners to comply with sanctions. Allies of Hegseth maintain that his elevated role is not a demotion, with a senior Department of War official close to Hegseth suggesting that public and congressional acceptance of military action has limits. "The economic measures complement the bombing campaign. The new phase is a much better strategy," the official stated.
Hegseth himself has acknowledged the decreasing impact of strikes, noting that "Economic pressure hurts them the most right now." He added that "If we need to use kinetic strikes, we'll use them. If Iran is foolish enough to overplay their hand or mess with the American military, we'll do what we need to do." He also expressed cooperation with Bessent's new economic operation. A White House official affirmed that both secretaries remain on "equal footing" and will continue to be heavily involved in the conflict.