The U.S. naval blockade, sweeping economic sanctions and obstruction of overland export routes have crippled Iran's economy and intensified pressure on the regime, according to a new Treasury Department report obtained by Axios.

Why it matters: Treasury Secretary Scott Bessent, who is leading an economic pressure campaign dubbed "Operation Economic Outcast," is one of Trump's closest aides urging him to let the initiative play out rather than rush back into combat.

Though the report doesn't argue that the Iranian regime is close to collapsing, it does lay out the Treasury Department's view that its efforts have crippled Iran's economy and limited its ability to generate revenue.

Driving the news: As he did before Operation Midnight Hammer in June 2025 and Operation Epic Fury in February, Trump is pursuing dual tracks — trying to reach a deal to restart peace talks while also preparing to possibly resume major combat operations after the midterms.

The Treasury campaign, which launched in late August, is a…