The confrontation between the United States and Iran has entered a new phase. The war that dominated headlines earlier this year is increasingly giving way to a broader contest involving economic pressure, maritime security, diplomacy, and power. This conflict has accelerated trends across the world, ushering in a new world order.

The Trump administration has made it clear that it believes the next stage of the campaign will rely less on airstrikes and more on isolating Iran economically while maintaining military deterrence. Tehran, meanwhile, seeks to mobilize its remaining friends and demonstrate that it still retains leverage.

Here are five ways the US-Iran conflict is changing:

One: The Strait of Hormuz may be shifting from a battlefield to a shipping corridor

One of the clearest signs of the transition came today, when President Donald Trump announced that the US Navy had successfully cleared naval mines from the Strait of Hormuz. “All mines have been removed and/or detonated from within the International Waters of the Strait of Hormuz,” Trump wrote on Truth Social.

The message concerned far more than just mines. It demonstrates Washington’s intent to guarantee freedom of navigation despite Iran’s many attempts to disrupt maritime traffic. Trump also warned that Iran had been informed that any vessel attempting to lay additional mines would be “immediately and systematically destroyed.” The US has backed freedom of navigation as a policy going back to the Woodrow Wilson administration more than 100 years ago.

Supporters of Reza Pahlavi and Iran's former monarchy take part in a demonstration in New York City, May 16, 2026.
Supporters of Reza Pahlavi and Iran's former monarchy take part in a demonstration in New York City, May 16, 2026. (credit: Ed Ou/Reuters)

The message concerned far more than just mines. It demonstrates Washington’s intent to guarantee freedom of navigation despite Iran’s many attempts to disrupt maritime traffic. Trump also warned that Iran had been informed that any vessel attempting to lay additional mines would be “immediately and systematically destroyed.” The US has backed freedom of navigation as a policy going back to the Woodrow Wilson administration more than 100 years ago.

Currently, the US’s objective appears to be removing Iran’s leverage while reassuring global energy markets that international shipping can continue.

Two: Economic pressure has become Washington’s primary weapon

The Trump administration has signaled that economic pressure is the centerpiece of the US’s strategy.

US  Secretary of the Treasury Scott Bessent announced the launch of Operation Economic Outcast. He described it as an unprecedented campaign to financially isolate Iran.

“In the Second World War, D-Day marked the historic beginning of a campaign with our allies to target and drive the enemy from its positions,” Bessent said. “Today, in that same spirit, we are launching an economic onslaught against Iran’s financial connections around the globe.”

The Treasury Department indicates that it has mapped Iran’s financial networks, oil smuggling operations, sanctions evasion mechanisms, and funding channels linked to the Islamic Revolutionary Guard Corps (IRGC). The US’s goal is to sever what it describes as every remaining economic lifeline supporting the regime.

Unlike previous sanctions campaigns, this initiative appears designed as an open-ended global effort rather than a series of individual sanctions packages. Washington is also framing the campaign as a choice for third-world countries: align with the United States or risk becoming economically isolated alongside Iran. It remains to be seen if this will work.

Three: China is beginning to express its concern about the conflict as it inches its way into the region

The new American strategy immediately highlighted another reality: the growing importance of China. China criticized the new sanctions, warning that they would “only further intensify tensions” and arguing that its legitimate cooperation with Iran should not be disrupted. Chinese officials once again opposed what they described as unilateral American sanctions.

China has a 25-year economic deal with Iran. Notably, China benefits from the US being tied up in its fight against Iran.

Iranian officials have similarly emphasized that China remains one of Tehran’s most important partners. Iran’s Economy Minister, Seyed Ali Madanizadeh, argued that both China and Russia have shown no indication that they intend to fully comply with Washington’s new campaign.

This reflects a broader geopolitical competition. For years, Iran has looked eastward as relations with Western countries deteriorated. China has purchased Iranian oil, invested in infrastructure, and expanded political ties. Russia has likewise deepened military and strategic cooperation with Tehran. Iran expects more from China, but China has shown itself to be pragmatically cautious thus far.

As a result, the US-Iran confrontation is becoming inseparable from wider competition among major powers as the world order shifts to accommodate. The effectiveness of Operation Economic Outcast may depend not only on American enforcement, but also on whether China and Russia decide to reduce their engagement with Iran.

Four: Iran is responding to economic pressure

Iran’s response illustrates that Tehran increasingly views economic pressure as another form of warfare. Madanizadeh described the new sanctions as an “economic terrorist attack” and warned that Washington should “expect an attack” in response. “We know how to play the game too,” he said during an interview broadcast on Iranian state television.

Although the precise meaning of these comments remains unclear, Iranian leaders have sought to respond to economic pressure through so-called asymmetric means. Previous periods of sanctions have coincided with responses that included cyberattacks, threats by Iranian-backed proxy groups, maritime attacks, and efforts to disrupt regional energy infrastructure. Washington’s successes against Iranian mines imply that Iran can no longer control the tempo of war.

Five: Regional diplomacy is continuing despite war. Diplomacy has not yet evaporated

On August 25, Oman and Iran issued a joint statement following consultations between Omani Foreign Minister Sayyid Badr bin Hamad Albusaidi and Iranian Foreign Minister Abbas Araghchi. They posted on social media platform X/Twitter about their new initiative.

The discussions focused on restoring safe navigation through the Strait of Hormuz while respecting sovereignty. Both governments said they discussed a phased framework that could provide a practical basis for moving forward after the recent conflict.

Oman has long played a key role in regional diplomacy. The Sultanate has maintained relations with both Washington and Tehran, and has frequently served as a discreet channel for negotiations. Previous US-Iran nuclear talks also benefited from Omani mediation. This has led to US threats against Oman.

Iran is seeking to demonstrate its resilience while preserving diplomatic options through partners such as Oman. Regional states are attempting to prevent another escalation that could once again threaten global energy markets. Oman’s outreach comes after Pakistani officials visited Tehran.