Donald Trump has decided that the United States will not resume large-scale military action against Iran for now, opting instead to increase economic pressure, Axios reports.

Trump said Washington is only partially engaged in negotiations with Tehran while closely watching Iran’s worsening economic situation. He believes high inflation and a shortage of funds have seriously weakened the country, while the US naval blockade has deepened the crisis.

Sources cited by Axios said Trump had recently been leaning toward restarting a major military operation but was persuaded to shift temporarily toward de-escalation.

The Wall Street Journal previously reported that Trump was prepared to declare victory unilaterally and announce the end of the war even without a nuclear agreement if Iran reopened the Strait of Hormuz.

Trump based that position on his claim that Iran’s nuclear program had suffered such severe damage that it would not be able to recover significantly during his presidency.

Meanwhile, talks involving the United States, Iran and Oman over reopening the Strait of Hormuz remain deadlocked. Tehran is demanding an end to hostilities, the lifting of the naval blockade and sanctions, the withdrawal of US forces from the region, compensation for damages and the unfreezing of Iranian assets.