Afghanistan, July 28 -- Senior U.S. officials believe economic sanctions are exerting greater pressure on Iran than military strikes, arguing that mounting financial hardship is weakening Tehran's ability to sustain its regional activities and negotiate from a position of strength.

According to Axios, citing current and former U.S. officials familiar with past U.S.-Iran negotiations, intelligence assessments indicate that Iran's worsening economic crisis has become one of Washington's strongest sources of leverage as diplomacy remains stalled following months of conflict.

The report said U.S. officials believe sanctions, combined with damage to infrastructure and broader economic challenges, have intensified pressure on Iran's leadership....