Washington

US Secretary of State Marco Rubio has said that economic pressure on Iran had become so severe that President Donald Trump saw no immediate need for major combat operations, while warning that Washington remained ready to respond militarily if Tehran escalated.

Rubio told reporters after a G-7 meeting that the combination of a blockade and sanctions was squeezing Iran's oil earnings. He rejected suggestions that the absence of new major strikes amounted to a stalemate, arguing that the economic damage would deepen over time.

"What I'm saying to you is that the economic campaign is so devastating that right now there really is no need for major combat operations."

Rubio said he had conveyed that assessment to US partners. Discussions at the meeting focused principally on the Middle East and Ukraine, with representatives from Saudi Arabia, Brazil, Egypt and South Korea also participating.

Asked about the possibility of Iranian attacks on civilian infrastructure, he warned: "I mean, if they -- if they do that, then they'll pay a terrible price."

Rubio said Iran was approaching the exhaustion of oil supplies already at sea. Those shipments, he said, had passed through during a temporary ceasefire arrangement when the blockade was suspended. "Once that dries up, almost all of their oil revenue will dry up."

He said Treasury Secretary Scott Bessent and US intelligence agencies were working to close routes used to evade sanctions. Reduced income, he argued, would constrain Iran's ability to finance its nuclear programme, armed partners and other activities.

The transcript provided no independent figures to substantiate his assessment of the economic damage.

Rubio maintained that Washington remained open to negotiations. Qatar and other countries were continuing mediation efforts, he said, adding that the Qatari prime minister had met Trump in Washington the previous day.

But he described Iran's negotiating conditions as unrealistic. He said Washington would reject demands for reparations and cash payments, while maintaining that Iran could have a civilian nuclear energy programme like other countries. "You know, if there's a deal to be done, it -- the President will be the first one to be in favour of it, but it's not going to be a stupid deal."

Challenged about the economic consequences for Gulf countries, Rubio disputed the suggestion that their economies were being devastated. He said oil shipments were continuing despite Iranian drone attacks on commercial vessels.

On some nights, he said, flows were reaching 80 to 85 per cent of pre-conflict levels. He attributed the remaining shortfall to the interruption of Iranian exports.

Rubio urged other countries to help protect shipping through the Strait of Hormuz. He acknowledged that he had received no response when he raised the issue with G7 counterparts, though he said such commitments would probably require decisions by heads of government.

He also rejected linking Lebanon's future to negotiations with Tehran. Washington was mediating directly between Lebanon and Israel, he said, and was working on a system to verify compliance with arrangements involving Israeli withdrawals and deployments by the Lebanese armed forces.