President Donald Trump dropped a political bombshell on the Korean peninsula this week.

But security officials say the president’s threats to curtail a major military exercise with South Korea will do little to undermine the detente between Seoul and Pyongyang.

Trump’s declaration Sunday that he would instruct the Pentagon to cut back on annual drills sent Seoul’s leaders scrambling to repair the damage. But the president appears more focused on pushing for investment from the country than trying to upend defenses against North Korea’s nuclear threat. And that means security on the world’s most militarized border hasn’t significantly changed.

The U.S. has more than 28,000 troops stationed on the peninsula, along with thick layers of air defenses. It has worked hand in glove with the Korean military for decades, a powerful joint force that works closely at every level. The border between a nuclear-armed North Korea and the U.S. ally to its south is a case study in mutually assured destruction. And top commanders in Seoul and Washington remain in tight contact.

“I don’t think this is cataclysmic,” said Sydney Seiler, former national intelligence officer for North Korea at the National Intelligence Council.

Defense officials were tight-lipped about what Trump’s announcement would mean in terms of concrete changes to military exercises. The Pentagon would only say that it is “is actively working on executing the commander-in-chief’s directive.”

Trump’s order, and his praise of dictator North Korean leader Kim Jong Un’s “unthreatening and respectful” behavior, came days after the secretive nation launched its second ballistic missile test in a week. It flew over 430 miles before landing just outside Japan’s exclusive economic zone.

Some American lawmakers said the optics were horrible, particularly Trump’s seeming desire to appease a totalitarian regime.

“Kim Jong Un has won a propaganda victory and South Korea, one of our strongest allies, has been punished for no reason beyond Trump’s ego,” said Sen. Jack Reed of Rhode Island, the top Democrat on the Senate Armed Services Committee. “China and Russia are watching how easily this president abandons America’s allies, and they will remember it the next time they test us.”

The order affects a major exercise, Ulchi Freedom Shield, a staple of the alliance since it was first held in 1976. The drills this year were scheduled to begin Monday and encompass 14 different exercises over 11 days, ranging from cyber warfare to defending against drone attacks and GPS jamming. Officials are especially worried that North Korea received Russian technologies and know-how about electronic jamming after it sent tens of thousands of troops to help Russia’s war against Ukraine.

“The alliance will manage through, [although] this is clearly a rough patch,” said Victor Cha, a former National Security Council official during the George W. Bush administration and now Korea chair at the Center for Strategic and International Studies.

Trump’s criticism of South Korea is particularly surprising because it’s a departure from comments by top Pentagon officials, who have repeatedly praised Seoul for increasing defense spending.

Pentagon policy chief Elbridge Colby called South Korea “a model ally” in a January speech in Seoul, and lauded its commitment to the alliance. Defense Secretary Pete Hegseth also praised the relationship several times this year, including when his South Korean counterpart visited the Pentagon in May.

South Korean President Lee Jae Myung on Tuesday sought to soothe concerns over a rift. He said in a Cabinet meeting that “a strong alliance makes the foundation of security stronger, and strengthening our own capabilities increases our value and necessity as an ally.”

Many officials remain puzzled about why Trump would abruptly curtail an annual exercise that has taken place reliably for 50 years. There’s some precedent. He had railed against expensive exercises in South Korea during his first term and the Pentagon did scale back some large joint operations. But Ulchi Freedom Shield is a cornerstone of the military-to-military relationship.

The effort — a combination of a tabletop, virtual event and physical exercises — will continue in some form. But U.S. officials indicated that military leadership is trying to find ways to modify the event to meet the president’s demands. And the announcement underscores that American support remains at the whim of an unpredictable president.

Some of the president’s motivation is likely financial. South Korea pledged last year to invest $350 billion in the U.S., but Trump officials believe its government is slow-walking its commitment, POLITICO has reported.

“The thing about Trump is it’s all very transactional,” said Cha. “So if they announce a first tranche of investments, he’ll be fine, right?”

But Asian allies are closely watching whether the distancing from traditional backers will continue, particularly movement of some critical American military assets out of the Pacific region. The USS George Washington aircraft carrier left port in Tokyo this month and is heading west. It will presumably go to the Middle East and replace the beleaguered USS Abraham Lincoln aircraft carrier, which is on the ninth month of an extended deployment.

The Pentagon relocated some elements of the THAAD missile defense system earlier this year from South Korea as part of a wider shift to the Middle East.

Lawmakers are also watching warily. Congress voted last year to restrict the Pentagon from reducing troop levels on the Korean peninsula below 28,500 unless the Pentagon certifies doing so is in the national interest and conducted after consultation with South Korea and other allies.

Lawmakers appear poised to extend those restrictions again in the 2027 National Defense Authorization Act.

“Reduced training hurts American preparedness too,” said Rep. Don Bacon (R-Neb.). “If we have moral clarity, then we’d treat [South Korea] as our ally and know North Korea is a dictatorship and slave labor state. … The president is wrong here.”

Conor O’Brien and Leo Shane contributed to this report.

President Donald Trump is waiting for Iran to cave to his economic pressure. Tehran may be willing to wait even longer.

Even as Treasury Secretary Scott Bessent promises a level of economic isolation “never seen before,” former Trump administration officials, U.S. ambassadors and other Middle East experts are skeptical that tightening the economic vise will force Iran to relinquish its desire to toll ships passing through the State of Hormuz and make the other concessions Trump is demanding to bring an end to the war.

“It’s an attrition campaign, and I am sure Treasury tweaks this or that to fill gaps or expand coverage of sanctions,” said James Jeffrey, a former ambassador who served in the Middle East during three presidential administrations, including Trump’s first term. “But, it’s hard to believe [there will be] something decisive after 20 years of U.S. sanctions and Iranian experience of going around them.”

It’s an acknowledgement that underscores the asymmetry of the situation. The Trump administration is staring down a consequential midterm election amid an unpopular war that has sent oil prices back up to roughly $90 a barrel and helped push long-term borrowing costs to their highest level in nearly two decades as hope dims that a peace deal is near.

Iran’s leaders, meanwhile, see the conflict as existential, giving Tehran reason to absorb the extraordinary economic pain rather than accept terms it believes could imperil the regime — especially as U.S. inflation remains elevated and treasuries sell off.

The yield on 30-year U.S. government bonds, a figure Trump has in the past been attuned to, jumped on Tuesday to its highest level since just before the global financial crisis.

The increase in the yield to its highest level in nearly two decades isn’t solely because of the six-month war; global fuel shortages and broader instability have kept energy prices higher for longer, increasing the threat of persistent inflation. And that’s heaped even more risk on global bond markets that have repeatedly blanched at Trump-related shocks.

“We are in a situation where we’re spending more and more to finance more and more,” said Julia Coronado, founder of MacroPolicy Perspectives. And the war has created “a riskier world full of more frictions, full of more supply shocks.”

Iran’s outsized incentive to muscle through the pain is partly why some former administration officials doubt that the naval blockade, while unprecedented in its scale in the modern era or whatever new strategies Bessent may unveil, will change Iran’s calculus.

“I think the economic pressure would need to hit them in new ways we haven’t seen so far to change the mindset of the regime,” said one former Trump administration official, granted anonymity to candidly assess the impact of the U.S.’s economic pressure campaign.

The administration has yet to indicate what further action it plans to take, but options include going after major Chinese banks that facilitate Iran’s oil trade, expand secondary sanctions on countries doing business with Iran and confiscating Iranian assets under U.S. jurisdiction instead of just freezing them.

Iranian leaders publicly mocked U.S. efforts to sanction them into submission.

“Americans think squeezing Iran harder will win concessions that were never part of the agreement,” Mohammad Bagher Ghalibaf, the speaker of Iran’s parliament, posted on X Tuesday.

“Bessent and [Defense Secretary Pete] Hegseth are way out of their league,” he wrote. “Stop waiting for the clown crew to pull a rabbit out of their hat and clean up the mess you made.”

White House aides, however, continue to contend that the leverage is on its side.

“The crushing sanctions and one of the most successful blockades that have crippled Iran’s economy and has left Iran completely broke,” said one administration official, granted anonymity to share the U.S.’s thinking. “There are many levers the president can crank harder in the weeks and months ahead.”

In the half-year since the Iran war began, the president has deployed an array of pressure tactics to choke Iran economically, including physically preventing the country from selling its most important export — oil — as part of an ongoing naval blockade of Iranian ports. The administration has also sanctioned foreign buyers of Iranian oil, targeted the country’s shadow fleet of ships that ferries it and sought to cut the country off from the financial networks it uses to move money.

That economic pressure has sent Iran’s economy, which was already troubled before the war, into a deeper tailspin. Now, Iran is grappling with year-over-year inflation of 88 percent, long lines and rationing at gas pumps and food prices that have more than doubled.

But those who have worked on previous Iran negotiations say that’s far from enough to get the regime to cave, especially after six months of U.S. bombing that has killed, by Tehran’s own measure, more than 3,000 Iranians.

“It’s undeniable that there is economic pressure. The question is whether there is a breaking point, and I would say for a regime that is fighting for its life and has never hesitated to transfer economic pain to its population, there is no breaking point,” said Ali Vaez, the International Crisis Group’s Iran project director, who helped work to bridge differences between Iran and world powers during negotiations over the 2015 nuclear agreement.

Yet Trump continued to project patience on Tuesday, signaling that he was prepared to let the pressure campaign play out.

“There are no talks or conversations going on, or scheduled, with the Islamic Republic of Iran. The Naval Blockade remains in full force and effect. The Hormuz Strait is open and operating. All water mines have been removed or detonated. Thank you for your attention to this matter!” Trump wrote on Truth Social.

A senior White House official, granted anonymity to discuss the situation in Iran, insisted that Iran will cave long before the pain in the U.S. or world markets become intolerable.

“Ultimately we want a deal, but in the interim, the Iranian economy is tanking … people are lining up for gas, just for a half gallon of gas. And there’s a lot of civil unrest going on in Iran, that’s not being played on the news for whatever reason,” the official said late last week. “We’re fine if that’s the route they want to take.”

Still, there are signs inside the White House that the economic impacts are a growing concern. Vice President JD Vance last week said on Fox News that the administration’s first goal in the Iran war was to “keep oil and gas cheap for Americans all over the country.” The president, meanwhile, has repeatedly insisted voters will bear the pain of higher gas prices for an end to Iran’s nuclear ambitions.

The voters have a more dyspeptic view. A Reuters/Ipsos survey released this week showed Trump’s approval rating at 33 percent, the lowest level of his presidency. Roughly 80 percent of Americans — 87 percent of Democrats and 71 percent of Republicans — think U.S. involvement in Iran “will go on for an extended period of time,” the poll found.

But some former Trump administration officials, however, are holding out hope that patience will be rewarded and that the administration’s economic pressure campaign will work, in part because they see the other options on the table, including putting U.S. boots on the ground in Iran, as politically untenable.

Fred Fleitz, Trump’s former National Security Council chief of staff and vice chair of the American First Policy Institute’s American Security, predicted that the U.S. could be “dealing with a different Iran” in 30 to 60 days.

“I think patience is the best approach,” Fleitz said. “I don’t believe that a large-scale military attack right now is going to make a difference in changing the regime’s position, and I strongly oppose the idea of seizing Kharg Island or sending in American troops. The American people don’t want that. That would really bog us down in a quagmire.”