Former U.S. national security adviser Susan Rice said the United States is returning to diplomacy with Iran from a weaker military position.

Rice's assessment highlights a perceived decline in American leverage at a time when regional tensions are escalating. This shift in power dynamics could complicate efforts to secure stable agreements, and limit Iran's regional influence.

Speaking in an interview with the Australian Broadcasting Corporation, Rice said the U.S. has suffered significant losses while failing to achieve its primary objectives. She said, "We’ve lost 13 service men and women [1], we have paid over $50 billion of taxpayer money [1] for a war we never should’ve waged."

Rice said these costs have left the U.S. in a precarious position. She said, "Now we are back to diplomacy with a far weaker hand."

According to Rice, the current diplomatic landscape is further strained by Iran's ability to exert pressure on the global economy. Specifically, she pointed to Iran's capacity to utilize the Strait of Hormuz to influence the U.S. and international markets [2].

This strategic vulnerability occurs as the U.S. attempts to navigate a complex relationship with Tehran. The reliance on diplomacy without a strong military deterrent, Rice said, reduces the effectiveness of U.S. negotiations [1].

Now we are back to diplomacy with a far weaker hand.

The warning from a former high-ranking official suggests that the U.S. may no longer possess the coercive power necessary to force concessions from Iran. By highlighting the economic risk associated with the Strait of Hormuz and the human and financial cost of previous conflicts, Rice indicates that the U.S. is negotiating from a position of vulnerability rather than strength.