flatten Iran with the USAF and minimize the amount of damage done to the rest of world's economy
This is an insane plan. Iran provides like 5% of global oil, and even severely "flattened" they can mine and control the strait of hormuz, which would shut down about 30-40% of the world's oil. They could knock out desalination plants in the gulf states and create tens or hundreds of millions of refugees.
They are hoping Iran will fold and negotiate again (surrender). Trump is openly calling for it over and over, while standing right on the brink. It's very clear he's hesitant to go forward and thought they would surrender