The comments came as Morgan pushed O'Reilly on how the United States could force compliance from Tehran without sending ground troops into the country.
O'Reilly said Iran's economy is already under severe strain, noting inflation inside the country has climbed above one hundred percent.
He argued that further strikes on ports, roads, and bridges would deepen that economic pressure and make daily life increasingly difficult for ordinary Iranians, a strategy he said would be used instead of a ground invasion, which he said would not happen.
In his words, Bill O'Reilly said, "Well, inflation is running more than 100% over there now. So he'll bomb the ports.
"He'll bomb the infrastructure, the roads, the bridges, all of those will go and it'll make life very, very difficult for the individual Persian," he said.
Morgan followed up by asking what would happen if Iran responded by attacking neighboring Gulf states instead of directly engaging the United States militarily, a tactic he said Iran has already shown willingness to use.
O'Reilly acknowledged Iran retains the capacity to cause damage through such attacks, but argued that country's overall ability to wage sustained warfare has been sharply reduced since the conflict began, according to what he described as current American intelligence assessments.
He compared the likely outcome to a prolonged war of attrition that would only worsen conditions inside Iran the longer its leadership refused to cooperate.
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