war of nerves

noun2

1. •
   Warfare characterized by psychological manipulation, involving tactics intended to demoralize, frighten, and unnerve opponents in order to prompt surrender.

   • Our brave Ottoman soldiers are not easily frightened by noise, owing to their splendid nerves—and this is a war of nerves, a war in which strong nerves mean victory. — 1915
2. •
   A situation in which opposed parties refrain from direct conflict but maintain a tense, contentious relationship in which each uses annoyances or intimidating psychological tactics to attempt to dishearten and unnerve the other.

   • A united steel industry appeared to have emerged the victor today in a war of nerves to raise prices on some of its products in the face of White House pressure to hold the price line. — 1966