A demoralising conflict (3,2,6)
I believe the answer is:
war of nerves
'conflict' is the definition.
(I have seen 'Psychological conflict ' mean 'war of nerves' so perhaps 'conflict' could also mean 'war of nerves')
I cannot understand how the rest of the clue works.
Can you help me to learn more?
(Other definitions for war of nerves that I've seen before include "Psychological tactics in contest" , "Psychological conflict" .)