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US President Donald Trump speaks at the Department of State in Washington on Sunday (local time). [AP]
US President Donald Trump speaks at the Department of State in Washington on Sunday (local time). [AP]

US President Donald Trump signaled he favors economic pressure and negotiations over new military action against Iran, even as talks over reopening the Strait of Hormuz have stalled amid fresh Iranian demands.

Speaking by phone Sunday (local time), Trump told Axios he was taking a measured approach to the standoff. "We're being low-key about it," he said. "We're just semi-negotiating with them."

Trump said the US was watching Iran struggle under severe economic strain. "We're just watching Iran with massive inflation and no money," he said, describing the country as being in a "very difficult situation."

He added that Iran lacks the funds to pay its own soldiers, and that the US maritime blockade has deepened the Iranian government's economic crisis.

Trump also said that with international oil prices having fallen to just above $75 a barrel, American consumers were feeling less of the burden from the war, Axios reported.

Despite the drawn-out negotiations, Trump struck an optimistic tone. "It'll work out well," he said. "It always works out well. It's like a chess game."

Trump did not raise the prospect of new US military threats against Iran during the call.

He also showed no anger or frustration over Iran's delay in announcing a deal with Oman to reopen the Strait of Hormuz, Axios reported.

Even as Iran continues to reject US demands, Trump signaled he was prepared to intensify economic pressure rather than order new military strikes.

On Saturday night, Trump announced he had called off a major strike against Iran at the request of a Middle Eastern country, and urged a swift agreement to reopen the strait.

Talks between Iran and Oman over reopening the Strait of Hormuz had appeared close to a deal, but the outlook has grown uncertain again after Iran presented the US with a new set of conditions.

Mohammad Baqer Zolghadr, secretary-general of Iran's Supreme National Security Council, issued a statement Sunday laying out six conditions for reopening the strait — including lifting the US maritime blockade, withdrawing forces from the region and paying war reparations.

The demands go further than the ceasefire MOU the US and Iran had previously agreed upon.

Iranian Foreign Minister Abbas Araghchi also met with reporters in Tehran that day, saying mediating countries were working to lay the groundwork for talks, but adding that "there is no possibility of negotiations resuming until the US stops violating the MOU and compensates for those violations."

Trump's remarks signal that, even in the face of Iran's hardened demands, he intends to keep the door open to negotiations while continuing economic pressure rather than escalating militarily in the near term.


mokiya@heraldcorp.com