President Donald Trump has issued a stark warning to Iran, stating that ongoing negotiations represent the nation's "last chance" to secure a deal and avoid a significant escalation of U.S. military action. Trump described halting a planned U.S. strike, which he characterized as the largest since World War II, due to these diplomatic overtures. However, the status of these talks remains unclear, with Iran denying direct negotiations with the U.S. and disputing the scope of discussions mediated by Oman.

Trump stated that indirect talks could lead to the reopening of the Strait of Hormuz and subsequently address Iran's nuclear program. He indicated that an agreement would proceed in two phases: first, securing passage through the Strait, followed by denuclearization. "The first phase is the opening of the straits. The second phase will be the denuclearization," Trump said in the Oval Office. He suggested that further details about the negotiations would be available soon.

Iranian Foreign Ministry spokesman Esmail Baghaei, however, countered that Tehran is not engaged in talks with the United States nor expecting an American delegation. Baghaei characterized the discussions involving Oman as a bilateral effort focused on establishing a temporary shipping corridor through the Strait. In response to these claims, Trump accused Iran's leadership of being "unbelievably duplicitous."

Ali Vaez, deputy program director for the Middle East at International Crisis Group, noted that while there are no direct U.S.-Iran meetings, engagement appears to be ongoing. "There’s certainly an element of posturing involved," Vaez told Fox News Digital. "While there are no ‘talks’ in the sense of U.S. and Iranian officials sitting at the same venue exchanging proposals and counter-offers, engagement appears ongoing."

Saudi Arabia and other Gulf allies have reportedly urged Trump to refrain from a large-scale attack, citing concerns about potential Iranian reprisals. Jonathan Schanzer, executive director of the Foundation for Defense of Democracies, suggested these regional concerns complicate the U.S. president's options. "He’d like to be able to walk away with a win. The Iranians are not allowing him to do that," Schanzer told Fox News Digital. "There is not a clear path ahead for him at this moment."

The Strait of Hormuz has been a focal point in past U.S.-Iran disputes. A June memorandum aimed to halt fighting, lift a U.S. blockade, and reopen the Strait, but disagreements over restoring commercial traffic quickly emerged. Incidents involving commercial vessels and subsequent U.S. strikes highlighted the divergence in approaches, with each side accusing the other of intransigence.

Earlier ceasefires have been characterized by brief periods of calm followed by renewed conflict. The current situation, where Iran can potentially threaten shipping and the U.S. maintains its blockade and strike capabilities, creates a dynamic where neither side may feel compelled to make concessions. "Fundamentally, both sides know that the status quo is a recipe for continued military and economic attrition without a clear endgame," Vaez commented.