President Donald Trump stated Sunday that the United States is engaged in “semi-negotiating” with Iran, a day after Iranian state media reported that no formal negotiations were taking place between the two nations. Trump described the situation as "low-key" in a phone call with Axios.

"We are only semi-negotiating with them. We are just watching Iran with its huge inflation and the fact they have no money,” Trump said, according to Axios. He added that Iran "is in very bad shape” economically and lacks the funds to pay its troops, suggesting that a U.S. naval blockade has worsened the country's economic crisis.

Iran confirmed earlier Sunday that "messages were being exchanged" through intermediaries but stopped short of calling them negotiations. Trump expressed confidence that the situation would resolve, likening it to a “chess game.”

"It will work out. It always works out. It's like a chess game," the president stated, according to Axios.

Earlier this year, on Feb. 28, President Trump announced what he termed "major combat operations" against Iran, involving extensive joint U.S.-Israeli strikes.