President Donald Trump announced that the United States is adopting a more "low-key" approach in its dealings with Iran, signaling a shift away from direct military confrontation towards intensified economic pressure.
"We are only semi-negotiating with them," Trump told Axios on Sunday. "We are just watching Iran with its huge inflation and the fact they have no money."
Trump asserted that Iran is in a precarious financial state, lacking the funds to pay its troops. He attributed this situation, in part, to a U.S. naval blockade. "It will work out. It always works out. It's like a chess game," he added.
This statement follows reports of a potential deal between Iran and Oman regarding the management of the Strait of Hormuz. The agreement, which was close to finalization, would have granted Iran partial control over traffic in the strategic waterway. The strait has experienced significant disruptions since the conflict with Iran began in late February.
Iran's Supreme National Security Council stated on Saturday that the strait would not reopen until the U.S. "corrects its behavior." Tehran also indicated that vessels associated with "hostile countries" would be barred from passage. Iran presented a list of demands, including a permanent end to the conflict, the lifting of the naval blockade on its ports, and the withdrawal of American military forces from the region. Furthermore, Iran demanded full compensation for war damages, the removal of sanctions, and the unconditional release of frozen assets.
While Trump did not directly address Iran's demands, Iranian Foreign Minister Abbas Araghchi confirmed that no ongoing negotiations are occurring between Washington and Tehran. A 60-day period for negotiating a final deal is set to conclude in slightly over a week, with the possibility of an extension.
In parallel developments, Israeli Prime Minister Benjamin Netanyahu rejected a deal Trump had recently announced concerning Gaza. Netanyahu stated that Israel's military "will not carry out any withdrawal until Hamas is genuinely disarmed," despite Trump's assertion that Israeli forces would withdraw as Hamas disarmament is completed. Hamas, through Bassem Naim, a member of its political bureau, expressed commitment to the roadmap and expects mediators and the U.S. to pressure Netanyahu. Netanyahu is also facing domestic political pressures ahead of elections scheduled for October 27.
Separately, Iranian-backed Houthi rebels in Yemen launched an attack on the government-held port city of Mocha late Sunday night, marking the second such attack in less than 24 hours. A military source told Houthi-controlled Al-Masirah TV that the assault targeted weapons depots and Saudi troop concentrations. The Yemeni government-allied National Resistance Forces reported that at least seven people, including four troops and three civilians, were killed and 15 civilians injured in the strike. The attack reportedly caused significant damage to port buildings, piers, and commercial goods. Mocha serves as a key port for Yemen's internationally recognized government and has been important for shipping that bypasses the Houthi-controlled port of Hodeida.