Trump says U.S. is ’low-keying it’ with Iran as its economy struggles

Investing.com -- President Trump reportedly indicated Sunday that he is willing to let economic pressure on Iran continue building rather than order a fresh military strike, even as Tehran keeps defying Washington.

"We are low-keying it," Trump told Axios during a phone call. "We are only semi-negotiating with them. We are just watching Iran with its huge inflation and the fact they have no money." 

He said Iran "is in very bad shape" economically and lacks the funds to pay its troops, adding that the U.S. naval blockade has deepened the regime’s economic troubles.

Trump also noted that with oil prices down to just over $75 a barrel, American consumers are feeling less strain from the conflict.

"It will work out. It always works out. It’s like a chess game," he said, describing the standoff with Iran.

Trump’s comments come after Iran said reopening the Strait of Hormuz would require compensation from the United States, an end to sanctions and the naval blockade of Iranian ports, the release of frozen assets and the withdrawal of U.S. forces from around the country, Bloomberg reported.

Foreign Minister Abbas Araghchi said an agreement with Oman on a temporary maritime route for ships entering and leaving the Persian Gulf was “very close.” He cautioned that such an arrangement would not automatically restore unrestricted commercial navigation through the strait.

“The opening of the strait is subject to other conditions, including compensation for the U.S.’s violations of the Islamabad Agreement,” Araghchi said, referring to a June memorandum that collapsed within a month amid disagreements over control of the waterway.

Any final agreement would require approval from Supreme Leader Mojtaba Khamenei. Iranian officials have said reaching him can take time, and there has been no confirmation that he has approved the current proposal.

The demands complicate earlier U.S. expectations that an Iran-Oman deal could soon restore normal oil traffic. Washington had said it would lift its blockade of Iranian ports after commercial shipping resumed without obstruction.

U.S. Vice President JD Vance acknowledged progress but questioned whether Tehran would offer terms acceptable to Washington.

Oman said negotiations were continuing in a “positive and constructive atmosphere” and urged all parties to halt actions in the strait while diplomacy continued.

The route normally handles around one-fifth of global oil consumption but has been largely blocked since the U.S. and Israel launched the war against Iran on February 28. Some vessels have continued operating through a limited shuttle programme involving U.S. military assistance.

Shipping risks remain high. Abu Dhabi National Oil Company said missiles targeted one of its vessels early Saturday, though no injuries were reported. The company previously said 15 of its ships had been attacked during the conflict, killing one crew member and injuring 20.

Brent crude settled above $83 a barrel last week as traders weighed the potential return of millions of barrels of Gulf supply against continuing attacks.

Yemen’s Iran-aligned Houthis also claimed a drone strike on Saudi Aramco’s 400,000-barrel-a-day Jazan refinery on Sunday. Saudi authorities said firefighters extinguished the resulting blaze and reported no injuries.

The attack followed another strike on the Jazan complex in July. Aramco Chief Executive Amin Nasser said recent incidents caused temporary production interruptions but had no material operational or financial impact.

Saudi Arabia signed a collective defence pact with Turkey and Pakistan on Friday, under which an attack on one member is treated as an attack on all three, amid growing concerns about regional escalation.

Vahid Karaahmetovic contributed to this report.