US President Donald Trump said Sunday that the US is taking a low-key approach toward Iran for now, signaling that he is prepared to allow economic pressure on the Islamic Republic to increase rather than order a new military offensive.
In a brief phone interview with Axios, Trump said the US is only "semi-negotiating" with Iran while watching the country's worsening economic situation.
"We are low-keying it," Trump said.
Trump said Iran is "in very bad shape" economically and does not have the money to pay its troops. He added that the US naval blockade has intensified the regime's economic crisis.
At the same time, Trump said US consumers are experiencing less economic pressure from the war as oil prices have fallen to slightly above $75 per barrel.
"It will work out. It always works out. It's like a chess game," Trump said.
The comments come as Iran continues to delay an agreement involving Iran, Oman, and the US concerning the reopening of the Strait of Hormuz. Under the proposed agreement, Iran would receive partial control over traffic through the strategic waterway.
Iran's Supreme National Security Council chief, Mohammad Bagher Zolghadr, announced new conditions Saturday for reopening the strait. Among them, he demanded that the US permanently end the war against Iran and its allies, lift the naval blockade, withdraw military forces from around Iran, and compensate Iran for war damages.
Iran also demanded the lifting of all sanctions and the release of frozen Iranian funds.
The demands had previously been presented as conditions for a nuclear agreement, but Iran is now making them conditions for reopening the Strait of Hormuz.
US officials have said Trump was leaning toward resuming major combat operations against Iran a week ago but ultimately decided to de-escalate for now.
One US official said the fighting had allowed the Iranian regime to avoid confronting the damage to infrastructure and the country's deepening economic crisis. Without the war, the official said, Iran is forced to confront the economic situation directly.
The official also said approximately 8 million barrels of oil are leaving the Gulf each night through the southern lane of the Strait of Hormuz in coordination with the US military, and that the US will seek to increase the flow as long as no agreement is reached.
Vice President JD Vance said Saturday that the conflict is ongoing and that the US is using diplomatic, economic, and military tools to secure the best outcome for the American people.