US President Donald Trump has instructed his negotiating team to freeze talks with Iran for several weeks, with the possibility of extending the suspension, as the chances of reaching an agreement have become increasingly slim, Al Arabiya reported.
According to sources cited in the report, Trump told his negotiating team that he believes the prospects for an agreement with Iran have weakened.
The report also stated that the administration has received intelligence regarding an Iranian plan to resume attacks on ships, as well as information about a possible Houthi escalation in the Bab el-Mandeb Strait.
The administration has further received information about an Iranian plan to carry out operations beyond attacks on shipping, according to sources cited in the report.
According to the report, Trump has told his team that intensive attacks against Iran could be launched if economic pressure fails.
The developments come after Trump announced overnight (Wednesday) that the United States would launch what he described as an unprecedented campaign of economic warfare and isolation against Iran.
In a post on Truth Social, Trump said Iran had failed to take advantage of what he called a major opportunity to reach a deal with Washington.
"No one has given the Islamic Republic of Iran a greater opportunity to make a Deal than me. TRAGICALLY, for them, they have failed to take it," he wrote.
Trump announced what he called the "MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY," describing it as "Economic Warfare and Isolation on an unprecedented scale."
He warned that countries, financial institutions and businesses that provide economic assistance to Iran could face severe consequences from Washington. He specifically called for an end to oil smuggling, financial swap arrangements, cash transfers, exchange-house operations, ship registries and the use of front companies to support Iran.
Calling the campaign an "ECONOMIC D-DAY," Trump urged US allies to join Washington in isolating Iran.
Trump also said that Iran's military capabilities had already suffered major damage, claiming that its navy was gone, its air force destroyed and its military factories reduced to rubble. He reiterated that Iran would not be allowed to obtain a nuclear weapon.
The announcement came after Trump said earlier that the strategic importance of the Strait of Hormuz could decline as alternative energy infrastructure expands.
"Record numbers of pipelines are being built. So I think the Hormuz Strait is not going to be quite as important as it was in the past," Trump said.
Asked about possible sanctions against Iran, Trump said the United States had "very draconian sanctions" available.
Trump had also said Tuesday that there were no talks or conversations underway or scheduled with Iran as the 60-day negotiating window came to an end. He said the US naval blockade remained in force and that the Strait of Hormuz was open and operating.
His statement appeared to conflict with previous comments in which he indicated that a secret channel between Washington and Iran's Islamic Revolutionary Guard Corps was being used for peace discussions. The IRGC denied that such a channel existed, while Iranian Foreign Ministry spokesperson Esmaeil Baghaei separately rejected reports of undisclosed contacts between the United States and the IRGC.