US President Donald Trump said Wednesday that the United States is approaching a decision point on how to proceed with Iran, suggesting that Washington could either launch further attacks or reach an agreement with Tehran.

Asked in the Oval Office how a deal could be reached with Iranian leaders whom he has repeatedly described as "crazy", Trump responded, "Maybe you blow them up. Maybe you blow them up. We have to make that decision. We blow them up, make a deal. But the time is coming. It's going to end very soon, one way or the other. "

Trump also said the United States currently has control over the strategic Strait of Hormuz. "We’re literally running the Strait of Hormuz. We have total control. I guess that’s always subject to change, you know, if they drop one mine."

His remarks came after Iran announced that it had received the latest US response regarding efforts to restore the Gulf ceasefire. Trump had said over the weekend that he rejected Tehran’s proposal.

An Iranian government spokesperson said Wednesday that Iranian Foreign Minister Abbas Araghchi had conveyed the American response to the government in Tehran.

Qatar has been attempting to bridge the gap between the two sides, with its mediators holding separate discussions with American and Iranian representatives in New York last week on the sidelines of a United Nations meeting. The contacts marked the first proximity talks between Washington and Tehran since the previous ceasefire collapsed.

Axios reported Tuesday that the Qatari mediation effort had failed to overcome the differences between the sides, with both Washington and Tehran maintaining their respective positions.

A source involved in the negotiations separately told Channel 13 News that the parties remain a considerable distance from an agreement and that the discussions are increasingly pointing toward renewed confrontation rather than a diplomatic breakthrough.

"The sides are still closer to war than to an agreement," the source said, adding that both sides "have become more rigid."