Trump adopts softer tone on Iran, says US ‘semi-negotiating’ amid Hormuz deadlock

US President Donald Trump has indicated that he is prepared to let economic pressure on Iran mount rather than order a fresh military offensive, even as Tehran has set tough conditions for reopening the Strait of Hormuz.

In an interview with Axios, Trump said the US was "low-keying it" and was only "semi-negotiating" with Iran while watching the country's worsening economic situation.

"We are just watching Iran with its huge inflation and the fact they have no money," Trump was quoted as saying.

He said that Iran was "in very bad shape" economically and could not afford to pay its troops.

Trump also said the US naval blockade had worsened Iran's economic crisis.

His comments mark a shift in tone from just a week ago, when Trump was considering ordering a return to major combat operations.

Trump also appeared unconcerned about Iran delaying an announcement on an agreement with Oman and the US aimed at easing restrictions on shipping through the Strait of Hormuz.

"It will work out. It always works out. It's like a chess game," Trump said.

The proposed arrangement on the strategic waterway has been under discussion among Iran, Oman and the US for several days. Under the plan, Iran would receive partial control over traffic through the strait, according to reports.

However, Tehran has made clear that reopening the waterway is conditional.

Iranian Foreign Minister Abbas Araghchi said negotiations with Oman on "new maritime routes" through the Strait of Hormuz were in their final stages.

"Exchange of messages through intermediaries" with the US was continuing, Araghchi said, but he maintained that this did not amount to negotiations.

According to Araghchi, direct negotiations could resume only after what Iran describes as violations of the interim agreement are addressed and the US "has remedied" provisions it breached.

Iran's Supreme National Security Council on Saturday said the Strait of Hormuz would not reopen until the US "corrects its behaviour".

It demanded that Washington permanently end threats against Iran, bring the war involving Iran and its allied armed groups to an end, lift the naval blockade of Iranian ports and withdraw US forces from the region.

Tehran has also demanded compensation for war damage, the lifting of sanctions and the unconditional release of frozen Iranian assets.

The demands have complicated efforts to reach an agreement on restoring shipping through the strait, one of the world's most important energy transit routes.