US President Donald Trump said on Wednesday that Iran was eager to reach an agreement with Washington, but stressed that his administration remained dissatisfied with the terms currently under discussion.
Speaking during a full cabinet meeting at the White House, Trump said Iran’s economy was under severe strain and suggested Tehran had limited options other than pursuing a deal with the United States.
“They just want to make a deal. I don’t think they have a choice,” Trump told cabinet members and reporters.
“Their economy is in free fall. Their money has no value, their whole economic system has broken down.”
The remarks came as Washington and Tehran continued indirect negotiations aimed at preserving a fragile ceasefire and reducing the risk of a broader regional conflict in the Middle East.
Diplomats familiar with the discussions said negotiators had made progress on a proposed memorandum of understanding (MoU) intended to create conditions for wider talks on Iran’s nuclear programme and regional security issues.
According to officials involved in the process, much of the document had reportedly been agreed over the weekend, raising hopes of an early deal that could help reduce tensions around the Strait of Hormuz, a critical global oil shipping route.
Earlier on Wednesday, Iranian state broadcaster Islamic Republic of Iran Broadcasting reported that Tehran had obtained a draft of an unofficial framework for the proposed agreement.
Under the reported framework, Iran would restore commercial shipping through the Strait of Hormuz to pre-conflict levels within one month, while the United States would withdraw military forces from areas near Iran and lift a naval blockade.
Iranian state television also said the proposal excluded military vessels and envisaged Iran managing commercial shipping traffic through the strait in cooperation with Oman. It added that Tehran would not take steps under the agreement without what it called “tangible verification.”
The report further claimed that a final agreement reached within 60 days could potentially be endorsed through a binding resolution of the United Nations Security Council.
The White House swiftly rejected the Iranian media reports, calling them “not true” and describing the reported MoU as “a complete fabrication.”
The cabinet meeting highlighted growing concern within the Trump administration over rising tensions in the Middle East, including security risks in the Gulf and the impact of instability on global energy markets.
While the White House did not release an official agenda for the meeting, discussions were expected to focus heavily on Iran, Gulf security, oil supply routes and broader US regional strategy.
US Secretary of State Marco Rubio has said disagreements still remain over parts of the proposed document, with officials warning that even small wording disputes could derail the process, as happened with previous agreements between Washington and Tehran.
The ceasefire linked to the negotiations has now entered its eighth week but remains fragile.
Iran has warned it could respond to recent U.S. military operations, while clashes involving Israel and Hezbollah have intensified along the Lebanese border, increasing fears of a wider regional conflict.
An official from Iran’s Revolutionary Guards said on Wednesday that renewed war with the United States was unlikely, though Tehran remained prepared to respond to any attack.