US 'low-keying it' with Iran, says Trump

US President Donald Trump has stated that the US is 'low-keying it' with Iran, relying on economic pressure rather than new military strikes. Trump said the US is 'only semi-negotiating' with Iran, citing the country's significant inflation and lack of financial resources.

The economic pressure on Iran is evident, with the country experiencing huge inflation and difficulty paying its troops. Trump expressed his optimism that a satisfactory conclusion would eventually be reached, comparing the situation to a 'chess game'. The US naval blockade in place since April has deepened the pressure on Iran, and falling oil prices, now just above $75 a barrel, have eased the economic impact on American consumers.

Meanwhile, Israeli Prime Minister Benjamin Netanyahu has rejected Trump's 15-point plan for Gaza, stating that Israeli troops will not withdraw until Hamas is fully disarmed. Netanyahu's rejection signals another blow for Trump's Gaza peace plan, which was announced in September last year. The plan included the creation of a board to oversee the agreement's implementation, as well as the disarmament of Hamas, withdrawal of Israeli troops, and reconstruction of Gaza.

The US and Iran are in talks mediated by Oman over reopening the Strait of Hormuz, with Iran's foreign ministry saying that the talks have reached their 'final' stages. However, Iran's Supreme National Security Council has insisted that the Strait of Hormuz will not reopen until the US 'corrects its behaviour', which includes demands to lift the naval blockade, halt military actions, and pay war damages.

The Pentagon has urged the US defense industry to accelerate weapons production and delivery, with the US having fewer than a certain number of weapons in stock at the end of July. This move comes as the US continues to monitor the situation with Iran and its impact on the region.

What happens next The situation with Iran and the US remains uncertain, with talks ongoing and economic pressure continuing to mount. The rejection of Trump's Gaza peace plan by Netanyahu adds another layer of complexity to the region, with the US and its allies seeking a resolution to the conflict. As the situation continues to unfold, the US will likely maintain its cautious approach, relying on economic pressure to push Iran towards a deal.