Trump says 'low keying it' with Iran as Tehran adds new Strait demands

President Donald Trump has signaled a deliberate de-escalation of military tensions with Iran, telling Axios that the U.S. is 'low keying it' as Tehran adds new conditions for reopening the strategic Strait of Hormuz. The remarks, made during a brief phone call, come just a week after Trump was reportedly close to ordering a return to major combat operations.

Trump Puts Economic Pressure First

Trump said the U.S. is only 'semi-negotiating' with Iran and prefers to let economic pressure mount. He highlighted Iran's 'huge inflation' and lack of money, noting that the regime cannot even pay its troops. The U.S. naval blockade has made the economic crisis worse, he added. With oil prices at slightly over $75 a barrel, Trump also pointed out that American consumers are feeling less pain from the war. 'It will work out. It always works out. It's like a chess game,' he said of the back-and-forth.

Yet only a week earlier, Trump appeared ready to escalate military action. A U.S. official said the president was leaning toward resuming major combat operations but was convinced to de-escalate for now. The same official noted that wartime conditions have allowed Iran's leadership to avoid facing the consequences of its decisions. When Iran is not fighting, it is forced to confront a grim reality with no real solutions at hand.

Strait of Hormuz Deal in Jeopardy

An agreement among Iran, Oman, and the U.S. to govern traffic through the Strait of Hormuz has been pending for days. Under the deal, Iran would gain partial control over traffic—something it did not have before the war. Qatari and Pakistani mediators had been confident of a Wednesday announcement, but its prospects have since faded.

On Saturday, Iran's top security official, Mohammad Bagher Zolghadr, laid out new terms for reopening the strait, going beyond the Oman agreement. He demanded that the U.S. never threaten or insult Iran, permanently end all hostilities against Iran and its allies in Lebanon, Gaza, Yemen, and Iraq, lift the naval blockade, and withdraw military forces from around Iran. He also called for full compensation for war damages, removal of all sanctions, and release of Iranian frozen funds. Until recently, these were prerequisites for a nuclear deal; now they are conditions for simply reopening the waterway.

Iran's Leadership Split

U.S. officials describe growing rifts inside the Iranian regime. President Masoud Pezeshkian is reportedly very worried about an economic collapse and believes Iran must reach an accord with Washington. But Ahmad Vahidi, commander of the Islamic Revolutionary Guard Corps, rejects any concessions. Zolghadr's statement, according to a diplomat from one of the mediating countries, reflects this political infighting.

The competing factions are struggling to respond to the U.S. pressure campaign. For now, the hardliners appear to be setting the agenda, using the strait reopening as a bargaining chip for far broader demands. That complicates the path to any deal and raises the risk of continued instability in the region.

What's Next

Despite the standoff, Washington is coordinating with partner forces to keep oil flowing. Around 8 million barrels of crude exit the Gulf nightly through the southern lane of the Strait of Hormuz, overseen by the U.S. military. The administration seems prepared to maintain economic pressure and wait for Iran's crisis to worsen. But the internal power struggle in Tehran means a diplomatic breakthrough is uncertain. If the hardliners continue to block an agreement, the possibility of renewed military action could return quickly.