Iran Says "There Are Currently No Negotiations Between Iran and the U.S.," Trump States He's "Keeping It Low-Key"

Author: Long Yue

There is a clear divergence in how Iran and the U.S. describe the current state of negotiations, and the prospects for reopening the Strait of Hormuz remain uncertain.

According to CCTV News on August 10, U.S. President Trump stated in an interview on the 9th that he is currently "keeping it low-key" regarding the Iran issue. Meanwhile, according to Xinhua News Agency on the same day, Iranian Foreign Minister Araghchi explicitly denied the existence of any direct talks between the two sides, saying, "There are currently no negotiations between Iran and the U.S.," and "information exchange is conducted through intermediaries."

The descriptions of the negotiation status from the two countries are starkly opposite. Neither side is willing to publicly admit that the talks have broken down, yet neither can claim that negotiations are advancing.

The Strait of Hormuz carries approximately one-fifth of the world's oil and natural gas shipments. Since the U.S.-Israeli war on Iran began on February 28 this year, this strategic waterway has been largely closed, leading to volatile oil prices. Last week, Brent crude oil closed above $83 per barrel, with markets continuing to bet on negotiation progress.

Trump: Economic Pressure as Leverage, No Rush for Military Escalation

In his interview, Trump stated, "We're only in 'semi-negotiations' with them. We're just watching Iran's situation. They are facing severe inflation and are short of funds." He said Iran's current economic situation is "very bad," and they "don't even have money to pay for military expenses." He stated that the U.S. maritime blockade has further exacerbated Iran's economic crisis.

Trump described the current U.S.-Iran situation as "like a game of chess," and said, "Things will work out eventually." He hinted that he prefers increasing economic pressure over relaunching large-scale military operations.

This statement is consistent with his repeated actions over the past weeks of threatening large-scale airstrikes against Iran and then calling them off. According to Bloomberg, Trump again called off a new round of military strikes last weekend, citing "progress in negotiations."

Iran: U.S. Violated Memorandum, Resumption of Talks Out of the Question

According to Xinhua, Araghchi clearly stated the direct reason for Iran's refusal to resume talks: "Before the U.S. stops violating the terms of the understanding memorandum and remedies the relevant breaches, Iran sees no possibility for restarting negotiations."

In June this year, Trump and Iran signed a ceasefire understanding memorandum aimed at opening the Strait and paving the way for deeper negotiations. However, the U.S. claimed the agreement subsequently broke down due to continued Iranian attacks on passing ships. Iran attributes the blame to U.S. violations.

Araghchi also said that mediators are still trying to find ways to reopen talks, "Some intermediary countries are working to rebuild the basis for negotiations."

Iran Sets Tough Conditions, Hardliners Set High Bar

On August 8, according to Iran's state news agency IRNA, Iranian Supreme National Security Council Secretary Zolgadr laid out six conditions for reopening the Strait of Hormuz:

1. Never threaten Iran;

2. End all aggression against Iran and its allies;

3. Lift the maritime blockade, withdraw military forces from around Iran;

4. Compensate Iran for all war damages;

5. Lift all sanctions on Iran;

6. Unconditionally unfreeze all Iranian frozen assets.

Zolgadr emphasized: "This is the demand of the Iranian people, who have been chanting in squares and streets for 160 days. The Supreme National Security Council will never back down, whether in war or in negotiations."

According to the Wall Street Journal, the council is dominated by hardliners and reports directly to Supreme Leader Khamenei. The report notes that these conditions are not the official position presented by Iranian negotiators and represent an obviously unacceptable starting point for the U.S., but indicate that the Islamic Revolutionary Guard Corps is setting a high bar for any agreement. Notably, Iranian diplomats in actual contact with mediators have raised more pragmatic demands—reportedly focusing mainly on lifting the maritime blockade, reinstating oil export sanctions waivers, and unfreezing tens of billions of dollars in Iranian funds.

Interim Channel "Close to Agreement," But Unrelated to U.S.

According to Xinhua, Araghchi stated that negotiations between Iran and Oman regarding a new maritime route in the Strait of Hormuz are "progressing well and are currently in the final stages," adding, "I think we are very close to reaching an agreement."

However, he immediately drew a clear line: "Adjusting the maritime route is a technical and legal issue, and does not mean reopening the Strait of Hormuz. Even if an agreement is reached, the opening of the Strait of Hormuz still depends on whether other conditions are met, including compensation from the U.S. for violating the understanding memorandum."

The draft Iran-Oman agreement proposes establishing a new route within the Strait: an inbound lane closer to the Iranian side and an outbound lane closer to the Omani side, with Iran exercising regulatory authority over inbound vessels. Iran also insists on prohibiting U.S. naval warships from passing through the Strait in any agreement. U.S. officials have told mediators they will not accept Iran imposing restrictions on Strait traffic or charging transit fees.

Oman stated that negotiations with Iran are progressing in a "positive and constructive atmosphere" and called on all parties to suspend actions in the Strait to create space for diplomatic efforts.

Situation Worsening, Pressure Emerging Within U.S. Military

According to Bloomberg, the Houthis claimed on the 9th to have attacked the Jizan oil refinery belonging to Saudi Aramco. Saudi authorities had previously reported a fire at the facility, which was quickly extinguished with no casualties. This is at least the second attack on the refinery in the past month.

According to Xinhua, U.S. Vice President Vance on the 8th characterized the U.S.-Iran conflict as the "middle game," stating the war is "clearly no longer in the opening phase," and the U.S. is employing a combination of diplomatic, economic, and military means. He said the key issue is whether Iran is willing to make the "necessary long-term changes"—"If Iran is not willing, the U.S. will continue to apply pressure."

U.S. Chairman of the Joint Chiefs of Staff Dan Kane recently expressed his position of "seeking an exit" from the Iran war in meetings with high-level White House officials such as Vance and Secretary of State Rubio, believing that relying solely on airstrikes is unlikely to achieve all operational objectives. CNN also reported that since the war began, the U.S. military has depleted nearly four-fifths of its THAAD interceptor missile inventory, about half of its Patriot interceptor missiles, and nearly half of its Tomahawk cruise missiles.

And according to Bloomberg, any Strait of Hormuz agreement would require approval from Iran's Supreme Leader Khamenei. Khamenei has not made any public appearances since the war began, but on the 9th, he posted on social media that he had met with President Pezeshkian, and they discussed war and economic issues.