President Donald Trump predicted Sunday that oil prices would fall sharply once the war with Iran ends, as senior U.S. and Iranian officials traded accusations over why a proposed seven-day ceasefire and reopening of the Strait of Hormuz failed to gain traction.
Trump, speaking to reporters before traveling to the Chicago area for the Presidents Cup golf tournament, said a record amount of oil had moved through the Strait of Hormuz overnight and predicted prices would fall “as soon as Iran gives up, as soon as the war is over, which will be soon.”
The competing claims underscore how far Washington and Tehran remain from an agreement despite continued diplomatic overtures. Iran says it is prepared to reopen the Strait of Hormuz and return to nuclear talks if the United States eases sanctions and its blockade, while the Trump administration says Tehran must first demonstrate it can be trusted to honor an agreement and address concerns about its nuclear program.
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U.S. Ambassador to the United Nations Mike Waltz said Sunday on NBC’s “Meet the Press” that the administration rejected Iran’s latest proposal in part because Tehran sought access to billions of dollars in frozen funds and relief from sanctions. Waltz argued that Iran had failed to comply with international requirements surrounding its nuclear program and said the administration had little confidence Tehran would follow through on another agreement after what he described as Iran’s violation of a memorandum of understanding reached earlier this year.
“At the end of the day, of course, this has to end in some type of arrangement,” Waltz said, adding that Trump would “leave all options on the table to get there.”
Iranian Foreign Minister Abbas Araghchi disputed the U.S. account in a separate interview on “Meet the Press,” saying Washington, not Tehran, had violated the earlier agreement. Araghchi said Iran remains prepared for both diplomacy and further fighting and defended Tehran’s seven-day proposal. Under the plan, he said, the United States would take several steps sought by Iran before trade through the strait reopened on the sixth day and broader negotiations resumed on the seventh.
“We are ready for diplomacy. We are ready for war at the same time,” Araghchi said.
Trump rejected the Iranian proposal Saturday, saying Tehran wanted an agreement because it was “losing so badly.”
“They want to make a deal and I think that’s fine,” Trump said. “I’d like to make a deal, too. But that deal would not be acceptable.”
Araghchi said Iran’s offer would reopen the strategic waterway and restart nuclear negotiations if Washington lifted its maritime blockade, eased sanctions on Iranian oil exports and observed a ceasefire that included Lebanon.
The Strait of Hormuz is a major route for global oil and commodity shipments. Iran effectively closed the waterway after the United States and Israel attacked the country in late February, and shipping traffic has fallen amid Iranian threats and attacks on vessels. The dispute also continues to center on Iran’s nuclear program.
Waltz said Iran had dispersed highly enriched uranium and accused Tehran of failing to provide sufficient international oversight of its nuclear activities. He said the United States remains focused on preventing Iran from developing a nuclear weapon. Araghchi maintained that Iran’s enrichment of uranium to 60% is permitted under the Nuclear Non-Proliferation Treaty and is intended for peaceful purposes. He said Iran has previously offered to negotiate over its stockpile and could do so again if Washington demonstrates what he called a genuine commitment to peace.
The International Atomic Energy Agency has raised concerns about Iran’s nuclear activities and its cooperation with inspectors. Waltz said the dispute is one reason the administration is unwilling to provide significant sanctions relief merely to restart negotiations.
The possibility of renewed U.S. military action is also hanging over the negotiations. The Wall Street Journal reported Saturday, citing U.S. officials, that Trump has told aides he expects U.S. bombing of Iran to resume after the November midterm elections, although the officials said his position could change as the conflict develops. The Journal also reported that U.S. and Iranian officials continue to communicate through regional mediators. Asked about that report, Waltz declined to confirm it and said Trump would keep “all options on the table.”
Araghchi said Iran is preparing for the possibility of renewed attacks.
“We are fully prepared for the time for the war to be resumed,” he said, while adding that Tehran remains open to diplomacy.
The Trump administration is also pointing to mounting economic pressure as a reason it believes Iran could eventually accept a deal. Treasury Secretary Scott Bessent said on Fox News’ “Sunday Morning Futures” that China has substantially reduced assistance to Iran and predicted Tehran would soon have little oil left to trade. He said U.S. sanctions, banking restrictions and the blockade have increasingly isolated Iran from the global economy.
Bessent said the administration’s strategy combines military action, the blockade and what he called “Operation Economic Outcast,” an effort to further restrict Iran’s access to banks, transportation networks and international commerce.
“My job is to make sure that when they come with a deal, that they want to stick to it,” Bessent said.
Trump, meanwhile, argued Sunday that oil is continuing to move through the Strait of Hormuz despite the conflict.
“Last night, we took a record amount of oil out from the Hormuz Strait, more than we took out before the war,” Trump said.
Neither side, however, indicated Sunday that an agreement was imminent. Iran continues to seek sanctions and blockade relief as part of any ceasefire, while the Trump administration says Tehran must address its nuclear activities and demonstrate that it will comply with any new agreement.