Trump says U.S. "semi-negotiating" with Iran after Tehran sets new demands

President Trump indicated that the United States is "low-keying" negotiations with Iran, suggesting a willingness to let economic pressure on the Islamic Republic intensify. "We are only semi-negotiating with them. We are just watching Iran with its huge inflation and the fact they have no money," Trump told Axios in a phone interview.

Trump asserted that Iran is in "very bad shape," with the U.S. blockade on the Strait of Hormuz exacerbating its economic woes. He expressed confidence that the situation "will work out. It always works out. It's like a chess game," he said.

Meanwhile, Iranian-backed Houthi rebels in Yemen launched two attacks on the government-held port city of Mocha within 24 hours. A Houthi military source claimed the attacks targeted weapons depots and Saudi troop concentrations. However, the Yemeni Armed Forces stated that residential neighborhoods were hit by missiles and drones, with some intercepted by air defense systems.

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We are only semi-negotiating with them. We are just watching Iran with its huge inflation and the fact they have no money.

The attacks on Mocha, a key port for shipping that bypasses the Houthi-controlled port of Hodeida, resulted in at least seven deaths and 15 injuries, according to the Yemeni government-allied National Resistance Forces. The attacks also caused significant damage to port buildings, piers, and commercial goods.

In a separate development, Israeli Prime Minister Benjamin Netanyahu rejected the U.S.-Gaza peace plan, vowing to remain in Gaza until Hamas "genuinely" disarms. Trump had previously hailed the plan as "historic."

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It will work out. It always works out. It's like a chess game.