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Trump Calls Iran Talks 'Last Chance' as Strait of Hormuz Reopening Tops Agenda

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US President Donald Trump said Monday that Iran negotiations are continuing after he delayed planned military action, calling the talks Tehran's "last chance" while prioritizing reopening the Strait of Hormuz.

The president made the remarks while speaking to reporters after signing an executive order at the White House.

Trump said US and Iranian officials currently remain in talks despite Tehran's earlier public denials. "We're talking, and we're talking at the request of Iran, backed by Saudi Arabia, backed by UAE, and backed by Qatar in particular, but others also," he said.

He said the US had prepared a major military strike before postponing the operation after Iran sought negotiations.

"We were going to hit them very hard yesterday [Sunday]...," he said, adding, "... this is a last chance for them to sign a good document."

Trump said he still has military options available but prefers diplomacy. "I want to give them every last chance before decapitation," he added.

Trump said reopening the Strait of Hormuz remains the immediate priority. "We're talking about the Strait... having it open literally by tomorrow, completely open, and that's phase one," he said.

He said negotiations would then shift to Iran's nuclear program. "The second phase will be the denuclearization and that'll take a little while," Trump said.

Asked whether Iran could impose transit charges in the Strait of Hormuz, Trump rejected the idea. "I'm not going to let them charge," he said.

"If anybody's going to charge, we'll charge," Trump said, adding the US has "total control" of the waterway.

Trump also linked a potential agreement with lower energy prices. "You're going to see oil, when we're finished with Iran, you're going to see the prices drop through the floor," he said.

He criticized major US oil producers for reporting strong earnings. "They're making too much money... they better cut the retail price, the consumer price," Trump said of Exxon Mobil (XOM) and Chevron (CVX).

Trump also urged the UK to expand North Sea oil production, arguing the country could sharply reduce energy costs.

"You could cut them [prices] in half. You could give away free energy if you'd open up the North Sea ...," he said.

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