Live Updates: Trump says U.S. only "semi-negotiating" with Iran after Tehran sets demands to reopen Strait of Hormuz

President Trump said on Sunday that the U.S. is "low-keying" negotiations with Iran and signaled a willingness to allow economic pressure to mount on the Islamic Republic. "We are only semi-negotiating with them. We are just watching Iran with its huge inflation and the fact they have no money," Mr. Trump told Axios during a phone interview. He said Iran is in "very bad shape" and that the U.S. blockade on the Strait of Hormuz has exacerbated the country's economy. "It will work out. It always works out. It's like a chess game," Mr. Trump said. Iranian Foreign Minister Abbas Araghchi said there is an exchange of messages through intermediaries, but this is not called negotiations. Iran's politburo-like body known as the Supreme National Security Council said the Strait of Hormuz will not open until the United States "corrects its behavior," issuing new demands that could shake up talks on a deal to manage the waterway and traffic on it. Iran's state broadcaster published the statement by the council's secretary, Mohammad Bagher Zolghadr, who is also a commander in the powerful Revolutionary Guard. The U.S. must never threaten Iran again, the statement said, and must permanently end the war with Iran and its armed allies in the region. The U.S. must lift the naval blockade of Iranian ports and withdraw its military from the area. It also must "completely compensate" Iran for war damage, lift sanctions and "unconditionally" release frozen assets. Iranian-backed Houthi rebels in Yemen attacked the government-held port city of Mocha late Sunday night. It was the second attack on the Red Sea coast city in less than 24 hours. Yahya Saree, a Houthi military spokesperson, said they also targeted an Aramco refinery in the Saudi city of Jazan with a drone in response to Saudi drones breaching Yemen's airspace over Hajjah and Saada provinces.