Trump Signals Iran Sanctions Could Be Lifted: Washington Demands Nuclear Concessions First.

President Donald Trump is willing to offer Iran sanctions relief and unlock frozen Iranian funds as part of a potential agreement, but only if Tehran makes "concrete progress" on its nuclear program, a U.S. official said.

The United States and Iran are engaged in what the official described as "positive and constructive discussions through the mediators," but Washington has made clear that there will be no final agreement without movement on nuclear issues. The comments were first reported by CNN.

Trump rejected Iran's latest proposal on Saturday, calling it "unacceptable." The Iranian offer was aimed at reopening the Strait of Hormuz, the strategically critical waterway that has become a central point in negotiations between Washington and Tehran.

Despite that rejection, talks do not appear to have collapsed. Trump told Axios on Sunday that he expects additional negotiations with Iran this week. According to the U.S. official cited by CNN, special envoy Steve Witkoff, Jared Kushner, Vice President JD Vance and Secretary of State Marco Rubio are leading the American negotiating team.

"They want to make a deal, but it is not the deal that I want to make," Trump told Axios. "It is what we would have maybe agreed to a year ago. They overplayed their hand." Iran has indicated flexibility on nuclear issues, according to the U.S. official, but Washington and Tehran have yet to agree on the timing and sequencing of their respective commitments.

U.S. Ambassador to the United Nations Mike Waltz outlined that concern Sunday, saying Iran was seeking substantial benefits at the beginning of the process rather than tying them to subsequent actions.

"The bottom line is they were asking for everything up front with a promise that they would then talk," Waltz told CNN's "State of the Union." He said Iran was seeking relief from sanctions as well as access to billions of dollars in frozen assets.

Waltz also argued that Washington remains skeptical of Iranian commitments because the administration says Tehran violated a memorandum of understanding reached in July by attacking commercial shipping.

The broader negotiations are also tied to efforts to reopen the Strait of Hormuz. Officials familiar with mediation efforts told the Associated Press that discussions were continuing Monday, with Qatar playing a mediating role. A draft under discussion would involve reopening the strait and lifting the U.S. blockade before sanctions are removed, according to the AP.

The waterway is one of the world's most important energy corridors, and disruptions have contributed to elevated oil prices and broader concerns about global energy supplies. Brent crude has climbed above $108 a barrel amid the conflict and repeated unsuccessful attempts to restore normal shipping through the strait.

Trump has repeatedly insisted that preventing Iran from obtaining a nuclear weapon remains Washington's central objective. Last week, he said negotiations with Tehran were continuing while reiterating that Iran would not be allowed to acquire nuclear weapons.