Trump Rejects Iran Deal: New Military and Economic Pressure Timeline Set

US President Donald Trump has rejected a proposal put forward by United States Special Envoy Steve Witkoff to renew negotiations with Iran – mediated by Saudi Arabia and Oman – and has instead chosen an “active approach” that prioritizes severe economic and military pressure over renewed dialogue with the current regime in Tehran.

Smoke in Iran following the Israeli strikes in June 2025 (Getty Images; AFP)

Israel Hayom recently revealed internal administration disagreements between the Witkoff camp – a stance shared by senior advisor and son-in-law Jared Kushner – which favors negotiation, and those advocating continued active pressure. Two diplomatic sources intimately familiar with the matter told Israel Hayom that a concrete, secret proposal for restarting talks was indeed on the table, driven by the altered strategic landscape following the war with Israel.

According to these sources, Saudi Arabia was a partner in the proposal alongside Oman – which hosted the previous round of negotiations. The Saudis are seeking to minimize risks to their oil facilities, a threat the Iranians have explicitly voiced. The proposal, according to officials, discussed freezing the nuclear program and maintaining 400 kilograms (881 pounds) of enriched uranium under tight international supervision.

However, opponents within the administration – led by United States Secretary of State Marco Rubio and United States Secretary of Defense Pete Hegseth – raised significant counter-arguments during discussions. They cited the regime’s chronic lack of credibility, its role as a fomenter of war and terror, and the critical issue of ballistic missiles, which Iran refuses to discuss.

During a meeting last week between Prime Minister Benjamin Netanyahu and Trump, as well as in subsequent sessions, Military Secretary Major General Roman Gofman – who is designated to be the next head of the Mossad – presented a comprehensive intelligence dossier detailing the regime’s activities. The file covered the nuclear program and efforts to revive it, the ballistic missile array currently undergoing rehabilitation and expansion, Iran’s global terror network – including cells in Europe and South America – and its support for proxy terror organizations, led by Hezbollah, Hamas, and the Houthis.

The overarching goal of the visit to Florida was to demonstrate that any agreement with Iran would be temporary and prone to violation, and that a genuine resolution to the problem is required.

US President Donald Trump (R) and Israeli Prime Minister Benjamin Netanyahu shake hands as they arrive to speak to journalists during a joint press conference at Trump’s Mar-a-Lago residence in Palm Beach, Florida, on December 29, 2025 / Jim WATSON / AFP

This Iran dossier also presented the specific intentions of Tehran and its terror proxies to strike American targets and interests, not just in the Middle East. Against the backdrop of these discussions, riots have erupted across Iran, coinciding with the administration’s deliberation on whether and how to assist the demonstrators. The president’s remarks on Saturday – stating that “if the regime continues to shoot and kill peaceful protesters, the United States will come to their aid” – alongside social media posts declaring the US is “locked and Loaded” in response to regime violence, indicate that Trump has already made a decision. The only remaining questions are how and when.

Diplomatic sources indicate that all response options are on the table. While an operation similar to the abduction of Venezuelan President Nicolas Maduro may be less suitable for the Iranian context, the rhetoric sends a clear message: This administration, and the President leading it, are capable of executing actions that previous administrations hesitated to consider.

According to a senior Israeli official, Jerusalem and Washington have been handling the Iran file with close cooperation and intelligence sharing, even prior to the meeting at Mar-a-Lago. Now, however, there is a detailed timetable for conduct vis-à-vis Iran. regarding the nuclear issue, possible responses have been determined based on the progress of Iran’s attempts to rehabilitate various sites – including enrichment facilities. It was such progress that led to the outbreak of the war in June, coordinated with the Americans, and Trump’s participation in the move via the B-2 bombing of Fordo (a nuclear fuel enrichment plant).

Iranian Supreme Leader Ayatollah Ali Khamenei praying inside the tomb of Iran’s late founder (background: the protests in Iran in 2026) / EPA/IRANIAN SUPREME LEADER OFFICE

An equally critical issue is the ballistic missile array. Iran has placed special emphasis on this program, as it has proved to be the weapon capable of inflicting the most damage on Israel. On this front, the administration has been convinced of the need to set red lines for Iran. This includes the construction of missile production and assembly factories, as well as shipments of raw materials and components, primarily from China.

Beyond the military option, the economic path remains one of the primary methods to precipitate the regime’s collapse or at least significantly weaken it. Even now – partly due to sanctions – the Rial (the Iranian currency) has plunged to a record low, resulting in a dramatic price surge for many basic goods.

Studies and assessments indicate that more than half the Iranian population lives below the poverty line. Unemployment is in the double digits, power is rationed to a few hours a day, and only the winter rains of recent weeks have saved the population from thirst.

The crisis shows no sign of abating. Government Spokeswoman Fatemeh Mohajerani warned that prices of basic goods in Iran are expected to rise by another 20% to 30% in the coming weeks, with even sharper increases projected for chicken, eggs, and cooking oil. She claimed the hike stemmed from the government’s decision to halt dollar subsidies for essential imports in an effort “to stabilize the foreign exchange market and curb corruption – a step that raised the cost of importing goods and raw materials in local currency.”

The regime blames external actors and foreign exchange traders for the economic crisis and the currency collapse, but its central problem remains the plummeting oil exports caused by sanctions enforcement. The administration, according to diplomatic sources, intends to expand these sanctions and, crucially, to enforce the ban on oil exports to the maximum extent. The parliament in Tehran has approved a state budget that includes wage increases to compensate for the currency’s fall, but economists assess that in the current situation, Iran’s economy will be unable to meet these budgetary promises.

Assessments suggest that protests in the Iranian streets will intensify as prices rise, expanding to new sectors. This unrest fuses the economic crisis with other deep-seated grievances: the dictatorial and Islamist nature of the regime, the investment in terror and military projects rather than infrastructure, and the sectarian conflicts simmering within Iran.


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