US President Donald Trump on Tuesday (US local time) directed his top envoys to suspend negotiations with Iran, according to a CNN report citing senior US officials. The decision marks a sharp pivot in Washington's approach to the ongoing standoff with Tehran, coming just as a 60-day negotiating window set under a memorandum of understanding expired on Monday.

Who Was Told to Stand Down

Trump reportedly instructed his core negotiating team — including Vice President JD Vance, special envoy Steve Witkoff, and senior adviser Jared Kushner — not to engage further with Iranian counterparts. This came despite what officials described as some 'positive discussions' having taken place in recent weeks, according to the CNN report.

The Strategic Shift: 'Strangle' Over Strikes

Rather than pursuing military escalation, the White House is reportedly recalibrating toward a sustained economic pressure campaign — a strategy described by a source familiar with the matter as an effort to 'strangle' Iran over time. Trump, according to the report, remains unsatisfied with Tehran's refusal to meet his terms and is waiting for Iranian leadership to signal fresh willingness to negotiate before any re-engagement.

Notably, Trump posted on social media on Tuesday that there were 'no talks or conversations going on, or scheduled' with Iran — contradicting earlier assertions from within his own administration that discussions were progressing well.

Treasury Tightens the Financial Vise

US Treasury Secretary Scott Bessent said on Thursday that Washington would impose measures on Iran 'that have never been seen.' He stated that the Treasury Department has already targeted Iranian 'bank accounts, crypto wallets, assets around the world, cutting off payments into both the leadership in the regime and the government itself.'

The escalating financial campaign signals that the US intends to intensify economic isolation even as direct diplomatic channels go quiet.

Hormuz Dispute and Contradictory Claims

Trump also asserted in his social media post that the Naval Blockade 'remains in full force and effect,' and claimed the Strait of Hormuz 'is open and operating' with 'all water mines removed or detonated.' These claims, however, contradict reports that traffic through the critical global energy waterway remains sharply reduced.

The United States and Iran remain at odds over the Strait of Hormuz and the broader terms for ending the conflict, with the path forward now deeply uncertain.

What Comes Next

With the 60-day MOU window closed and direct talks suspended, the trajectory of the US-Iran standoff hinges on whether Tehran signals any fresh flexibility. Analysts warn that a prolonged 'strangle' strategy — if combined with continued Hormuz disruption — could have significant spillover effects on global energy markets and regional stability.