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Update: Market Chatter: Trump Maintains Iran Blockade, Rejects Proposal; US Prepares Potential Strike Plan

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-- (Updated with US Central Command's response in the 16th paragraph.)

US President Donald Trump said he will maintain a US naval blockade on Iran, rejecting Tehran's proposal while pushing for a stricter nuclear agreement, Axios reported Wednesday.

Trump dismissed Iran's request to reopen the Strait of Hormuz before nuclear talks, choosing instead to sustain pressure until Tehran agrees to US demands.

US Central Command has drafted plans for a short but intense strike campaign targeting Iranian infrastructure to break the current negotiating impasse, three sources familiar with the matter told Axios.

Officials expect any military action to hit key infrastructure, after which Washington would push Iran back into negotiations with greater concessions, the sources said.

Trump said he prefers the blockade over immediate military action, calling it more effective leverage, and he has not authorized strikes as of Tuesday night, according to the sources.

The US President views the blockade as his primary tool but remains open to military action if Iran refuses to compromise on nuclear demands, the report added, citing sources.

"The blockade is somewhat more effective than the bombing," Trump told Axios.

He added that Iran wanted to settle, "They don't want me to keep the blockade. I don't want to [lift the blockade], because I don't want them to have a nuclear weapon."

The president said Iran faces severe economic strain under the blockade and suggested Tehran seeks a deal to ease restrictions and resume exports, according to the report.

He added that Iran's oil storage and pipeline systems are approaching critical limits and are "getting close to exploding" as exports stall. However, some analysts question the immediacy of that risk, the report said.

An Iranian security official warned that the blockade will trigger an unprecedented response if it continues, signaling rising tensions, according to state-affiliated Press TV, cited by the report.

The source said Iranian forces have shown restraint to allow diplomacy but stressed patience will not last if pressure tactics persist, the report added.

Iran's military leadership believes a strong retaliatory move may become necessary if negotiations fail and the blockade remains in place, according to the report.

On Wednesday, Trump posted on Truth Social, "Iran can't get their act together. They don't know how to sign a nonnuclear deal. They better get smart soon!"

The White House did not immediately respond to' request for comment.

The US Central Command said it had no comment in response to' query.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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