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Steve Witkoff says the president is puzzled why Iran has not yet compromised in the face of a major US military build-up nearby.
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Steve Witkoff told Fox News on Saturday that Trump was "curious" about Iran's position after he had warned of a limited military strike if a deal could not be reached on Tehran's nuclear programme.
The US and its European allies suspect Iran of moving towards making a nuclear weapon, which it denies.
Within Iran, anti-government protests were staged at several universities over the weekend - the first rallies on such a scale since January's deadly crackdown by the authorities, which saw thousands killed.
In his Fox interview, Witkoff said: "I don't want to use the word 'frustrated'... because he [Trump] understands he's got plenty of alternatives, but he's curious as to why they haven't... I don't want to use the word 'capitulated', but why they haven't capitulated.
"Why, under this sort of pressure, with the amount of sea power and naval power that we have over there, why haven't they come to us and said, 'We profess that we don't want a weapon, so here's what we're prepared to do?'"
The envoy added: "And yet it's hard to sort of get them to that place."
Iran's Foreign Minister Abbas Araghchi said on Sunday that he believed there was still a chance the dispute could be solved diplomatically "based on a win-win game". He told CBS News negotiators were working on the elements of a deal.
In separate comments two days ago, Araghchi said Tehran was preparing "a draft of a possible agreement" and would hand it over to Witkoff in the next few days.
US and Iranian officials discussed Iran's nuclear programme at indirect talks in Geneva in Switzerland on 17 February. They said afterwards that progress had been made.
Oman - which mediated the talks - announced on Sunday that the next rou
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