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The US is surging forces to the Middle East amid negotiations with the Islamic Republic over its nuclear programme.
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At the inaugural meeting of his Board of Peace in Washington DC, Trump said "we have some work to do" in coming to an agreement with the Islamic Republic about its nuclear programme, and that "we may have to take it a step further".
In recent days, the US has surged military forces to the Middle East, while progress was also reported at talks between American and Iranian negotiators in Switzerland.
Democratic lawmakers, and some Republicans, have voiced opposition to any potential military action in Iran without congressional approval.
In his remarks, Trump noted that Special Envoys Steve Witkoff and Jared Kushner, who is also Trump's son-in-law, had "some very good meetings" with Iran.
"It's proven to be, over the years, not easy to make a meaningful deal with Iran," he said. "Otherwise bad things happen."
One day earlier, White House Press Secretary Karoline Leavitt warned that Iran would be "very wise" to make a deal with the US, adding that Trump was still hoping for a diplomatic solution over Tehran's nuclear programme.
When Trump first announced the Board of Peace, it was thought to be aimed at helping end the two-year war between Israel and Hamas in Gaza and oversee reconstruction. But in the last month, its mission has appeared to go beyond one conflict, with many wondering if the Trump-chaired board, made up of about two dozen countries, is meant to sideline the United Nations.
US missile and aircraft struck three Iranian nuclear facilities in July last year, and the White House was reportedly discussing new attack options this week.
American forces have been ramping up their presence in the region in recent weeks, including the deployment of the USS Abraham Lincoln aircraft carrier.
Satellite images have also shown that Iran has reinforced military facilities, and the countr
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