U.S. President Donald Trump signaled Sunday he is prepared to let economic pressure mount against Iran, apparently backing away from ordering more military strikes even as Tehran issues tough demands.

"We are low-keying it," Trump said, according to the news outlet Axios, which said it spoke to him in a brief phone call.

Only a week ago Trump made the latest of his series of threats to hit Iran hard, only to back off, as he presses for a deal to end the war he started along with Israel on February 28.

Axios said Trump did not express any frustration Sunday with Iran's delaying an agreement to open up the Strait of Hormuz.

Iran has demanded that the US first end its blockade of Iranian ports and lift oil sanctions, as per the memorandum of understanding the two countries signed in June.

The strait's blockage by Iran since the war started has sent fuel prices soaring and rattled the world economy, putting pressure on the Trump administration as midterm elections in November grow nearer.

"We are only semi-negotiating with them. We are just watching Iran with its huge inflation and the fact they have no money," Trump was quoted as saying.

Trump also said oil prices are falling so American consumers are feeling less pain from the war.

"It will work out. It always works out. It's like a chess game," Trump said of US dealings with Iran.