US President Donald Trump has said that Washington is in talks with what he described as a “new, and more reasonable” leadership in Iran, even as he warned of severe consequences if a deal is not reached soon.

In a post on Truth Social, Trump said, “The United States of America is in serious discussions with A NEW, AND MORE REASONABLE, REGIME to end our Military Operations in Iran.” He added that “great progress has been made” in the talks and expressed confidence that an agreement would likely be reached.

However, the US President issued a strong warning tied to the Strait of Hormuz, stating that if the waterway is not “immediately ‘Open for Business,’” the United States would escalate its military response.

Trump said Washington would “blow up and completely obliterate all of their Electric Generating Plants, Oil Wells and Kharg Island (and possibly all desalinization plants!)” if conditions are not met.

He described the potential action as retaliation for American losses, referring to what he called Iran’s “47 year ‘Reign of Terror.’”

The remarks came after Iran rejected the US proposals conveyed through intermediaries amid the ongoing war, calling them unrealistic and one-sided.

Foreign ministry spokesperson Esmaeil Baghaei said the offers presented to Tehran were largely unacceptable. “Proposals conveyed to Iran have mostly been ‘unrealistic, unreasonable and excessive,’” he said, as quoted by Al Arabiya News.

Trump had earlier claimerd that the US-Israel war had achieved regime change in Iran, even as he assured that he would "make a deal" with the Iranians.

"I think we'll make a deal with them, pretty sure... but we've had regime change," Trump told reporters aboard Air Force One, citing the number of Iranian leaders killed in the month-long war.

"We're dealing with different people than anybody's dealt with before. It's a whole different group of people. So I would consider that regime change," Trump said.

Mojtaba Khamenei, the son of former supreme leader Ali Khamenei who was killed in an airstrike at the start of the war on February 28, was tapped to be the country's third supreme leader since the 1979 Islamic revolution.

Ever since the conflict kicked off with US-Israeli strikes on Iran, Tehran has effectively shut down the Strait of Hormuz, through which about 20 percent of the world's oil and gas transits.

The closure has sent global oil prices soaring, but Trump said that relief was on the way in the form of concessions from Iran, starting with the imminent passage of several tankers through the key waterway.