US President Donald Trump said Sunday that he anticipates renewed negotiations with Iran in the coming week, even after turning down a ceasefire proposal presented by Tehran.

Iranian officials arrived at the United Nations General Assembly in New York carrying a proposal that called for a seven-day truce, followed by the reopening of the Strait of Hormuz to shipping.

Trump rejected the proposal and has indicated that he is considering a return to extensive US airstrikes against Iranian targets. However, in an interview with Axios, he said he still expects discussions with Tehran to restart.

“They want to make a deal, but it is not the deal that I want to make,” Trump told Axios. “It is what we would have maybe agreed to a year ago.”

“They overplayed their hand,” Trump said, in the interview published Sunday.

Axios, citing people familiar with the situation, reported that indirect discussions between the United States and Iran could begin as soon as Monday.

US Ambassador to the United Nations Mike Waltz said Tehran was seeking excessive concessions in exchange for returning to negotiations.

“This was, I think, a pretty cynical attempt to put something on the table that they knew was unacceptable. To ask for the release of the blockade, the sanctions, international sanctions and access to billions in assets, just to talk,” he told NBC News in an interview broadcast Sunday.

“I think it’s kind of common sense that the president doesn’t have a lot of confidence this time after we just tried a few months ago,” Waltz said.

Waltz said Iran “can come to the table and in accordance with international law, in accordance with their obligations in the non-proliferation treaty and… Heck, our negotiators even offered to sell them uranium.”

Tehran: ‘We will not back down’

Iran continued Sunday to insist that its conditions must be met before the Strait of Hormuz can reopen, leaving the Gulf portion of the conflict at an impasse as fighting continues in Yemen.

The Strait of Hormuz is a crucial passage for global energy shipments and has become a major focus of the confrontation between Washington and Tehran, which began nearly seven months ago after the United States and Israel launched a series of attacks against Iran.

According to Iranian Foreign Minister Abbas Araghchi, Tehran’s proposal called for an end to hostilities throughout the Middle East, including Lebanon, and a return to terms contained in an earlier ceasefire agreement that subsequently collapsed. In Lebanon, Hezbollah, the Iran-backed terror group, has continued fighting with Israel.

That previous agreement fell apart during the confrontation over Hormuz. It included provisions for releasing frozen Iranian funds, removing sanctions on Iranian oil and ending the US naval blockade.

“Our conditions are clear, and any move toward reopening the Strait of Hormuz is contingent upon these conditions being fulfilled. We will not back down from them,” Araghchi said on Sunday, state broadcaster IRIB reported.

“We have never closed the door to diplomacy or negotiations, but at the same time, we have never backed down from our rights,” he said.

Meanwhile, Iran’s Revolutionary Guards said Sunday that they had captured an American submersible drone in the Strait of Hormuz.

The Revolutionary Guards said the underwater device was being used “for espionage purposes,” and that it was “now in the hands of the force’s specialists for data recovery.”

The United States and Iran signed a memorandum of understanding in June intended to bring the conflict to an end, reopen the Strait of Hormuz and begin negotiations concerning Iran’s nuclear program.

That arrangement unraveled soon afterward after Iran opened fire on commercial vessels in Hormuz, accusing them of departing from their authorized routes through the waterway.

Iran says vessels must receive permission before entering the strait, citing concerns involving security and national sovereignty.

Vessels that decline to follow those requirements are frequently attacked, while the United States has periodically carried out strikes against Iranian coastal positions in response.

Speaking at the United Nations, Araghchi said Iran had delivered a specific seven-day proposal to Washington through Qatar, adding: “The choice now rests with the United States.”

Hossein Mohebi, a spokesman for Iran’s Revolutionary Guards, was quoted by the Tasnim news agency as saying: “We will not cease punishing the US until Iran’s seven conditions are met.”

Mohebi told AFP in an exclusive interview Tuesday that an end to hostilities in Yemen was also included among Tehran’s demands.