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From the guardian and Jana Shqeir

May 27 (Reuters) - U.S. President Donald Trump said on Wednesday that the United States and Iran still have issues to resolve in peace talks, after Washington denied a report by Iranian state television that a framework agreement had been reached to resume shipping through the Strait of Hormuz within a month and lift the U.S. naval blockade on Iranian vessels.

Trump stated at a cabinet meeting that Iran remains eager to end the war that halted the passage of global energy supplies through the Strait of Hormuz, but the terms are unsatisfactory to Washington.

He added, "Iran is very determined; it desperately wants to reach an agreement. So far, it hasn't reached that... We are not satisfied with that, but we will be satisfied. Either that, or we will have to finish the job," without providing further details.

He later added, "The agreement must be perfect," and that the Strait of Hormuz would be opened as soon as an agreement was reached and that no single country would have control over the sea passage.

Iranian state television reported on Wednesday that it had obtained an unofficial draft of the memorandum of understanding under which the United States would lift its embargo and withdraw its forces from the vicinity of Iran.

The Iranian television report indicated that the issue of the presence of US forces in the region still needs further discussion, without providing additional or specific details.

The report did not address the Iranian nuclear program, which the United States is seeking to dismantle.

The United States denied the report, describing it in a statement posted by the White House on social media as "completely fabricated ".

"I think there is some progress being made and some willingness to act, and we will see in the next few hours and days whether it is possible to make more progress," said U.S. Secretary of State Marco Rubio during a cabinet meeting.

He added, "The bottom line is that Iran will never possess a nuclear weapon."

Control of Hormuz

Key points of contention include the reopening and management of the Strait of Hormuz, through which 20 percent of the world's oil and liquefied natural gas passed before the crisis, and the dismantling of Tehran's nuclear capabilities.

Trump said that once an agreement is reached, the United States will monitor shipping traffic there. He added that Oman will also have to play its part in this process. The strait is governed by international law, which guarantees foreign vessels the right of passage through it.

He said: "We will monitor the corridor, but no one will control it, and this is part of the negotiations we are conducting."

Oil prices fell by more than five percent on Wednesday following the Iranian television report, but recovered one-fifth of that decline.

The US military has about 15,000 troops currently enforcing a blockade on Iran, and thousands more troops at military bases throughout the region, including in Gulf states such as Qatar, the UAE and Bahrain.

U.S. Navy ships, some carrying thousands of sailors and marines, frequently transit the region, making port calls, some in Oman. The Pentagon has not yet responded to a Reuters request for comment.

* The nuclear issue enters its second round

Iranian sources have previously stated that talks on the nuclear issue would take place in a second round of negotiations, a prospect that may not be acceptable to some of Trump's staunchest supporters. Iran maintains that its nuclear program is solely for peaceful purposes.

Earlier on Wednesday, a senior Iranian official told reporters on the sidelines of the first Moscow International Security Forum that reopening the Strait of Hormuz remained a point of contention.

Ali Bagheri Kani, deputy secretary of Iran’s Supreme National Security Council, told reporters when asked about an agreement to reopen the Strait of Hormuz, “As long as we have not agreed on all issues, we consider that nothing has been agreed upon.”

The Iranian Revolutionary Guard Navy said today that 23 ships, including oil tankers, container ships and other commercial vessels, had crossed the Strait of Hormuz with its permission in the past 24 hours, a fraction of the daily number that ranged between 125 and 140 ships before the conflict.

The war, which broke out on February 28, has killed thousands and caused an unprecedented oil supply crisis, leading to soaring costs for fuel, fertilizers and food.

It has also caused political problems for Trump at home, with polls showing the war is very unpopular with Americans just six months before the midterm elections.