Trump denies $300 billion Iran payment reports, repeats nuclear weapon claim

US President Donald Trump on Wednesday reiterated his earlier claim that Iran has agreed to never acquire a nuclear weapon, categorically denying that America will pay Iran $300 billion in a peace deal clinched this week. Trump described reports about the $300 billion reconstruction package as "fake news", according to foreign media.

Earlier, US Vice President JD Vance had said that a potential $300 billion reconstruction fund for Iran could be made available if Tehran fulfils its obligations under a future agreement.

While the US and Iran confirmed that they had reached a peace agreement this week, both sides are yet to sign a formal deal on June 19. The breakthrough came after nearly four straight months of escalations that followed joint American-Israeli strikes on February 28 that killed Iran's Supreme Leader.

Most experts expect normalcy in energy supplies -- impacted due to disruptions in the Strait of Hormuz -- to return over the next few weeks.

The news about the peace deal has sent crude oil tumbling to three-month lows.

The strait -- central to the West Asia conflict -- links the Persian Gulf with the Gulf of Oman and the Arabian Sea, and normally enables the passage of about one-fifth of the world's oil and gas supplies.

The American president has repeatedly justified military action against Iran by arguing that the country was close to developing a nuclear weapon. On the other hand, Iran has consistently denied seeking nuclear weapons and maintains its nuclear programme is for peaceful purposes.

The POTUS has previously faced criticism from some allies after suggesting last month that an agreement with Iran was close to completion despite unresolved issues.

All Eyes on G7 Summit: Why India is closely tracking West Asia developments

Trump is scheduled to meet Prime Minister Narendra Modi at around 6:15 pm India time on Wednesday. The meeting is set to take place on the sidelines of the 2026 edition of the G7 Summit in France, which ends later in the day.

The developments are also being closely tracked at the ongoing G7 Summit, where global leaders have discussed a range of issues, including economic growth, energy security and geopolitics.

News agency ANI reported, citing sources, that the situation in West Asia, the Strait of Hormuz, energy imports from the US and the proposed bilateral trade agreement are expected to figure in the scheduled talks between PM Modi and President Trump.

Both countries remain keen on building a long-term energy partnership, while work on the trade deal could conclude in the coming weeks, according to the report.

What is G7 and why does it matter?

G7 -- or the Group of Seven -- is an informal grouping of the US, the UK, Canada, France, Germany, Italy and Japan, along with the European Union.

The grouping traces its origins to the 1973 oil crisis.

Its first summit, then known as the G6, was held in France in 1975. Canada joined the bloc a year later.

The forum functions through annual summits hosted on a rotating basis by member countries and has no permanent secretariat.