President Donald Trump said the United States has begun direct high-level talks with Iran over its nuclear program, during a meeting with Israeli Prime Minister Benjamin Netanyahu.

"We're going to have direct talks with Iran, and they have begun," Trump said in the Oval Office after the meeting, which focused on Israel's quest to avoid U.S. tariffs.

"Maybe a deal will be struck, that would be great. We have a very important meeting coming up on Saturday, almost at the highest level," he said.

Trump's stunning statement came a day after Iran rejected direct talks on a new agreement to curb its nuclear program, calling the idea "meaningless."

The US president withdrew his country from the last deal in 2018 during his first term. Recently, speculation has been rife that Israel, possibly with U.S. help, will attack Iranian facilities if a new agreement is not reached.

Trump has said "everybody agrees that a deal would be preferable to the obvious - and the obvious is not something I want to deal with, or frankly that Israel wants to deal with if it can avoid it."

The surprising statement came at a time when Netanyahu became the first foreign leader to personally ask for a reprieve from the tough US tariffs that have rocked the world.

The Israeli prime minister vowed to "eliminate" the trade deficit between the two countries and also bring down trade "barriers." Before the meeting, his country lifted the last remaining tariffs on US imports.

Netanyahu believes that Israel can serve "as a model for many countries" when it comes to negotiations on tariffs.

Negotiations on Gaza

Netanyahu and Trump also discussed Gaza, where a short-lived truce between Israel and Hamas brokered by the United States failed.

Netanyahu indicated that new negotiations were underway aimed at freeing more hostages from war-torn Gaza.

"We are currently working on another deal that we hope will succeed, and we are determined to get all the hostages out," he told the Oval Office.

Trump reiterated his plan for the US to "control" the Gaza Strip, which he described as "a big piece of real estate".

Earlier, Trump greeted Netanyahu and waved his fist before the two leaders - both dressed in dark suits, red ties and white shirts - went inside for a meeting in the Oval Office.

The Israeli prime minister's visit is his second to Trump since the US president returned to power, and it comes on short notice - just days after Trump imposed a 17 percent duty on Israel on "Liberation Day" last week.

Trump refused to exempt the largest recipient of US military aid from his global salvo of tariffs because he said Washington has a significant trade deficit with Israel.

Netanyahu met with U.S. Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamison Greer shortly after his arrival.

The Israeli prime minister also spoke with Trump's special envoy for the Middle East, Steve Whitkoff. | BGNES, AFP