Washington, Aug. 4 -- President Donald Trump said Iran had one "last chance" to accept a US nuclear deal before facing "decapitation," claiming he had called off what would have been "the biggest attack since World War II" to allow diplomacy one final opportunity.

Speaking at the White House, Trump said negotiations with Tehran were underway at the request of regional powers, even as Iran flatly denied holding any talks with Washington, exposing deep uncertainty over the state of US-Iran diplomacy and raising fresh questions over whether a breakthrough or a military confrontation is closer.

Trump said he had paused what he described as a massive U.S. military operation against Iran after signs of diplomatic progress and appeals from regio...