Gen. Keane: US 'holding all the cards,' Iran 'back on their heels' like they've never been before

The Trump administration should not offer Iran any opportunities to negotiate after this weekend's assault on Saudi Arabia's oil installations, which was launched from Iranian soil, Fox News senior strategic analyst Gen. Jack Keane argued on Monday.

The retired four-star Army general said on "America's Newsroom" that Iran is lashing out in an attempt to force the U.S. to reduce crippling economic sanctions.

"I don't believe the Iranians are in any position to talk right now," said Keane, scoffing at the idea that U.S. and Iranian negotiators would meet at the upcoming U.N. General Assembly.

The early morning strikes Saturday that hit Aramco's main crude processing facility knocked out 5.7 million barrels of daily oil production for Saudi Arabia — or more than 5 percent of the world's daily crude production.

IRAN DETAINS UNITED ARAB EMIRATES-BOUND SHIP, CREW FOR ALLEGED DIESEL SMUGGLING AMID REGIONAL TENSIONS: REPORT

DAMAGE FROM IRAN-LINKED DRONE ATTACK ON SAUDI OIL FACILITY CAPTURED IN SATELLITE IMAGES

On Sunday, Secretary of Defense Mark Esper attended an emergency National Security Council meeting at the White House along with Vice President Pence, where military options were discussed, officials told Fox News. The officials said cruise missiles and drones used in the attack were launched from Iran.

Satellite photos released by the Trump administration show at least 17 impacts at two major Saudi oil installations – with what officials say was pinpoint accuracy – slashing Saudi Arabia's oil output by half.

Keane said the Trump administration has no reason to sit down with the Iranians given the current situation.

"The Iranians are gonna exhaust their playbook, I believe, before they come to the negotiating table. I don't believe we should continue to reach out to them in terms of offering them opportunities to talk," said Keane.

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"Listen, we're holding all the cards here. The Iranians are back on their heels in a way they've never been before. Based on their actions, we can isolate them politically and economically and squeeze them even further. Obviously, our military option will be on the table," he added.

Fox News reported exclusively last week that tough sanctions imposed by the United States on Iran since President Trump’s withdrawal from the nuclear deal last year have left pension funds throughout the country on the brink of collapse.

Fox News' Lucas Tomlinson contributed to this report.