Trump claims Iran talks have begun, calls it 'last chance'; Tehran denies direct contact and oil prices tumble

Trump's reversal

President Donald Trump told reporters on Sunday that he had called off a planned massive military strike on Iran and that negotiations would resume Monday afternoon. Speaking aboard Air Force One, he said the attack would have been "the largest military attack since World War II" but that allies including Saudi Arabia, the UAE, and Qatar had urged him to postpone because a deal was within reach. Trump insisted the talks were happening "at the request of Tehran" and focused on reopening the Strait of Hormuz, possibly "even tomorrow." He warned, however, that he would not allow Iran to charge fees on ships transiting the strait.

I want to give Iran every last chance before the beheading. Let's hope it comes to its senses.

Trump added that a framework agreement on the strait was already in place and that a nuclear deal would follow. He did not specify where the talks would occur, how long they would last, or who would participate.

Iran's denial and the Oman channel

Iran's foreign ministry spokesman Esmaeil Baghaei flatly rejected the claim of direct US-Iran negotiations during a press briefing on Monday. He said Iran is not in talks with Washington but is discussing a temporarily safe shipping route through the Strait of Hormuz with Oman. Baghaei stressed that even an agreement with Muscat would not be enough to reopen the waterway as long as US and Israeli military operations continue.

The Strait of Hormuz is not closed because of disagreements between Iran and Oman. The Strait of Hormuz is in crisis because of the military aggression of the United States and the Zionist regime.

He described the five-month war as a conflict against the entire region, not just Iran, and said the US military presence in Gulf states had worsened insecurity for all. Iranian MP Hassan Ghashghavi separately told state television that mediators were working to revive the 14-point Islamabad agreement.

Oil markets react

Crude prices fell sharply in Asian trading on Monday as investors priced out the geopolitical risk premium that had built up over weeks of escalating threats. Brent crude for October delivery dropped 5.16% to $83.39 a barrel, while West Texas Intermediate for September lost nearly 6% to $79.66. The decline reversed a rally that had pushed prices above $90 on fears of a new US-led strike. Markets focused on the diplomatic opening despite Tehran's cautious response, with the Fars news agency, close to the Revolutionary Guards, dismissing Trump's proposal as a "wish list."

Regional mediation and internal divisions

Behind the scenes, Pakistan, Qatar, Saudi Arabia, Turkey, and the UAE have been shuttling messages between Washington and Tehran. Pakistani officials told the Anadolu news agency that the immediate goal is a two-week period of calm in the Persian Gulf, after which indirect contacts could resume. Saudi Crown Prince Mohammed bin Salman spoke with Trump on Saturday to express concern about the planned raid, according to Axios.

The US administration itself is split. Defense Secretary Pete Hegseth has been pressing for a major military operation, echoing Israeli Prime Minister Benjamin Netanyahu's calls, while Vice President J.D. Vance and Chief of Staff General Dan Caine have urged restraint. A Gallup poll showed only 37% of Americans support the war. Vali Nasr of Johns Hopkins University said Trump is trying to find a diplomatic off-ramp but has no clear path to declare victory. The pattern of alternating threats and talks has now repeated, by CNN's count, 38 times since the conflict began.