Conflicting narratives have emerged between the United States and Iran after President Donald Trump claimed “very good” and “productive” talks with Tehran after announcing a temporary pause in planned strikes on the region’s energy infrastructure. However, Iranian authorities denied any direct negotiations, accusing Washington of using diplomacy as a cover to “buy time” for military action.Speaking to reporters before boarding Air Force One, Trump reiterated that the United States and Iran were making significant progress toward a deal. “We have major point of agreement; I would say almost all points of agreement,” he said, adding, “they want very much to make a deal; we’d like to make a deal too.”
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He also revealed that US officials were in contact with “a top person” in Iran, though not the supreme leader, saying, “I can’t name the person… because I don’t want him to be killed.” Trump suggested a potential breakthrough could involve Iran abandoning its nuclear weapons ambitions in exchange for peace, and indicated further talks were expected soon. “We’re going to get together today, by probably phone,” he added.
Strike threat paused for five days
Trump’s remarks came after in the day, he announced a temporary halt to planned US strikes on Iran’s energy infrastructure, including power plants, for a five-day window.Sharing a post on Truth Social, Trump said Washington and Tehran had held “productive conversations” over the past two days aimed at “a complete and total resolution” of hostilities in the Middle East.
Citing the talks, Trump said he had directed the Pentagon to “postpone any and all military strikes against Iranian power plants and energy infrastructure for a five day period, subject to the success of the ongoing meetings.”He added that the previously undisclosed US-Iran discussions would “continue throughout the week.” The announcement came just ahead of a Monday night ultimatum for Iran to reopen the Strait of Hormuz shipping route or face threats.Earlier on Saturday, Trump had threatened to “obliterate” Iran’s power infrastructure if Tehran failed to reopen the strategically vital Strait of Hormuz, through which nearly a fifth of global oil supply passes.
Iran denies talks, calls it “psychological warfare”
Iran, however, rejected Trump’s claims outright.According to Iranian state media citing the foreign ministry, the US move to delay strikes was “part of efforts to lower energy prices and buy time for the implementation of his military plans.” Dismissing the idea of negotiations, the ministry said, “No negotiations have taken place and none are underway.” It added that while “initiatives from regional countries to reduce tensions” had been proposed, Tehran’s response remained consistent: “we are not the party that started this war, and all such requests must be referred to Washington.” Iranian outlets portrayed the US position as a retreat under pressure. Tasnim news agency reported, “Since the start of the war, messages have been sent to Tehran by some mediators, but Iran’s clear response has been that it will continue its defense until the required level of deterrence is achieved.” “With this kind of psychological warfare, neither the Strait of Hormuz will return to prewar conditions nor will calm return to energy markets,” it added.
Strikes continue despite diplomatic signals
Even as diplomatic signals emerged, military action continued on the ground.Shortly after Trump announced a pause on strikes, the Israeli military said it was carrying out another wave of attacks on targets in Tehran.Associated Press journalists reported hearing explosions at multiple locations across the Iranian capital on Monday afternoon, though it was not immediately clear what had been hit. Later in the day, more blasts were reported in the city, with no confirmed details on the targets.Meanwhile, Iran launched two missiles and 36 drones towards Bahrain over the past 24 hours, according to the country’s Defence Ministry.Tehran has stepped up its retaliation to US-Israeli strikes by disrupting traffic through the Strait of Hormuz, a route that carries about a fifth of global crude, while also targeting energy facilities, US embassies across the Gulf, and sites in Israel.
Oil markets swing sharply
The uncertainty triggered sharp movements in global oil markets. Prices, which had surged above $100 per barrel amid fears of supply disruption through the Strait of Hormuz, fell steeply after Trump’s announcement.Brent crude dropped more than 15%, briefly slipping below $100 before stabilising later. The volatility reflects the centrality of the Strait to global energy flows, with disruptions already raising fears of a prolonged supply shock.
‘No country will be immune to the effects’
Energy experts have cautioned that a prolonged disruption could trigger a crisis worse than past oil shocks, given the scale of supply at risk.The International Energy Agency (IEA) had earlier warned that the ongoing conflict has triggered a global energy crisis.Speaking at the National Press Club in Australia, IEA chief Fatih Birol said, “This crisis as things stand is now two oil crises and one gas crash put all together.”He cautioned that the global economy faces serious risks, adding, “The global economy is facing a major, major threat today, and I very much hope that this issue will be resolved as soon as possible.”Birol further warned that “no country will be immune to the effects of this crisis if it continues to go in this direction,” stressing the need for coordinated global action.The standoff has placed the Strait of Hormuz at the heart of the conflict, with both military escalation and diplomatic manoeuvring centred around the critical waterway.According to Reuters, the conflict, which began on February 28 with US-Israeli strikes on Iran, has killed more than 2,000 people and roiled global markets, pushing up fuel prices and fuelling inflation concerns while straining Western alliances.Concerns had also mounted over potential strikes on Gulf electricity grids, which could disrupt desalination systems critical for drinking water supply, further unsettling energy markets.
