Fresh diplomatic efforts ease immediate fears of further conflict, sending oil prices lower as investors wait for the next move.
U.S. President Donald Trump said negotiations with Iran will begin on Monday, raising hopes that diplomacy could help ease tensions in the Middle East. While confirming the talks, Trump declined to set any deadline for reaching an agreement or reveal where the meeting would take place.
KEY DETAILS
Speaking to reporters aboard Air Force One on Sunday, Trump said negotiations would begin on Monday afternoon but did not identify the participants or location.
His comments followed a Truth Social post on Saturday, where he said Iran and other Middle Eastern countries had requested more time to complete a deal that would lead to the immediate reopening of the Strait of Hormuz and address concerns over Iran's nuclear program. Trump also urged Tehran to "rapidly make a DEAL."
When asked whether Iran faced a deadline to reach an agreement, Trump avoided giving one.
"I would rather make a deal," Trump said, adding that he did not want more people to die as the conflict continued.
The latest diplomatic push comes after months of escalating tensions. Trump has repeatedly warned of further military action while also extending opportunities for negotiations, though previous rounds have failed to produce a comprehensive agreement.
Meanwhile, Iran's Foreign Minister Abbas Araqchi held separate phone calls with Saudi Foreign Minister Prince Faisal bin Farhan and Pakistan's Army Chief Asim Munir, according to Iranian state media, as regional diplomatic efforts continued.
Iran's official IRNA news agency also reported that negotiations with Oman over the Strait of Hormuz were nearing completion. However, Iranian Foreign Ministry spokesperson Esmaeil Baghaei said those discussions relate to a proposed shipping route and are separate from any decision on reopening the strait.
Israel also signaled it would maintain pressure on Tehran. Energy Minister Eli Cohen said Israel would continue coordinating closely with the United States and warned that military action would remain an option if Iran resumes its nuclear or ballistic missile programs.
Tehran continues to deny it is pursuing nuclear weapons.
MARKET REACTION
Oil prices fell more than 4% in early Monday trading as investors welcomed signs that diplomacy could reduce the risk of further disruptions. The Strait of Hormuz, which normally handles around 20% of global oil and liquefied natural gas shipments, has remained a major concern for energy markets since the conflict intensified.
WHY IT MATTERS
Any progress in the talks could ease pressure on global energy supplies and inflation. For traders, developments surrounding the Strait of Hormuz remain one of the biggest drivers of oil prices and broader market sentiment.
Markets will closely monitor Monday's negotiations for any signs of progress, as well as further comments from Washington, Tehran, and regional allies. The outcome could shape energy markets and geopolitical risk in the days ahead.
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Source: Reuters
Time: 11:10 AM EEST
