Trump says US-Iran negotiations to resume Monday, suspends planned military action

U.S. President Donald Trump said negotiations between the United States and Iran will resume on Monday after he decided not to proceed with planned military strikes against Tehran, signalling a renewed push for diplomacy following weeks of heightened tensions that disrupted global energy markets.

Speaking to reporters aboard Air Force One on Sunday, Trump said talks would begin on Monday afternoon but did not reveal where they would take place or who would participate.

“Now what we’re doing is we’re talking to them in the form of a negotiation. It begins tomorrow afternoon,” Trump told reporters Sunday aboard Air Force One, without disclosing the venue or participants.

Trump said he shelved the planned strikes after appeals from Saudi Arabia, the United Arab Emirates, Qatar and Iran. He also expressed confidence that an agreement covering Iran’s nuclear programme and the Strait of Hormuz could be reached soon.

The U.S. president had said on Saturday that the cancelled military operation would have been the largest since World War II, while maintaining that Washington remained prepared to strike Iran if necessary.

The Strait of Hormuz, a key route for roughly one-fifth of the world’s oil supply before the conflict intensified, has experienced a sharp decline in shipping activity, although vessel movements have occasionally increased following encouraging diplomatic developments.

Oil prices fell after Trump’s comments raised expectations of a possible diplomatic breakthrough. West Texas Intermediate crude for September delivery dropped almost six percent to $79.66 a barrel, while Brent crude for October delivery declined 5.16 percent to $83.39 per barrel.

BMI, a research arm of Fitch Solutions, said on Monday that a broader agreement to reopen the Strait of Hormuz remains possible within the current quarter. However, it also increased the likelihood of a renewed escalation in the crisis to 35 percent from 25 percent, citing growing military, diplomatic and economic tensions between Washington and Tehran.

“Diplomatic progress is likely to be punctuated by periodic military flare-ups, while miscalculation by either side could trigger a renewed escalation,” BMI analysts wrote in a note.The analysts said attention remains focused on future governance of the Strait of Hormuz, noting that ongoing discussions involving Iran and Oman, with possible backing from Gulf states, China and the United States, suggest efforts to establish a new post-conflict shipping framework.

Despite diplomatic momentum, security concerns remain. The United Kingdom Maritime Trade Operations (UKMTO) reported an incident involving a tanker near the entrance to the Strait of Hormuz off the coast of Oman. According to UKMTO, the vessel’s captain reported an explosion nearby, although the ship and crew were unharmed. Authorities are investigating the incident and ships have been advised to remain cautious.

According to the Associated Press, citing a regional official involved in mediation efforts, the latest U.S. proposal calls for Washington and Tehran to return to negotiations and address unresolved issues that previously stalled diplomatic progress.

The proposal reportedly includes reopening the Strait of Hormuz and ending attacks across the region, including those by Iran-backed militias operating in Iraq against Gulf states and Jordan.

In return, the United States would lift its naval blockade on Iran and allow Tehran to resume oil exports, the official said, while noting that negotiations are still ongoing and no final agreement has been reached.

Trump’s decision to suspend the planned strikes eased tensions after several days of military escalation. Kuwait said Iranian forces launched drones into its airspace on Saturday, with its military intercepting and destroying several of the aircraft after attacks targeting infrastructure in the country’s north.

Meanwhile, talks between Iran and Oman are also progressing. The Financial Times reported, citing Iranian diplomats, that both countries are nearing an agreement on managing shipping through the Strait of Hormuz to help prevent further escalation of the conflict.

Iranian officials said discussions on a new shipping arrangement through the strategic waterway are close to completion. Foreign ministry spokesperson Esmaeil Baghaei said the proposed shipping route would differ from previous ones and clarified that it is separate from discussions on whether the strait itself would remain open or closed.