United States President Donald Trump announced on Monday that he had postponed for five days planned attacks on Iranian power plants and claimed that the US was in talks with Tehran to end hostilities in the Middle East.
However, Iranian Parliamentary Speaker Mohammad Baqer Qalibaf, expected to represent Iran in negotiations, stated on social media that no talks had taken place.
Despite this, financial markets responded positively to the prospect of diplomacy. Brent crude oil fell about 8% to around $103 a barrel, and US stocks rose more than 2%.
Iran has effectively closed the Strait of Hormuz, a critical chokepoint for roughly one-fifth of global oil and liquefied natural gas shipments.
Trump said on his Truth Social platform that the US and Iran had engaged in “very good and productive” conversations over the past two days aimed at a “complete and total resolution of hostilities.” He added that envoys Steve Witkoff and Jared Kushner had held discussions with a top Iranian official and would continue talks.
“We have had very, very strong talks… almost all points of agreement,” Trump told reporters before flying from Florida to Memphis, emphasizing the “real possibility of making a deal.” He did not disclose the Iranian counterpart but confirmed it was not Mojtaba Khamenei, the nation’s top authority.
An unnamed Israeli official and sources suggest that Qalibaf may be representing Iran and that talks could take place in Islamabad as early as this week, with Egypt, Turkey, and Pakistan acting as mediators.
While Mojtaba Khamenei holds ultimate authority, wartime decision-making has shifted significant control to the Islamic Revolutionary Guard Corps (IRGC), which influences key areas including foreign policy.
The IRGC had warned of retaliation against Israel and US targets if Trump followed through with threats to strike Iranian energy infrastructure. Washington has reportedly coordinated with Israel, which is likely to suspend strikes temporarily.
Trump had previously issued a 48-hour ultimatum, demanding Iran reopen the Strait of Hormuz by Monday evening.