U.S. President Donald Trump said negotiations involving Iran were expected to begin on Monday afternoon. He also suggested that an agreement concerning the Strait of Hormuz could be close.
Speaking to reporters aboard Air Force One on Sunday evening, Trump said the United States was communicating with Iran through negotiations.
“We’re talking to Iran in the form of a negotiation,” Trump said. He added that the process was expected to begin on Monday afternoon.
However, Iran subsequently said that no direct negotiations with the United States were currently underway. Tehran confirmed that separate discussions with Oman continued over maritime transit through the Strait of Hormuz.
The conflicting statements underline the uncertainty surrounding the latest diplomatic initiative.
Trump says a Hormuz agreement may be imminent
Trump said Saudi Arabia believed an agreement with Iran could be reached soon. According to the president, the potential arrangement would address both navigation through the Strait of Hormuz and Iran’s nuclear programme.
“A deal is imminent having to do with the Hormuz Strait and ultimately the denuclearization of it,” Trump told reporters.
Nevertheless, Tehran has not confirmed that a comprehensive agreement is close. Iranian officials have instead described the Oman-mediated talks as discussions about operational arrangements for safe maritime passage.
The distinction is important. A transit arrangement involving Oman would not necessarily represent a broader agreement between Washington and Tehran.
Planned U.S. strike was cancelled
Trump also confirmed that the United States remained prepared to attack Iran if diplomacy failed.
The president said he had cancelled a major military operation that was scheduled for Saturday. He described the planned action as a “massive attack” against Iran.
According to Trump, discussions involving Saudi Arabia, the United Arab Emirates, Qatar and Iran influenced his decision to suspend the operation.
The cancellation represented a notable step towards de-escalation. However, Trump indicated that military action remained an option if negotiations did not produce results.
Oman plays a central role in Hormuz discussions
Iranian Foreign Minister Abbas Araghchi said talks with Oman concerning the Strait of Hormuz had reached an advanced stage.
Iranian Foreign Ministry spokesperson Esmaeil Baghaei also confirmed that the two countries were discussing a possible transit route through the strait. The negotiations focus on mechanisms that could allow vessels to pass safely through the strategic waterway.
Oman and Iran are both coastal states bordering the Strait of Hormuz. Their officials have held several rounds of political, legal and technical consultations on maritime security and freedom of navigation.
Oman has also supported continued dialogue surrounding the wider U.S.–Iran memorandum of understanding signed in June.
Iran denies that the strait has been fully reopened
Tehran said on Sunday that it had not yet approved a final agreement to reopen the Strait of Hormuz. Iranian officials maintained that the country’s policy concerning the waterway had not changed.
Iran effectively restricted passage through the strait in response to what it described as U.S. military aggression.
Tehran argues that safe and unrestricted navigation cannot fully resume while American attacks continue. This position could complicate efforts to convert the Oman talks into a lasting settlement.
The Strait of Hormuz remains one of the world’s most important energy corridors. A substantial share of global oil and liquefied natural gas exports passes through the waterway.
Consequently, any disruption can quickly affect oil prices, shipping costs and inflation expectations.
Weeks of retaliatory strikes damaged the peace process
The cancelled U.S. operation followed approximately two weeks of retaliatory attacks between Washington and Tehran.
During the escalation, the United States reportedly considered targeting Iranian energy infrastructure. Tehran warned that such an attack would trigger severe retaliation against American and regional interests.
The exchanges largely undermined the memorandum of understanding signed by the two sides in June.
Regional mediators, including Pakistan, Saudi Arabia and Qatar, subsequently intensified efforts to preserve the diplomatic framework. Their involvement appears to have contributed to the latest pause in military operations.
However, the underlying disputes remain unresolved. These include Iran’s nuclear programme, regional security and the rules governing maritime traffic through Hormuz.
Oil prices fall as markets price in de-escalation
Oil prices fell sharply in early Monday trading following Trump’s announcement.
Brent crude dropped by more than 5%, while U.S. West Texas Intermediate crude declined by approximately 6% during early trading. The market reacted to the cancellation of the planned strike and the prospect of renewed diplomacy.
The price movement showed how strongly energy markets remain tied to developments surrounding the Strait of Hormuz.
A credible agreement could reduce the geopolitical risk premium that has pushed oil prices higher. It could also improve expectations for energy supplies from the Persian Gulf.
However, any recovery in maritime traffic will depend on the terms of an eventual agreement and its implementation.
Traders will therefore monitor official statements from Washington, Tehran and Muscat. They will also watch for evidence that commercial shipping can pass through the strait without further disruption.
What happens next?
The next phase will reveal whether the latest diplomatic activity represents a genuine breakthrough or another temporary pause.
The immediate focus is likely to remain on a practical transit arrangement negotiated by Iran and Oman. Such an agreement could create a protected route for commercial vessels.
A broader U.S.–Iran settlement would be more difficult. It would need to address Iran’s nuclear activities, sanctions, regional military operations and security guarantees.
Trump’s decision to cancel the planned strike has created space for diplomacy. Nevertheless, his warning that the United States remains prepared to use military force means the risk of renewed escalation has not disappeared.
Summary
Donald Trump said negotiations involving Iran would begin on Monday and suggested that an agreement concerning the Strait of Hormuz was imminent.
Iran later said that no direct negotiations with the United States were currently taking place. Tehran confirmed that it was continuing separate talks with Oman about safe maritime transit through the strait.
Trump also cancelled a major planned strike against Iran after discussions with several regional governments. The decision reduced immediate escalation risks and sent oil prices sharply lower.
However, no final agreement to reopen the Strait of Hormuz has been confirmed. The diplomatic process remains fragile, while military action could return if negotiations fail.
