Agencies
Dubai
Hopes rose that the Iran war could begin winding down after US President Donald Trump said his government was holding productive talks with Tehran, but fighting showed no signs of slowing and Iran denied any talks.
Trump extended his deadline for Iran to reopen the Strait of Hormuz on Monday, saying the US would hold off striking Iranian power plants for five more days to allow envoys to hold talks with a “respected” Iranian leader.
Iranian officials said Trump had backed down “following Iran’s firm warning”. “No negotiations have been held with the US, and fake news is used to manipulate the finan-cial and oil markets and escape the quagmire in which the US and Israel are trapped,” Iran’s Parliament speaker Mohammad Baqer Qalibaf wrote on X.
Relief that had swept through financial markets on Monday, as oil prices eased following earlier losses after Trump’s announcement, was in jeopardy on Tuesday following Qalibaf’s statement. Brent crude futures rose 4.2% to $104.21 a barrel, reversing part of their 10% slide on Monday, while US crude rose 4.3% to $91.93 per barrel.
Meanwhile, the Israeli military said Iran launched multiple waves of missiles at Israel after Trump postponed a threat to bomb the Islamic Republic’s power grid.
A European official said that while there had been no direct negotiations between the two countries, Egypt, Pakistan and Gulf states were relaying messages. A Pakistani official and another source told Reuters that direct talks on ending the war could be held in Islamabad as soon as this week.
With thousands more US Marines on their way to the Gulf, continued barrages from both sides and Iran denying any negotiations, the tempo of the war remained high a day after Trump.
Any talks between the US and Iran would face major challenges. Many of Washington’s shifting objectives remain difficult to achieve. It is also unclear who within Iran’s government would have the authority or willingness to negotiate, as Israel has vowed to continue targeting leaders after killing several.
Iran remains highly suspicious of the United States, which it said has attacked during high-level diplomatic engagements under the Trump administration.
