Key facts
- President Donald Trump announced that negotiations with Iran are currently underway.
- Trump described the ongoing talks as Iran's "last chance" to agree to a deal.
- Trump stated he would not allow Iran to impose fees on the Strait of Hormuz.
- Regional allies urged Trump against conducting strikes, believing a deal was possible.
- Global oil prices declined following the announcement.
President Donald Trump announced on Monday that negotiations with Iran are currently in progress, characterizing it as the country's "last chance" to agree to a deal. Trump stated that these talks are happening at Iran's request, with support from Saudi Arabia, the UAE, and Qatar. He also asserted that he would not permit Iran to impose fees on passage through the Strait of Hormuz.
This declaration follows Iran's earlier statement that it was negotiating with Oman to achieve an understanding regarding a temporary route through the Strait of Hormuz to permit the resumption of commercial shipping. Trump accused Iran's leadership of being "unbelievably duplicitous" for denying ongoing discussions with the U.S. while simultaneously seeking a meeting.
Trump had previously indicated that the "perimeters" of a deal had been agreed upon, which would include the reopening of the Strait of Hormuz. Iran had previously closed off the strait, leading to soaring oil prices. Trump insisted that the U.S. controlled the strait and would not permit ships to reach Iran unless a deal or "Total Surrender" was accomplished.
Trump also revealed that Saudi Crown Prince Mohammed Bin Salman, along with partners like the UAE and Qatar, had urged him to refrain from conducting strikes over the weekend, believing a deal was possible. Global oil prices experienced a decline on Monday morning in Asian trading following Trump's announcement, with Brent Crude down 4.5% and U.S.-traded oil down 4.6%. Vessel-tracking data indicated a roughly 28% drop in commercial shipping through the Strait of Hormuz compared to the previous four days.
Discussions to end the conflict, largely facilitated by mediators, had collapsed last month, ending a prior ceasefire. Trump has frequently expressed optimism about a negotiated end to the war, only for renewed tit-for-tat strikes to occur. The White House has often accused Iran of presenting different messages publicly and privately. In April, Trump had warned of severe consequences if Iran refused peace talks, which did lead to face-to-face negotiations in Pakistan, though without a deal. He later stated that planned military operations were withheld due to "serious negotiations" with Iranian leaders.