United States President Donald Trump has announced that negotiations with Iran will begin on Monday, signalling a potential diplomatic breakthrough after he halted plans for new military strikes against Tehran, a move that has renewed hopes of easing tensions and restoring stability to global energy markets.
Speaking to reporters aboard Air Force One on Sunday, Trump said negotiations with Iran would commence on Monday afternoon, although he declined to disclose the venue or the participants involved.
“Now what we’re doing is we’re talking to them in the form of a negotiation. It begins tomorrow afternoon,” Trump said.
The US president revealed that he suspended the planned military operation following appeals from Saudi Arabia, the United Arab Emirates, Qatar and Iran, expressing optimism that an agreement covering the reopening of the Strait of Hormuz and Iran’s denuclearisation was close.
“A deal covering the Hormuz Strait and Iran’s denuclearisation is imminent,” Trump said.
His latest remarks marked a dramatic shift from comments made a day earlier when he warned that the United States was prepared to launch what he described as its biggest military operation since World War II if diplomacy failed.
The announcement immediately boosted investor confidence, with oil prices tumbling on expectations that a diplomatic solution could restore normal shipping through the Strait of Hormuz, one of the world’s most strategic energy corridors.
West Texas Intermediate crude for September delivery fell nearly six per cent to $79.66 per barrel, while Brent crude for October delivery dropped 5.16 per cent to $83.39 per barrel.
The Strait of Hormuz, which handled about one-fifth of global oil supplies before the conflict escalated, has experienced severely reduced shipping traffic in recent weeks, with vessel movements only briefly increasing following signs of diplomatic progress.
Despite the optimism, analysts cautioned that significant risks remain.
BMI, a research unit of Fitch Solutions, said prospects for a broader diplomatic agreement on reopening the Strait of Hormuz remained achievable before the end of the quarter, although it raised the probability of a renewed escalation scenario to 35 per cent from 25 per cent because of increasing 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 said.
The research firm noted that negotiations involving Iran and Oman, potentially supported by Gulf states, China and the United States, were increasingly focused on establishing a long-term post-conflict framework for managing commercial shipping through the strategic waterway.
Security concerns nevertheless persist.
The United Kingdom Maritime Trade Operations (UKMTO) reported that a tanker sailing about 20 nautical miles northeast of Khasab, Oman, near the entrance to the Strait of Hormuz, experienced an explosion close to the vessel on Sunday evening. The ship and its crew were reported safe, while authorities launched an investigation and advised vessels transiting the area to exercise caution.
Meanwhile, further details have emerged about the diplomatic proposal being advanced by the United States.
According to the Associated Press, citing a regional official involved in the mediation efforts, the proposal calls for Washington and Tehran to resume negotiations aimed at resolving the key issues that had previously derailed diplomatic talks.
The plan reportedly includes reopening the Strait of Hormuz, ending attacks across the region—including strikes by Iranian-backed militias in Iraq against Gulf Arab states and Jordan—and allowing commercial shipping to resume safely.
In return, the United States would lift its naval blockade of Iran and permit Tehran to resume oil exports. However, the official stressed that no final agreement had yet been reached and mediation efforts were continuing.
Trump’s decision to pause military action has eased tensions following several days of escalating hostilities across the Gulf.
Kuwait announced on Saturday that Iranian forces launched multiple drones into its airspace after Iran targeted critical infrastructure in the country’s north. Kuwaiti forces said they intercepted and destroyed several of the unmanned aircraft.
At the same time, diplomatic efforts involving Oman are also progressing.
According to the Financial Times, Iranian officials said Tehran is close to reaching a new agreement with Muscat on managing shipping through the Strait of Hormuz, a move regarded as critical to preventing further escalation of the conflict.
Iranian Foreign Ministry spokesperson Esmaeil Baghaei said negotiations with Oman over the future management of the waterway were in their final stages.
Baghaei noted that the proposed shipping route would differ from those used before the conflict and clarified that the arrangement was separate from broader discussions on whether the Strait of Hormuz would remain open or closed.
The outcome of Monday’s negotiations is expected to be closely watched by governments, financial markets and the global energy industry, with any breakthrough likely to have significant implications for regional security and international oil supplies.
Boluwatife Enome
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