Iran denies planned talks after Trump calls off strikes

President Donald Trump said Sunday that negotiations with Iran are set to begin Monday afternoon after he called off what he described as a planned large-scale military assault on the country, sending oil prices tumbling and Treasury yields lower as markets priced in hopes of a diplomatic resolution to the conflict that has disrupted global energy supplies.

Canceled Strikes and Conditions

Trump announced the decision late Saturday on his Truth Social platform, a day after U.S. media reported that Washington and Israel were preparing to strike Iran's energy infrastructure. Speaking to reporters aboard Air Force One on Sunday, Trump said he was asked by Saudi Arabia, the United Arab Emirates, Qatar, and Iran to "hold off any attack in that the perimeters of a deal has been agreed to".cnbc+1

"What we're doing is we're talking to them in the form of a negotiation. It begins tomorrow afternoon," Trump said Sunday, without disclosing the venue or participants. He said the agreement would bring the "Immediate, Complete, and Total OPENING OF THE HORMUZ STRAIT" and end what he called "Iran's nuclear threat". Axios reported that Saudi Crown Prince Mohammed bin Salman called Trump on Saturday urging him to cancel the strikes and return to negotiations.aljazeera+1

Iran Pushes Back

Iran rejected Trump's characterization of the talks. The Washington Post reported Monday that Iranian Foreign Ministry spokesman Esmaeil Baqaei said Iran had no plans to send or receive any negotiating delegations. Iran's Fars News Agency quoted a source close to the negotiating team as saying Tehran has not agreed to reopen the Strait of Hormuz, with a military source stating the strait will remain closed "as long as the United States continues its hostile actions".nhk+1

Baqaei did reveal that Iran has reached an understanding with Oman on a new transit route through the Strait of Hormuz, though he said this had "nothing to do with reopening the strait".nhk

Market Reaction

Oil prices fell sharply on Monday. Brent crude futures sank more than 6% to around $82.41 a barrel, according to Reuters, while West Texas Intermediate dropped roughly 4% to $80 per barrel. Both benchmarks had surged over 20% in July amid renewed hostilities.dmarketforces+1

U.S. Treasury yields also declined, with the 10-year note falling to 4.69%, a decrease of 0.05 percentage points from the previous session, as investors responded to de-escalation signals, CNBC reported. The moves follow a pattern seen throughout the conflict, in which diplomatic overtures have repeatedly driven down energy prices and borrowing costs before negotiations stall.cnbc+1