Trump says Iran talks to resume after US called off major attack
President Trump said negotiations with Iran will restart after a planned US attack was scrapped. Oil prices fell as de-escalation signs emerged, with Tehran signaling progress on a Strait of Hormuz deal via Oman.
President Donald Trump announced that talks with Iran would resume after the United States called off a major attack, according to a statement that sent oil prices lower as markets welcomed signs of de-escalation. The development comes as Iran said a deal with Oman to reopen the strategic Strait of Hormuz to shipping was close, a move that could relieve a key global energy chokepoint.
Oil Falls as Risk Premium Eases
Crude prices declined on reports of reduced tensions between Washington and Tehran, reversing some of the gains that had built up amid fears of military confrontation. The potential for conflict had threatened to disrupt oil supplies from the Persian Gulf, where the Strait of Hormuz handles a significant share of the world's petroleum shipments. News that the US halted an planned offensive and would pivot to diplomacy prompted traders to unwind some of the geopolitical risk premium.
Tehran's Diplomatic Signal via Oman
Iranian officials said negotiations with Oman regarding the reopening of the Strait of Hormuz were nearing completion. While details remain scarce, the prospect of a deal would be a major step toward stabilizing maritime traffic in one of the world's most sensitive waterways. Oman has often served as a mediator between Iran and the West, and its involvement suggests a possible avenue for broader engagement. The announcement aligns with the narrative of easing tensions and could pave the way for a resumption of formal talks.
From Attack to Diplomacy
The decision to call off the attack marks a sharp reversal in the Trump administration's approach to Iran, which has alternated between coercive pressure and offers of negotiation. The president's statement on resuming talks indicates a willingness to pursue a diplomatic track, despite previous confrontational rhetoric. The exact conditions for the talks remain unclear, but they appear to be a response to intensifying economic and security concerns on both sides. Meanwhile, the oil market's reaction reflects a cautious optimism that armed conflict may still be avoided.
Oman's Role as Intermediary
Oman's potential role in reopening the strait underscores its unique position as a neutral broker in Gulf disputes. A successful agreement could not only ease oil flows but also create a channel for addressing other contentious issues, such as Iran's nuclear program and regional military activities. However, past negotiations have often stumbled over mutual distrust and red lines.
What Happens Next
As talks are set to resume, observers will watch for concrete signs of commitment from both sides. The reopening of the Strait of Hormuz, if achieved, would be a tangible outcome with global economic benefits. Yet, the path to a broader deal remains fraught with complexities, and the cancellation of the attack does not guarantee a lasting peace. The world's energy markets, and no less the region's stability, hang in the balance as Washington and Tehran test the diplomatic waters once more.