Israel continues to target Iran, despite Trump's announcement of a five-day pause from the US. In its latest strikes, Tel Aviv struck several Iranian cities, including Isfahan, which is known for its nuclear and energy facilities. Hindustan Times reported.
Meanwhile, Pakistan has emerged as one of the key mediators for the conflict between Iran and the US, with PM Shehbaz Sharif offering to host talks between Washington and Tehran.
Iran, Trump not on same page over talks
In a post on Truth Social, Donald Trump said that Tehran wants to "make a deal" after “productive talks”, and the Islamic Republic denying any such discussions, declaring that the Republican leader had 'backed down'.
The President stated that the US and Iran have been holding talks over the past two days, adding that the discussions are "very strong" with "major points of agreement".
Trump also announced that, as a result of these talks, the US has decided to pause strikes on Iranian energy infrastructure for five days.
Based on the tenor and tone of these in depth, detailed, and constructive conversations, which will continue throughout the week, I have instructed the Department of War to postpone any and all military strikes against Iranian power plants and energy infrastructure for a five day period, subject to the success of the ongoing meetings and discussion," Trump wrote in his post.
However, Iran denied that it had engaged in negotiations with the US. Both the Iranian foreign minister and the Parliament Speaker dismissed talks with America.
Iranian parliament speaker Mohammad Baqer Ghalibaf said that there had been no such talks with the US, and ridiculed the suggestion as an attempt to manipulate financial markets.
"No negotiations have been held with the U.S., and fakenews is used to manipulate the financial and oil markets and escape the quagmire in which the US and Israel are trapped," he wrote in a post on X.
"Iranian people demand complete and remorseful punishment of the aggressors. All Iranian officials stand firmly behind their supreme leader and people until this goal is achieved," he added.
Oil prices took a plunge as soon as Trump announced the halting of US strikes on Iranian energy infrastructure. Crude prices sank as much as 14 per cent after rising around one per cent earlier in the day.
Meanwhile, international benchmark Brent North Sea crude fell 6.7 per cent at $104.70 per barrel. The main US oil contract West Texas Intermediate was down 6.9 per cent to $91.4 per barrel, having previously soared past $100.
However, Iran's denial that it had held talks with the US had a negative impact. Oil prices rose on Tuesday, with Brent rising $104 per barrel, and the US West Texas Intermediate climbing 4 per cent.
Tim Waterer, chief market analyst at KCM Trade, reportedly said, "By shelving the plan to strike Iranian power plants for five days, the U.S. effectively sucked much of the 'war premium' from the oil price."
"Today's moderate bounce is just the market finding its footing in the mud. Traders are aware that while the missiles are on hold, the Strait of Hormuz is still far from a clear waterway," he was quoted as saying by Reuters.
