Trump Signals Iran Talks as Markets Rally, Oil Prices Slide on Hopes of Strait Reopening—-President Donald Trump announced that the United States is engaged in high-level negotiations with Iran to end the three-week-long war, raising hopes of easing global energy tensions and reopening the critical Strait of Hormuz.

Speaking on Monday, Trump said both sides had held “very good and productive conversations” over two days, with further discussions expected throughout the week. It marked his first public acknowledgment of direct talks since the U.S. and Israel began coordinated strikes on Iran on February 28, targeting military and leadership structures.

The prospect of de-escalation immediately lifted global markets, with the S&P 500 and Dow Jones Industrial Average both rising more than 1 percent. Oil prices also dropped sharply, with Brent crude falling about 10 percent, as investors bet that Iran’s blockade of the Strait of Hormuz could soon be lifted.

The waterway, which carries roughly 30 percent of global crude oil shipments, has been effectively shut down due to Iranian threats and attacks on shipping, triggering a global energy crunch and pushing fuel prices higher worldwide.

Trump revealed that he had ordered a five-day pause on planned U.S. strikes against Iranian energy infrastructure to allow negotiations to progress. The move temporarily delays a previously issued 48-hour ultimatum demanding that Tehran reopen the strait or face attacks on its power facilities.

“We have had very strong talks… I think if they carry through, it’ll end that problem,” Trump told reporters, expressing optimism about reaching a resolution that could also address Iran’s nuclear ambitions.

However, Iranian officials pushed back on Trump’s claims. The country’s Foreign Ministry dismissed the characterization of ongoing negotiations, insisting that Tehran’s position remains unchanged: any talks must be preceded by a halt to U.S. and Israeli military actions. Iran has also demanded guarantees against future attacks and compensation for war-related losses.

Meanwhile, Benjamin Netanyahu confirmed he had spoken with Trump but signaled that Israel would continue its military operations, emphasizing that national security interests would be protected regardless of diplomatic efforts.

Beyond reopening the strait, key sticking points remain unresolved, including the fate of Iran’s nuclear program and its stockpile of highly enriched uranium. Analysts warn that while market optimism is rising, volatility will persist unless a concrete agreement is reached.

Despite the dip in oil prices, they remain significantly elevated compared to pre-war levels, with U.S. gasoline prices nearing four-year highs. Experts caution that failure to reopen the Strait of Hormuz in the coming weeks could send crude prices soaring again, potentially exceeding historic records.

As diplomatic efforts intensify, global markets—and governments—are closely watching whether negotiations can deliver a lasting ceasefire or if tensions will escalate once more.