President Donald Trump says he has canceled a planned U.S. attack on Iran after Tehran and other Middle Eastern countries asked for time to finalize a deal reopening the Strait of Hormuz and ending Iran's nuclear program. Iranian officials dispute that account, and oil prices remain elevated after weeks of expanding strikes across the Gulf and Red Sea.
Trump agrees to pause strikes for a deal
Trump said late Saturday the United States would hold off on a fresh attack on Iran while negotiators try to reach a deal covering the Strait of Hormuz and Tehran's nuclear program. He wrote on Truth Social that Iran and other Middle Eastern countries asked for time to complete an agreement calling for the immediate, complete reopening of the strait and an end to Iran's nuclear threat, a post that followed a call with Saudi Crown Prince Mohammed bin Salman.
According to Reuters, Trump wrote he had agreed to cancel the attack, subject to being able to rapidly make a DEAL, adding that Israel joins him in the commitment. The Saudi crown prince stressed the need to prioritize dialogue to de-escalate tensions in the region, according to Saudi state media.
Iran disputes Trump's account
Iran's semi-official Mehr news agency reported that unidentified military officials dismissed Trump's version of events as false, aimed at pressuring Gulf Arab states. They said Iran's forces remain at the highest level of readiness regardless of whether the U.S. escalates or withdraws, warning any confrontation would be settled on the battlefield.
Foreign Minister Abbas Araqchi told Saudi Arabia's foreign minister that any strikes by the U.S. or Israel, or participation by regional countries, would draw a proportionate response. He separately told Turkish and Pakistani officials that Tehran would respond decisively to further U.S. action. Kuwait's army said it had destroyed hostile drones Iran launched against several vital facilities.
Oil markets react to escalating incidents
Brent crude futures jumped 24% after an April ceasefire collapsed last month, and analysts polled by Reuters expect prices to rise further this year. On Friday, WTI settled at $84.67 a barrel after gaining more than 1%. Brent crude closed at $90.12, also up more than 1%. Both benchmarks had still fallen more than 5% for the week after a selloff Monday on hopes of de-escalation.
The Strait of Hormuz, which carried 20% of the world's oil and LNG supplies before the war, has been largely closed by Iran, stoking energy costs and broader inflation. Iran's Houthi allies in Yemen have also begun threatening the Bab el-Mandeb strait at the other end of the Red Sea, another route for Saudi crude exports. The United Kingdom Maritime Trade Operations said it received reports of two incidents off Oman, including a tanker struck by an unknown projectile that damaged its engine room.
Trump has argued that keeping Iran from nuclear weapons justifies higher fuel costs in the near term, but the economic pain has put political pressure on him to find a way to end the war.
Sources: Commodities & Futures News, US Top News and Analysis
Trading involves risk.
Risk Disclaimer
