
Diplomatic push from Saudi Arabia, Qatar and UAE halts U.S. strikes on Iran. Oil markets eye Strait of Hormuz reopening as talks start Monday.
President Donald Trump said Sunday he had called off new strikes against Iran after Gulf allies Qatar, Saudi Arabia and the United Arab Emirates asked for a diplomatic deal instead of further military action.
Speaking to reporters on Air Force One, Trump said Saudi Arabia's king and crown prince told him they preferred a negotiated settlement. "They said, we would much prefer a deal," Trump said. "Because you don't know where these attacks lead. They will be flooded with people pouring into their country, and it will be a disaster."
The decision marked a sharp reversal from a day earlier, when Trump warned the U.S. military would "be hitting them very hard." On Sunday, he said negotiations with Iran would begin Monday afternoon, focusing on reopening the Strait of Hormuz and addressing Iran's nuclear program.
Tehran denied Trump's claim that it had asked the U.S. not to strike, saying its armed forces were prepared for any military action. The back-and-forth leaves the five-month-old war in a fragile state. Months of on-and-off diplomacy had produced an interim deal, but tit-for-tat strikes resumed last month after a period of relative calm.
Trump cited concerns over U.S. military resources, including a depleting stockpile of Patriot missile interceptors. The war has strained American munitions, and any escalation risked a broader regional conflict that Gulf allies said would generate a flood of refugees.
For oil markets, the immediate risk of a strike on Iranian energy infrastructure has receded. Brent crude, which had pierced $100 after the U.S. struck Iranian targets from the Caspian to the Gulf, slipped on the news of a potential diplomatic thaw. The Strait of Hormuz, a vital shipping lane that has remained largely shut since the conflict began, is now the central negotiating point. A reopening would ease global supply fears, but the talks are in their earliest stages.
Defense stocks that had rallied on escalation fears could give back some gains if negotiations gain traction. The path to a lasting deal remains uncertain. Trump's own rhetoric has swung sharply, and Iran has denied any request for talks.
The negotiations begin Monday. No date has been set for a follow-up meeting.
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.