Trump Sees 'Good Chance' Of Progress In Iran Talks As Truce Holds; Drones Intercepted Near Saudi Oil Sites

US President Donald Trump on Monday expressed cautious optimism that renewed diplomacy could produce a negotiated end to the conflict with Iran, as both sides observed a third straight day without strikes.

Diplomatic Pause and U.S. Position

The temporary pause began early Saturday after 13 consecutive nights of renewed US strikes on Iran, triggered by a breakdown in diplomacy over Tehran's blockade of the Strait of Hormuz. Speaking aboard Air Force One, Mr. Trump said he was hopeful the latest mediating efforts could yield results.

'I have a lot of patience... We'll see what happens. I think there is a good chance that something could happen,' he told reporters.

Trump told Axios that countries acting as intermediaries had asked Washington to "hold fire" while diplomacy continued, and warned that if talks failed the United States would resume its previous military posture. He also dismissed reports that US ammunition stocks were dangerously low, saying the military had ample supplies.

Tehran's Response

Tehran denied it was engaged in direct negotiations with Washington. Iranian foreign ministry spokesman Esmaeil Baqaei said mediators might convey messages from the American side but that Iran was not, at present, negotiating with the United States. He also sharply criticized US behavior, saying it 'resembled that of a mafia gang that adheres to no rules or laws,' and warned such conduct undermined prospects for a reasonable process.

Regional Flare-Ups Despite the Lull

Despite the ceasefire between Washington and Tehran, regional violence continued. Saudi Arabia's defence ministry said it intercepted several drones launched by Iran-linked groups in Iraq that were reported to be targeting oil facilities; no group immediately claimed responsibility. Pakistan, which has been involved in mediation efforts, condemned the strikes as a threat to regional stability. Yemen's Iran-backed Houthi rebels separately claimed responsibility for drone attacks on Saudi oil infrastructure, saying they were retaliation for Saudi actions; Riyadh had not immediately confirmed that claim.

The Israeli military, which has not been a participant in the recent exchanges, said it intercepted two drones near the Jordanian border and was probing their origin.

Strait Of Hormuz And Shipping Risks

Control of the Strait of Hormuz remains a major obstacle to any durable settlement. Iran insists on a role in managing the strategic corridor, and the Islamic Revolutionary Guard Corps (IRGC) has been stopping vessels attempting to transit the route. Iranian state media reported that six vessels had sailed outside Iran's designated route in recent days.

Tehran said it had held talks with Oman on shared principles and operational mechanisms to ensure safe passage through the strait. Muscat and Tehran earlier said they would consider measures including service fees for transit — a move the United States opposes — and tensions rose after Oman suggested ships could transit via Omani waters.

Market Impact

Global markets reacted positively to the truce: international benchmark Brent crude fell roughly 6% to about $86 a barrel, and stock markets rallied on Monday amid optimism that the pause could ease pressure on energy supplies and shipping.

What Happens Next

With mediators actively engaged and both sides holding fire for now, the situation remains fragile. Washington has signaled it will resume strikes if talks fail, while Tehran continues to insist it is not negotiating directly with the United States. The control and safe passage of shipping through the Strait of Hormuz — and the actions of allied militias and regional actors — will be central to whether the pause leads to sustained diplomacy or a return to hostilities.