Trump says 'good chance' of progress in Iran talks as foes hold fire

US President Donald Trump voiced optimism Monday about a negotiated peace deal with Iran, as the two nations held their fire for a third straight day. The pause follows 13 nights of renewed US strikes on Iran, triggered by a diplomatic breakdown over Tehran's blockade of the Strait of Hormuz.

Is Iran negotiating with Trump?

Tehran denies that formal negotiations are underway. Iranian foreign ministry spokesman Esmaeil Baqaei said mediators may be relaying messages from Washington but confirmed no direct talks are taking place with the United States. Trump insists otherwise, telling a Michigan audience that Iranian officials are "talking to us about making a deal."

The two sides paused fighting Friday, offering a rare window for diplomacy in a war that began in late February with a wave of US-Israeli strikes. Speaking aboard Air Force One, Trump said he has "a lot of patience" and believes "there is a good chance that something could happen." He also warned that failed talks would mean a return to the fighting that preceded the pause.

Are US ammunition supplies running low?

Trump dismissed concerns Monday that nearly five months of conflict had strained US military stockpiles. "We have a lot of ammunition. We have a lot of the mid-level stuff too, more than we could ever use no matter what," he said aboard Air Force One. His comments came as questions mounted over the sustainability of continued US strikes on Iran.

Why was Saudi Arabia attacked?

Despite the lull in the wider war, Saudi Arabia came under attack Monday. The kingdom's defense ministry said it intercepted several drones fired by Iran-linked groups based in Iraq, targeting Saudi oil facilities. No group claimed responsibility, but Riyadh called on Baghdad to prevent further attacks from being launched off Iraqi soil.

Iraqi Prime Minister Ali al-Zaidi called for an investigation into the Saudi allegations. Pakistan, which has been mediating the broader Middle East conflict, condemned the drone strikes, saying they "pose a grave threat to peace and stability" in the region. Yemen's Iran-backed Houthi rebels also claimed drone attacks on Saudi oil infrastructure, saying they were retaliation for Saudi drone incursions. Riyadh has not commented on that claim.

Saudi Arabia and other Gulf states previously accused pro-Iran militias in Iraq of launching similar waves of attacks earlier in the conflict, though those groups had not claimed strikes since fighting resumed. Separately, Israel's military, which has stayed out of the recent fighting, said it intercepted two drones near the Jordanian border and is investigating their origin.

How are markets reacting to the Iran ceasefire?

Global stock markets rallied Monday and oil prices fell sharply following the pause in US-Iran strikes. Brent crude, the international benchmark, dropped six percent to around $86 a barrel. The decline offered relief to Gulf shipping operators and the wider oil industry, both of which had been rattled by weeks of renewed hostilities.

What is the dispute over the Strait of Hormuz?

Control of the Strait of Hormuz remains the central obstacle to a lasting peace, with Iran insisting on managing the vital oil and gas route. Iran's Revolutionary Guards have continued stopping vessels attempting to transit the strait, including six ships that state television said Monday had sailed outside Iran's designated route.

Tehran says it has held recent talks with Oman, which also borders the strait, on "common principles and operational mechanisms" for safe shipping passage. In June, Oman and Iran discussed imposing service fees on vessels, a move Washington opposes. Oman further angered Tehran by saying ships could transit the strait through Omani waters, prompting Iran to attack vessels in response.

Baqaei said Monday that the United States was not involved in Iran's recent discussions with Oman. He criticized Washington directly, saying its conduct in recent years has "resembled that of a mafia gang that adheres to no rules or laws."