UNITED States President Donald Trump said on Monday there was a "good chance" of reaching an agreement with Iran, but warned Washington would resume military strikes if ongoing negotiations failed to produce results.
"We're having good talks," Trump said. "I think there's a good chance that something could happen, and if it does, good, if it doesn't, we go back to doing what we were doing two days ago."
Speaking later at a campaign rally in Michigan, Trump struck a more combative tone.
"You can't bribe them. You've got to beat them, and we'll beat the hell out of them. But we'll see how it turns out. Right now, there are very friendly negotiations going on," Reuter cited hm saying.
The remarks came after Washington abruptly suspended a two-week air campaign against Iran on Saturday, marking another strategic shift in the five-month conflict.
Despite Trump's optimism, regional tensions remained elevated. Saudi Arabia, Jordan and Iraq reported drone attacks on Monday, with Riyadh saying it had intercepted drones launched by Iran-backed armed groups in Iraq targeting petroleum facilities, including sites in the Saudi capital.
Saudi Arabia said it reserved the right to respond.
Separately, Yemen's Iran-aligned Houthi movement said it had targeted Saudi Arabia's East-West Pipeline leading to the Red Sea port of Yanbu in retaliation for what it described as Saudi drone incursions.
Iran's Foreign Ministry insisted Tehran had not sought to restart negotiations with Washington.
Foreign Ministry spokesman Esmail Baghaei said indirect messages continued to be exchanged through mediators and that Iran remained committed to diplomacy, but rejected reports that Tehran had requested talks.
"This is not in our DNA," he said.
A senior Iranian official had earlier told Reuters that Tehran would suspend its own attacks as long as Trump's self-imposed ceasefire remained in force.
However, Iran's central military command later accused the United States of threatening commercial vessels and oil tankers in Iranian territorial waters while "attempting to implement an illegal maritime blockade", describing the actions as "an escalation of the conflict in the region."
Tehran also maintained that it continued to exercise control over the Strait of Hormuz, the strategically vital shipping lane through which a significant share of the world's energy supplies passes. The United States has insisted that international shipping must enjoy unrestricted passage through the waterway.
Iranian state media, citing an informed source, reported that Iranian authorities had turned back six vessels attempting to transit the Strait of Hormuz without permission.
The diplomatic developments prompted a sharp reaction in energy markets.
US crude futures fell 8.21 per cent to US$81.98 a barrel, while Brent crude declined 9.31 per cent to US$87.77, as traders responded to the suspension of US air strikes and renewed hopes for negotiations.
The decision to pause military operations reportedly followed advice from senior US commanders that the bombing campaign had reached the limits of its military effectiveness.
A US official told Reuters that military commanders had informed the President they were running out of viable targets, while Chairman of the Joint Chiefs of Staff General Dan Caine had expressed concern over the depletion of precision-guided munitions.
Trump dismissed suggestions that the United States was facing weapons shortages, saying military stockpiles were being replenished rapidly after supplies had been transferred to Ukraine.
He added that he wanted additional quantities of "the more sophisticated stuff."
The conflict has increasingly become a domestic political issue for Trump ahead of November's midterm elections.
A Reuters/Ipsos poll conducted over the weekend showed Trump's approval rating rising three percentage points to 37 per cent. However, only one in three Americans said they supported the war with Iran, with most respondents believing the President had failed to clearly explain Washington's objectives.
The United States launched its latest bombing campaign after accusing Iran of attacking commercial shipping using a maritime route promoted by Washington.
Iran insists vessels may only use a designated navigation channel closer to its coastline through the Strait of Hormuz, where it says it retains authority to regulate maritime transit.
The two-week US air campaign killed scores of people in Iran and damaged military installations, bridges and tunnels across southern parts of the country.
Four US service personnel were killed in retaliatory attacks on American military bases in neighbouring countries, while Iran also targeted civilian infrastructure in Gulf states, describing the strikes as retaliation for US military action.
Washington and Tehran reached a framework agreement in June aimed at holding formal negotiations before the end of August on key issues, including Iran's nuclear programme.
However, both sides continue to disagree over provisions relating to navigation through the Strait of Hormuz, with Washington insisting the agreement guarantees freedom of passage, while Tehran maintains it preserves Iran's authority to supervise maritime transit through the strategic waterway. -July 28, 2026
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