US President Donald Trump has said fresh negotiations with Iran will begin on Monday, after cancelling what he described as planned "massive" strikes on the country. He told reporters aboard Air Force One that he had held off military action because Iran and regional allies believed a deal was close, though Tehran has disputed this account and accused him of lying. The development matters because it marks another twist in months of alternating threats and diplomacy since fighting began in late February, with global oil markets reacting immediately to the prospect of de-escalation.

Trump said Saudi Arabia's Crown Prince Mohammed bin Salman and other regional partners, including the UAE and Qatar, had urged him not to strike over the weekend, claiming agreement was near on both the Strait of Hormuz and Iran's nuclear programme. Brent crude fell 4.5% to $83.98 and US crude dropped 4.6% to $80.74 following his announcement, reflecting the strait's importance as a route for roughly a fifth of global oil and LNG supplies. Iran's Mehr news agency denied requesting a pause, while Foreign Minister Abbas Araghchi said talks with Oman on a Hormuz deal were nearing completion; the venue and attendees for Monday's talks have not been confirmed, and Trump gave no deadline for reaching an agreement.