Trump says friendly talks with Iran underway amid lull in strikes

US President Donald Trump said on Monday that “very friendly negotiations” are ongoing with Iran about the conflict, as the warring sides did not exchange strikes for a third straight day. Speaking to reporters aboard Air Force One, Trump expressed optimism for an end to the war: “I think there's a good chance that something could happen.” However, he warned that Washington would “go back to doing what we were doing” before the pause if the latest negotiations fail.

Iran has denied that any direct negotiations are taking place. Trump said he decided to pause US strikes on Iran on Friday because mediating countries had asked him to give talks another chance. Iran has also halted its attacks.

The pause follows nearly two weeks of daily US strikes and tit-for-tat attacks, effectively unraveling the ceasefire reached in June. The US military had stated its strikes aimed to “degrade Iran's ability to threaten commercial shipping in the Strait of Hormuz” – a key global oil transport route.

The price of oil fell by more than 9% to $87.59 a barrel on Monday amid hopes of de-escalation.

Trump also dismissed media reports that US ammunition stockpiles were running low after five months of fighting. “We have a lot of ammunition. We have a lot of the mid-level stuff too, more than we could ever use,” he said, adding that “a lot of equipment” is being built, particularly Patriots – highly valued US-made anti-ballistic missiles.

White House spokesperson Anna Kelly said the US military “has more than enough munitions, ammo, and stockpiles to serve all of President Trump's strategic goals and beyond.” She added that the president has urged defense contractors to constantly produce more American-made weapons.