Investing.com — U.S. President Donald Trump said Monday he has instructed the Pentagon to temporarily postpone military strikes against Iranian power plants and energy infrastructure for a five-day period, while expressing confidence that oil prices will plunge once a deal is finalized.
The decision came after what he described as “productive” conversations between the United States and Iran over the past two days.
“Based on the tenor and tone of these in depth, detailed, and constructive conversations, which will continue throughout the week, I have instructed the Department of War to postpone any and all military strikes against Iranian power plants and energy infrastructure for a five day period, subject to the success of the ongoing meetings and discussions,” Trump wrote in a social media post.
Speaking to reporters outside Air Force One later Monday, Trump said Iran “wants to make a deal very badly” and predicted oil prices would “drop like a rock” as soon as an agreement is reached. He added that the U.S. would like to see “as much oil as possible in the market.”
Trump also said the Strait of Hormuz, a crucial waterway through which one-fifth of the world’s oil flows, will be “jointly controlled” and will reopen “very soon if it works,” though he stopped short of offering guarantees.
Talks between the U.S. and Iran are due to continue over the phone on Monday, Trump claimed. U.S. Special Envoy to the Middle East Steve Witkoff and Jared Kushner, Trump’s son-in-law, would be on the call for the U.S., the president said.
The president confirmed the U.S. is speaking with a “top person” in Iran, but clarified it is not Iran’s Supreme Leader Ayatollah Mojtaba Khamenei. Trump said he has not heard from Khamenei, a son of former leader Ayatollah Ali Khamenei, who was slain by bombardments at the outset of the war. But Trump added that “Iran does have some leaders left.”
Trump said he did not initiate contact with Iran. “I didn’t call, they called; they want to make a deal,” he said, adding that the U.S. is “very willing to make a deal.”
The president outlined U.S. demands, saying Washington does not want to see Iran obtain a nuclear weapon nor have the ability to enrich uranium. He added that Israel, who has been carrying out a joint campaign with the U.S. against Iran since late February, “will be very happy with what we have on Iran.”
Trump reiterated that he views Iran as having been an imminent threat prior to the outbreak of the war.
However, Iran’s ministry of foreign affairs said the country was not speaking with the U.S. on a ceasefire and called Trump’s statement a play to “reduce energy prices and buy time for implementing his military plans,” the New York Times reported, citing Iranian state-run news agency Mizan.
According to Iran’s Fars News Agency, there are no direct or indirect communications with the United States. A senior security official also called Trump’s comments “psychological warfare,” according to Tasnim News Agency.
Trump, who is under increasing domestic pressure over the war, had previously given Iran until Monday night to reopen the Strait of Hormuz or face air strikes on the country’s power plants. Tehran rebuffed the ultimatum, saying the strait, which has been effectively shuttered by the threat of Iranian attacks on vessels, will stay “completely closed” should these sites be hit.
Iran’s Revolutionary Guards also said they would target Israel’s power plants and those supplying U.S. bases in the Middle East in retaliation.
Stock market on Wall Street rallied after Trump’s post, with the benchmark S&P 500 last rising 2.1%.
Swings in oil prices were also dramatic. , the global benchmark, retreated below $100 a barrel, a level the contract has been trading above for several days.
The U.S. 10-year Treasury yield also dropped, while erased some earlier losses and the U.S. dollar weakened.
(Louis Juricic and Vlad Schepkov contributed reporting.)