US-Iran war Highlights: ‘Good chance that something could happen’ — Trump optimistic on US-Iran negotiations

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Despite Trump's comments that Tehran requested talks through diplomatic intermediaries as well as directly, leading Washington to pause military operations, Iran has denied that direct peace negotiations with the United States are underway.

Iranian Foreign Ministry spokesperson Esmaeil Baqaei said mediators were only passing messages between the two sides and that Tehran was not involved in formal talks.

"Mediators may convey messages from the American side to us regarding current developments in the region. But at present, we are not engaged in any negotiations with the United States," Baqaei said.

Speaking to reporters aboard Air Force One, Trump said the United States and Iran were engaged in discussions and suggested that a potential agreement could emerge.

"We're talking right now," Trump said.

Asked about his patience for negotiations, Trump said, "I have a lot of patience... We'll see what happens. I think there is a good chance that something could happen."

He added that diplomacy would continue only if it showed progress.

"And if it does, good, if it doesn't, we go back to doing what we were doing two days ago," Trump said.

Oil prices extended losses after US President Donald Trump said Washington was having “good talks” with Iran, raising hopes of a diplomatic breakthrough.

Brent crude futures fell 8.2%, while West Texas Intermediate (WTI) crude dropped 7.6% as markets priced in easing Middle East tensions.

A satellite image showed smoke rising from an oil facility in Abqaiq, Saudi Arabia, on July 27, 2026.

Yemen's Iran-aligned Houthi rebels claimed responsibility for targeting sensitive Saudi crude oil supply and transport sites.

The claim was made in a statement by Houthi military spokesperson Yahya Saree.

The image was released as a handout via Reuters.

US President Donald Trump said Washington is engaged in "very deep talks with Iran" but warned that the United States is prepared to take "strong military action" if diplomatic efforts fail.

"Not much time. Either it goes fast or not at all," Trump, speaking to Axios, said when asked how long he was willing to give diplomacy before considering other options.

Mediators have made progress in efforts to bring the United States and Iran back to negotiations, AP reproted citing regional officials as saying.

The diplomatic push comes after both countries paused direct attacks, easing fears of a wider regional war despite lingering tensions.

Qatar and Pakistan are leading mediation efforts to revive the interim ceasefire agreement that collapsed following recent exchanges of fire.

One regional official described the progress in the talks as "significant."

Mediators are also working with Iran and Oman on a mechanism to manage commercial shipping through the Strait of Hormuz, the focal point of the recent conflict.

The United States and Iran maintained a pause in direct attacks for a third consecutive day, raising hopes that diplomacy could prevent a broader regional conflict even as tensions remain high across the Middle East.

The lull in fighting helped ease concerns in global energy markets, sending Brent crude prices down nearly 6% to below $91 a barrel after a sharp rally last week.

Nearly all merchant vessels crossing the Strait of Hormuz in recent days have used Iran's designated shipping route, while none took the southern route backed by the US military, according to maritime intelligence reports. Shipping analysts said all tracked non-Iranian commercial vessels favoured the northern route despite ongoing geopolitical tensions.

Iran's deputy foreign minister said Tehran rejected two "extreme" US demands during negotiations, despite Washington warning that the talks would collapse if they were refused. Kazem Gharibabadi said Iran stood by its position and told the US delegation to leave rather than accept the demands.

Iranians gathered in cities across the world over the weekend to commemorate the deaths of Reza Shah and Mohammad Reza Shah Pahlavi while voicing support for exiled Prince Reza Pahlavi. Demonstrators also called for an end to the Islamic Republic, with events held in Australia, Canada and several other countries.

Ukraine's Foreign Minister Andrii Sybiha accused Iran of fuelling Russia's war by supplying Moscow with weapons, following Tehran's claim that a commercial vessel was attacked in the Caspian Sea. He also accused Iran of trying to divert attention from Russia's attacks on civilian shipping in the Black Sea and called for a strong international response at the UN Security Council.

Saudi Arabia said its air defences intercepted several drones over the past few hours, accusing Iran-backed militias in Iraq of launching the attack. The kingdom said it reserves the right to respond "at the appropriate time and place" to defend its territory and national security.

Iran's Foreign Ministry on Monday accused the United States of using an alleged violation as a pretext to break its agreement with Tehran. Spokesperson Esmail Baghaei said Washington's response was deliberate and disproportionate, accusing the US of committing "war crimes" against the Iranian people.

Israeli Prime Minister Benjamin Netanyahu said Iran will be the top priority in his talks with US President Donald Trump in Washington. He said the meeting will also focus on Israel's security and efforts to expand regional peace agreements.

An Iraqi Popular Mobilization Forces (PMF) commander said fighters linked to the group are in Iran and suggested their presence could be part of preparations for a possible ground war with the United States. He said the personnel were in southern Iran for "religious and ideological" reasons and not deployed as part of the PMF's official mission.

A loud explosion was reported near Koya in Iraq's Kurdistan Region on Monday after a suspected drone struck Mount Haibat Sultan, according to local media. Smoke was seen rising behind Koya University, while security forces launched an investigation into the incident.

An Iranian lawmaker claimed on Monday that China is providing Tehran with intelligence support, including satellite assistance, while denying any weapons transfers. He also said Iran had supplied drones to Russia during the war in Ukraine, describing the cooperation between the three countries as closer than publicly acknowledged.

Iran on Monday warned Bulgaria over the deployment of a US Air Force refuelling aircraft at a military base, saying the move could make Sofia complicit in US and Israeli strikes. Tehran also said it had not sought to resume talks with Washington, while adding that the Strait of Hormuz remains closed despite positive discussions with Oman on managing the waterway.

British Prime Minister Andy Burnham condemned recent Iranian and Houthi attacks on Saudi Arabia during a call with Saudi Crown Prince Mohammed bin Salman. The two leaders also discussed defence and trade ties, along with the humanitarian situation in Gaza.