U.S. President Donald Trump on Monday claimed that Washington had held “very good” talks with an unidentified Iranian official, even as Tehran swiftly denied that any negotiations were underway.

The remarks came after Trump unexpectedly stepped back from plans to launch fresh strikes on Iran, while U.S. ally Benjamin Netanyahu reaffirmed that Israel would continue its military campaign against Iranian targets and its allies in the region.

According to reports by Reuters and Axios, U.S. negotiators Steve Witkoff and Jared Kushner may meet an Iranian delegation in Pakistan later this week. Vice President J.D. Vance is also expected to join the talks, though the White House has not confirmed any meeting.

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Iranian officials dismissed Trump’s claims. Parliament Speaker Mohammad Bagher Ghalibaf said “no negotiations” were taking place, accusing Trump of attempting to influence global financial and oil markets. Foreign Ministry spokesman Esmaeil Baqaei acknowledged indirect messages via third countries but denied any direct talks.

The diplomatic confusion comes amid heightened tensions over the strategic Strait of Hormuz, a critical chokepoint for global oil supplies. Trump had earlier issued a deadline for Iran to reopen the route or face severe military action, including potential strikes on energy infrastructure.

Markets reacted sharply to the mixed signals. Oil prices fell significantly, with Brent crude dropping nearly 10%, while global stock markets rebounded on hopes of de-escalation.

Meanwhile, Israeli operations continue across Iran and Lebanon. Netanyahu said he had spoken with Trump and acknowledged that Washington sees a possible diplomatic opening, but stressed that Israel would press ahead with strikes to safeguard its security.

Iran has warned of retaliation, including targeting regional infrastructure and limiting maritime traffic, raising fears of a broader energy crisis. The International Energy Agency has cautioned that prolonged disruption could trigger a shock exceeding past global oil crises.

Trump said there were already “major points of agreement,” including U.S. demands that Iran abandon nuclear ambitions and surrender enriched uranium stockpiles. However, he also warned that failure to reach a deal within days could result in renewed military escalation.

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