US President Donald Trump has signaled a possible shift toward diplomacy with Iran, just days after issuing strong threats, raising cautious hopes of de-escalation while also fueling uncertainty.
Speaking on Monday, Trump expressed confidence that a deal could be reached, suggesting that discussions may be progressing despite the recent escalation in tensions.
This marks a notable change from his earlier stance, when he warned of potential strikes on Iran’s energy infrastructure if key demands were not met. The shift reportedly followed concerns raised by Gulf allies, who warned that targeting such infrastructure could trigger wider regional instability.
While the US has indicated that indirect communication channels are active, Iran has denied that any negotiations are taking place. However, reports suggest that countries such as Pakistan, Oman, Turkey, and Egypt are acting as intermediaries, passing messages between both sides.
At the center of the discussions are key demands from the US, including limits on Iran’s nuclear and missile programmes, which analysts say may be difficult for Tehran to accept.
The situation remains complex, with ongoing military movements and conflicting signals from both sides. Analysts note that while diplomatic efforts are underway, a breakthrough may not be imminent.
Markets have reacted quickly to the shift in tone, with oil prices falling and stock markets rising, reflecting cautious optimism about a possible easing of tensions.
