President Donald Trump has warned that the latest round of negotiations with Iran represents the "last chance" for Tehran to sign a deal to end the five-month conflict, even as Iran continues to deny any direct talks are taking place.
What Happened: Trump's Oval Office Statement
Speaking to reporters late Monday, Trump said negotiations were "going on right now" at the request of Iran, Saudi Arabia, the United Arab Emirates, Qatar and other Gulf allies. "This is a last chance for them to sign a good document," Trump declared.
The president's comments came after he called off what he described as "massive attacks" on Iran over the weekend, a pattern that has repeated multiple times since the conflict began in February 2026.
Iran's Response: Denying Negotiations
Iranian Foreign Ministry spokesman Esmail Baghaei directly contradicted Trump's claims. "No negotiations with the United States are taking place and no meetings are scheduled," Baghaei told reporters Monday.
Baghaei added that all Iranian negotiators were currently in the country, except for Foreign Minister Abbas Araqchi, who was on a religious pilgrimage in Iraq. The only discussions underway, he said, were talks with Oman over management of the Strait of Hormuz.
Why This Matters for Americans
The ongoing conflict has already displaced 2.6 billion barrels of crude from global supplies, pushing oil prices higher and driving up gasoline costs. Average US gas prices currently sit around $4.10 per gallon, up more than 30% since military action intensified.
The Strait of Hormuz, through which roughly 20% of global oil flows, remains partially blockaded. The International Maritime Organisation warned in June that seafarers had been killed, injured or detained, and by July nearly 6,000 seafarers remained stranded aboard vessels unable to safely leave the Gulf.
The Pattern: Threats, Standoffs, and Retreats
Monday's events fit a pattern that has emerged since Trump launched "Operation Epic Fury" alongside Israel more than five months ago. On several occasions, Trump has threatened major military action only to later cite diplomatic contacts as a reason for stepping back.
Trump has yet to achieve the objectives he set out at the start of the war: dismantling Iran's nuclear program, curbing its ability to attack regional rivals, and creating conditions for Iranians to overthrow their clerical rulers.
Oil Markets React to Conflicting Signals
Oil prices initially dropped sharply on Monday as markets reacted to news that Trump had called off strikes. Brent crude fell about 7% to around $83.77 per barrel while the Dow Jones Industrial Average closed at a record high.
However, prices ticked back up early Tuesday as traders grew less confident in a diplomatic breakthrough. West Texas Intermediate futures rose 2.09% to $82.02 per barrel while Brent climbed 2.8% to $86.11.
What Happens Next
The Trump administration faces a critical decision point. With midterm elections approaching in November, rising gas prices represent a growing political liability. The president has pressured oil companies to reduce retail prices, publicly attacking ExxonMobil and Chevron for making "too much money."
Meanwhile, a cargo vessel was reportedly struck by an "unknown projectile" near the Strait of Hormuz on Monday, highlighting the ongoing risks to commercial shipping in the region. The incident reinforced the dangerous nature of the standoff.