U.S.-Iran war appears to pause as Trump gives "diplomacy a chance"

A de-escalation in the U.S.-Iran conflict appears to be underway, with President Trump signaling a willingness to pursue diplomatic avenues. Following three nights of relative calm, Iran acknowledged ongoing discussions with Oman aimed at establishing "mechanisms regarding maritime traffic" in the critical Strait of Hormuz.

U.S. Ambassador to the United Nations Mike Waltz described the pause in hostilities as an effort to "give diplomacy some space," while noting that additional U.S. military assets are being deployed to the region. Despite the apparent lull, Iran maintains its control over the Strait of Hormuz, with state media reporting warning shots fired at six ships attempting to use a U.S.-designated route. This development comes 150 days into the ongoing conflict.

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giving diplomacy some space

Global energy and stock markets responded with relief to the halt in fighting and the focus on diplomacy. World shares saw gains, and oil prices dropped significantly. Brent crude fell 6.8% to $85.49 per barrel, and U.S. benchmark crude decreased by 7% to $83.06. Analysts noted that the easing geopolitical tension loosened the pressure on equities, currencies, and bonds.

European markets also showed positive movement, with Germany's DAX, France's CAC 40, and Britain's FTSE 100 all posting gains. U.S. stock futures for the S&P 500 and Dow Jones Industrial Average were also up. Meanwhile, Iran's foreign ministry reiterated on Monday that no direct negotiations with the U.S. are currently taking place, emphasizing that discussions have been exclusively with Oman.

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The discussions we have had over the past few days have been exclusively with Oman.