The US and Iran are engaged in a high-stakes game of diplomacy, with President Donald Trump announcing a pause in strikes on Iranian energy infrastructure for five days. The move sent oil prices plummeting, but Iran's denial of any talks with the US has had a negative impact, causing prices to rise.
Trump's announcement came after he said that the US and Iran had been holding 'productive talks' over the past two days, with 'major points of agreement'. However, Iran's foreign minister and Parliament Speaker dismissed the talks as an attempt to manipulate financial markets.
Despite the speculations over the US-Iran talks, Iran's Islamic Revolutionary Guard Corps (IRGC) said they were launching fresh strikes on US targets, describing Trump's words as 'psychological operations' that were 'worn out'. The IRGC targeted several Israeli cities, including Dimona and Tel Aviv, and a number of US bases.
The situation remains fluid, with a European official reportedly saying that while there had been no direct negotiations, Egypt, Pakistan and Gulf states were relaying messages. A Pakistani official and another source told Reuters that direct talks to end the war could be held in Islamabad as early as this week.
