President Trump announced on Monday that the US military would postpone strikes on Iranian power plants and energy infrastructure for five days following 'productive' talks between Washington and Tehran.
Trump wrote on Truth Social that the US and Iran had 'very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East.'
However, Iranian and Arab officials expressed skepticism about the chances of success for Trump's diplomatic push, saying it appeared to be an attempt to dampen oil prices.
The US and Iran are at odds over the Strait of Hormuz, a crucial thoroughfare for the Gulf's energy exports, with Iran having all but shut the strait by attacking ships that try to transit through.
Arab mediators have proposed putting the strategic waterway under the control of a neutral, regional committee to allow all ships to pass.
The escalating conflict is delivering a sharper blow to global oil markets than the combined impact of the twin oil shocks of the 1970s, according to the International Energy Agency.
