Donald Trump said a diplomatic end to the US-Israel war with Iran was possible, delaying previously announced strikes on Tehran’s energy infrastructure—a move that helped stabilize markets.
The shift, coming nearly a month into the fighting, coincided with mounting pressure on the White House—rising oil prices and weak domestic support for the conflict are forcing a search for an exit.
On Monday, stocks and bonds recovered earlier losses following Trump’s remarks, while oil prices declined. The Stoxx Europe 600 index rose 0.6%, rebounding after dropping more than 2% at the start of trading. Brent crude fell from about $113 a barrel to $96.
However, uncertainty persists—both over Washington’s strategy and Tehran’s willingness to negotiate. While stepping back from immediate strikes on energy facilities, Trump simultaneously issued a new ultimatum, giving Iran’s leadership five days to reach a deal.
“Iran has one more chance to end its threats against the United States and our allies, and we hope it takes it,” Trump said. “Either way, America and the entire world will soon be much safer.”
In Tehran, such signals were met with skepticism. Parliamentary speaker Mohammad Bagher Ghalibaf wrote on X that “no negotiations with the United States have taken place.”
Ghalibaf, who has emerged as one of the central figures in Iran’s leadership following the deaths of several officials in US and Israeli strikes, added that “the Iranian people demand the complete and humiliating punishment of the aggressors. All officials firmly support their leader and the people until this goal is achieved.”
Throughout the war, Trump has alternated between signaling an imminent halt to strikes on Iran and threatening to expand military involvement—including the possible deployment of US ground forces.
Earlier, he said his special envoy Steve Witkoff and Jared Kushner had maintained contacts with senior Iranian officials in an effort to reach an agreement, effectively reviving negotiations that were halted after the launch of the US-Israeli operation on February 28.
“If everything goes well, we will settle this… Otherwise, we will just keep bombing as much as we want,” Trump told reporters.
A deal could, in theory, lead to the reopening of the Strait of Hormuz—a critical supply route whose closure has destabilized global energy markets. According to Trump, the US could jointly control the strait with Iran, though such an arrangement is unlikely to be acceptable to Tehran.
Despite statements about a possible deal in the coming days, the United States continues to expand its military presence in the region, deploying additional forces, including thousands of Marines.
About 2,200 Marines from the 31st Marine Expeditionary Unit are already en route from Japan aboard the amphibious assault ship USS Tripoli, which is optimized for air operations. It is expected to arrive in the Middle East by the end of the week.
The Pentagon has also ordered the deployment of the Boxer Amphibious Ready Group—three ships led by the USS Boxer that departed from California. On board are about 4,500 personnel, including another 2,200 Marines from the 11th Marine Expeditionary Unit. The transit will take three to four weeks.
There are already about 50,000 US troops in the region—once the new units arrive, that number will approach 60,000.