Story
Trump Denies Sanctions Relief Offer to Iran as Oil Prices Climb on Supply Fears
Summary
U.S. President Donald Trump has refuted reports of offering sanctions relief to Iran, creating uncertainty around diplomatic efforts to end a seven-month conflict that continues to elevate geopolitical risk and push crude oil prices higher.
U.S. President Donald Trump on Monday denied media reports that his administration offered to ease sanctions on Iran in exchange for concessions on its nuclear program. The statement introduces fresh uncertainty into diplomatic channels as Tehran simultaneously signals a readiness to resume negotiations.
Conflicting Diplomatic Signals
In a post on his Truth Social platform, Trump stated, "This is untrue. I offered them NOTHING." His comments directly contradict reports from Axios and CNN, which, citing unidentified U.S. officials, suggested Washington was prepared to offer sanctions relief and the release of frozen funds if Iran took "concrete progress" on its nuclear program.
Meanwhile, Iranian President Masoud Pezeshkian told CBS's "Face the Nation" that Tehran is ready for talks but would not accept "bullying or coercion." Pezeshkian reiterated Iran's position that it does not seek to develop nuclear weapons. The conflicting messages from Washington and Tehran's conditional willingness to talk highlight the complex diplomatic landscape as both sides engage with mediators.
Market Impact and Regional Tensions
The ongoing conflict, which began in February, has severely disrupted global energy flows and heightened supply-side risks in the Middle East. These geopolitical tensions were reflected in commodity markets Tuesday, with oil prices rising for a second straight session.
Key market movements include:
Ad- Brent crude futures rose $1.49, or 1.4%, to $106.77 a barrel.
- U.S. West Texas Intermediate (WTI) crude climbed $1.34, or 1.5%, to $93.94 a barrel.
The gains are underpinned by persistent concerns over the conflict's expansion. Iran's Houthi allies in Yemen have reportedly made advances that threaten Saudi oil exports through the Red Sea, adding another layer of risk to regional energy infrastructure.
Strait of Hormuz in Focus
A key point of contention remains the strategic Strait of Hormuz. Iranian Foreign Minister Abbas Araqchi stated Sunday that "only a negotiated solution" could end the deadlock and that any reopening of the vital waterway is contingent on Iran's conditions being met. According to Araqchi, a proposed deal included a seven-day countdown to reopen the strait.
President Trump rejected this plan on Saturday, telling reporters that Iran's push for a deal was driven by desperation. Iranian officials have said they are awaiting a formal U.S. response via mediators before making a final decision.
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