IRAN - US President Donald Trump expressed optimism about a negotiated peace deal with Iran on Monday, as both sides observed a third consecutive day without fighting.

The pause follows 13 nights of renewed US strikes on Iran, triggered by a breakdown in diplomacy over Tehran's blockade of the Strait of Hormuz. The conflict began in late February with US-Israeli strikes.
Speaking aboard Air Force One, Trump said: "I think there is a good chance that something could happen". However, Iranian foreign ministry spokesman Esmaeil Baqaei denied any direct negotiations, stating: "At present, we are not engaged in any negotiations with the United States". He acknowledged that mediators may convey messages from the American side. Trump insisted during a speech in Michigan that "right now, they're talking to us about making a deal", warning that if diplomacy fails, "we go back to doing what we were doing". He also dismissed concerns about dwindling US ammunition stockpiles. Despite the lull, Saudi Arabia came under attack on Monday. Its defense ministry intercepted several drones fired by Iran-linked groups in Iraq targeting oil facilities. Riyadh called on Baghdad to prevent such attacks. Pakistan, mediating the conflict, condemned the strikes. Yemen's Houthi rebels also claimed drone attacks on Saudi oil infrastructure. The Israeli military intercepted two drones near the Jordanian border. Global stock markets rallied and oil prices tumbled, with Brent crude dropping six percent to around $86 a barrel, offering respite for Gulf shipping. Control of the Strait of Hormuz remains a major hurdle. Iran's Revolutionary Guards have been stopping vessels, including six that reportedly sailed outside Iran's designated route. Iran has held talks with Oman on safe passage mechanisms, but a proposed service fee hike has angered Washington. Baqaei said the US was not involved in those discussions, accusing Washington of behaving "like a mafia gang that adheres to no rules or laws". (Bssnews)