Iran and the United States maintained a pause in hostilities on Sunday, offering temporary relief to Gulf shipping and global energy markets as Washington signalled that President Donald Trump was allowing diplomatic efforts more time.
Tehran said it had suspended retaliatory action against US allies in the Middle East, while US Ambassador to the United Nations Mike Waltz said American forces remained “locked and loaded” but that Trump was prepared to give negotiations “a little bit of room”.
The easing of tensions was quickly reflected in oil markets, with crude prices falling sharply in early Asian trading on Monday as investors reacted to the absence of fresh attacks.
Around 30 minutes after trading began, international benchmark Brent crude had fallen 5.89 percent to $91.08 a barrel after briefly dropping below $90. West Texas Intermediate, the US benchmark, was down 5.73 percent at $84.19.
The pause followed nearly two weeks of sustained US military action against Iran. Before Friday, American forces had carried out strikes for 13 consecutive nights, marking the most significant escalation since an April ceasefire in a conflict now approaching five months.
No US bombing was reported on either Friday or Saturday night.
“These attacks continued until two nights ago, but over the past two nights the Americans have stopped their attacks,” Iran’s army spokesman Mohammad Akraminia said.
“Since… our strategy has essentially been retaliatory, we have also halted our retaliatory operations.”
The confrontation around the Strait of Hormuz had disrupted diplomatic efforts between Washington and Tehran before expanding well beyond the strategically important waterway. US military bases, commercial shipping and Gulf states allied with Washington have all been drawn into the conflict.
Iranian media reports, which had not been independently confirmed, said an oil tanker was damaged by a sea mine on Sunday.
The break in fighting has renewed expectations that diplomatic contacts could resume, although US media reports have suggested constraints on supplies of Patriot interceptors and other defensive munitions may also have influenced the pause.
Waltz rejected suggestions that American military resources were running short during a separate appearance on NBC News’ “Meet the Press”.
“I want to be crystal clear. The US military — and I’ve verified this every which way — has everything that it needs to conduct this campaign as effectively as it needs to be,” he insisted.
Israeli Prime Minister Benjamin Netanyahu is expected to meet Trump at the White House on Tuesday, where Iran’s nuclear programme is likely to be a central issue. Netanyahu is expected to press Washington to maintain pressure on Tehran.
Iran says its nuclear activities are intended solely for civilian purposes, while the United States and its allies accuse Tehran of seeking the capability to develop a nuclear weapon.
Speaking separately to Fox News, Netanyahu said he supported Trump’s efforts to bring Iran’s nuclear programme to an end.
“If he can do so without returning to intense military fighting, that’s fine. Why not? But one way or the other, they have to end their nuclear programme, and with a deal or without a deal, that has to come to an end,” he said.
The New York Times reported that plans for a further expansion of the US military campaign had been put aside partly because of tightening munitions supplies, citing two people briefed on the matter.
The newspaper also said Trump must weigh the possibility of a broader Middle East conflict, deteriorating relations with exposed Gulf partners and further disruption to the global economy.
Trump said on Friday that he had yet to decide whether the United States would return to a full-scale military campaign.
“We’re talking to them right now. I think they’re getting more and more serious,” he told journalists.
The conflict, which Trump had previously suggested could be resolved within four or five weeks, is now approaching its fifth month and has become an increasingly significant political issue ahead of November’s US midterm elections.
Despite the regional uncertainty, daily life continued largely as normal in Tehran on Sunday. An AFP journalist reported heavy traffic during the morning commute, while shops and restaurants remained open despite a heatwave affecting the Iranian capital.
Tensions have meanwhile extended to another part of the region, with Iran-backed Houthi rebels in Yemen announcing on Sunday that they had shot down a Saudi drone over the country’s northwest.
The claim came a day after the group said it had attacked oil facilities in Saudi Arabia, including Saudi Aramco sites in Jizan and Yanbu. The Houthis said those strikes followed Saudi attacks against Houthi targets on Friday.
