Trump says strikes will be paused

US President Donald Trump said on Monday that any military strikes against Iranian energy sites will be held off for five days after the two sides held "productive conversations" over the weekend, a comment that instantly pushed up stock futures and drove down oil prices.

In his message on his Truth Social platform, written entirely in capital letters, he said he had instructed the defense department to postpone the strikes pending the outcome of the talks.

The statement is a walk back to his previous ultimatum that the US would strike Iranian power plants if Tehran did not reopen the Strait of Hormuz by Monday night.

After he made the comment, the US stock futures jumped, with contracts tied to the Dow Jones Industrial Average and the S&P 500 up by 2.5 percent, reversing declines from earlier morning trading. Brent crude futures fell more than 10 percent to below $100 a barrel, although their fall narrowed later.

However, Iran's Fars News Agency said after Trump's post that there was no direct communication with the US or through intermediaries. Quoting an Iranian source, Fars said Trump has withdrawn the threat of attacking Iranian power plants after hearing of Iran's retaliation by targeting all power generation facilities across the West Asia region.

Iran's Tasnim News Agency, citing an Iranian official, said Trump backed down from attacking critical Iranian infrastructure amid financial market pressure, warning that Tehran would continue to defend itself until it achieves deterrence.

Iranian Foreign Minister Seyed Abbas Araghchi said on Sunday that the strait remained open, but ships were hesitating to use the vital waterway because insurers feared the "war of choice" initiated by the United States and Israel, as the conflict entered the fourth week.

The Iranian foreign ministry issued a statement on the strait, published by Mehr News Agency on Monday. It stated that Iran, as a responsible state committed to the principles of the UN Charter and international law, has always respected the principle of freedom of navigation, as well as maritime safety and security.

Omani Foreign Minister Sayyid Badr bin Hamad bin Hamood Albusaidi came to Iran's defense, in a post on X on Monday, saying that whatever one's view of Iran, this "war is not of their making" and that the situation was "already causing widespread economic problems".

Previously, Trump had issued a 48-hour ultimatum, raising concerns about the upcoming consequences of the conflict.

Energy crisis warned

Fatih Birol, executive director of the International Energy Agency, told the National Press Club of Australia, that the energy crisis is "now two oil crises and one gas crash put all together", likening it to the 1970s energy crisis and the impact of the Russia-Ukraine conflict. Birol said the global economy "is facing a major, major threat today" and hoped it would be resolved immediately as "no country will be immune to the effects".

In the latest development, several explosions were reported in Iran early on Monday.

According to Tasnim News Agency, the US struck residential neighborhoods in Khorramabad, western Iran, during the early hours, killing nine civilians.

Israel has also been accused of expanding its ground invasion in southern Lebanon, after the Israeli Air Force blew up the Qasmiyeh Bridge over the Litani River on Sunday. Israel accused Hezbollah of using it to move operatives and weapons into the country's south.

Lebanese President Joseph Aoun called Israel's latest attack on his country a "collective punishment" of Lebanese civilians, a dangerous escalation, and a precursor to a ground invasion.

Agencies contributed to this story.