Iran decided to cancel live-fire exercises in the Strait of Hormuz, while the US withdrew a guided missile destroyer from the Israeli port of Eilat. Both sides are reportedly preparing for a new round of negotiations this week.

Officials from Turkey, Egypt, and Qatar are arranging a meeting between US Special Envoy Steve Witkoff and Iranian officials this week. The meeting is likely to take place in Ankara, Turkey.

Regional media and analysts believe that the risk of armed conflict has been temporarily averted. But the US continues to maintain strong military pressure on Iran as it is deploying a powerful naval force in the Middle East, ready to intervene militarily in Iran on the orders of President Donald Trump.

Iranian Supreme Leader Ali Khamenei said on Sunday Iran does not initiate conflict but will strongly retaliate against any provocation and aggression directed at Iran.

"We are not the instigators, we are not going to be unfair to anyone, we don’t plan to attack any country. But if anyone shows greed and wants to attack or harass, the Iranian nation will deal a heavy blow to them,” he said.