"We are in very deep talks with Iran. If they don't work out, we will go back to very strong military action," Trump said in an interview with US online news outlet Axios.
Trump told reporters there’s still a chance to reach a deal and Tehran is showing interest in talks after enduring nearly two weeks of heavy US airstrikes.
Iran said it is keeping communication channels open through mediators, but denied asking for direct talks with the US. Iranian Foreign Ministry spokesman Esmail Baghaei said Iran still supports diplomacy.
A senior Iranian official said Tehran will stop its attacks as long as the US continues to pause its airstrikes. Iran also said it remains in control of the Strait of Hormuz, a key shipping route that carries about 20% of the world's oil.
Hopes of renewed talks quickly eased pressure on energy markets. Brent crude fell more than 8% on Monday to less than 89 USD a barrel, after topping 100 USD last week.
