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US President Donald Trump speaks to reporters before boarding Air Force One at Palm Beach International Airport in West Palm Beach, Florida. (AFP) Iran denied Monday that it had engaged in negotiations with the United States, after President Donald Trump postponed a threat to bomb Iran's power grid because of what he described as productive talks with unidentified Iranian officials.Trump wrote early in the US morning on his Truth Social platform that the US and Iran had held "very good and productive" conversations about a "complete and total resolution of hostilities in the Middle East".As a result, he said, he was postponing a plan to hit Iran's energy grid for five days. His announcement sent share prices sharply higher and oil prices sharply lower, a sudden reversal to a market swoon caused by his weekend threats and Iran's vows to respond.He later told reporters that his special envoy Steve Witkoff and son-in-law Jared Kushner, who had been negotiating with Iran before the war, had held discussions with a top Iranian official into the evening on Sunday that were to continue Monday."We have had very, very strong talks. We'll see where they lead. We have major points of agreement, I would say, almost all points of agreement," he told reporters before departing Florida for Memphis.In Memphis he said Washington had been negotiating with Iran "for a long time, and this time they mean business," adding: "I think it could very well end up being a good deal for everybody."He did not identify the Iranian official in touch with Witkoff and Kushner, but said: "We're dealing with the man who I believe is the most respected and the leader.""We're dealing with some people that I find to be very reasonable, very solid. The people within know who they are. They're very respected, and maybe one of them will be exactly what we're looking for."Iran's powerful parliament speaker Mohammad Baqer Qalibaf said on X that there had been no such talks with the United States, and ridiculed the suggestion as an attempt to rig financial markets."No negotiations have been held with the US, and fakenews is used to manipulate the financial and oil markets and escape the quagmire in which the US and Israel are trapped," he wrote."Iranian people demand complete and remorseful punishment of the aggressors. All Iranian officials stand firmly behind their supreme leader and people until this goal is achieved."Iran's elite Revolutionary Guards said they were launching fresh attacks on US targets, and described Trump's words as "psychological operations" that were "worn out"."The contradictory behaviour of the US president does not cause us any negligence on the war front or the continuation of the battle with the hostile enemy," the Guards said in a statement.Although there was no immediate confirmation that talks had already taken place as described by Trump, there were indications of outreach, with third countries acting as potential mediators or helping to set up contacts. Iran's foreign ministry described initiatives to reduce tensions, without giving further details.A Pakistani official and a second source said talks on ending the war could be held in Pakistan as soon as this week.The Pakistani official said US Vice President JD Vance, as well as Witkoff and Kushner, were expected to meet Iranian officials in Islamabad. A second Pakistani official said Islamabad was relaying messages between the United States and Iran.An Israeli official and two other sources familiar with the matter said the interlocutor on the Iranian side was Qalibaf, the parliament speaker, who has become increasingly influential.A European official said there had been no direct negotiations between the US and Iran but Egypt, Pakistan and Gulf states were relaying messages.Trump's announcement that he was holding off on his plan to hit Iran's grid abruptly reversed a plunge in global markets, which had shuddered Monday in Asia and Europe and had been on course to open sharply lower in the United States following the weekend threats.Iran had responded to Trump's threats by saying it would hammer the infrastructure of US allies in the Middle East, raising the prospect that an extreme disruption to global energy supplies could last longer than previously expected.The respite sent the Brent crude oil benchmark tumbling around 8% to about $103 a barrel. Iran has effectively closed the key Strait of Hormuz, through which about a fifth of global oil and liquefied natural gas flows. Trump has demanded Iran open the strait, but Tehran says it will not do so until the United States and Israel call off their attacks. Related Story
Vietnam and Russia Monday signed a co-operation agreement on the construction of Vietnam's first nuclear power plant, Russia's Rosatom nuclear agency said Monday.Prime Minister Pham Minh Chinh was visiting energy-rich Russia as Vietnam seeks to shore up its fuel reserves at a time of disruption to energy supplies caused by the war in the Middle East, sparking fears of fuel shortages around the world.Since the US-Israeli war against Iran began in late February, the cost of 95-octane petrol and diesel in Vietnam, a manufacturing hub, has soared by 50% and 70% respectively.The agreement lays out the legal framework for the construction of two reactors with a total output of 2,400MW at Vietnam's proposed Ninh Thuan nuclear power plant, Rostam said.Rosatom head Alexey Likhachev said the agreement would be the 'foundation for a long-term industrial partnership, which will strengthen Vietnam's energy independence and open up new opportunities for economic growth'.No timeline was given for when construction would start or when the plant might come online.Moscow and Hanoi had initially agreed to build the Ninh Thuan 1 atomic power station back in 2010, but later decided to suspend construction.Another agreement between Russia's top liquefied natural gas (LNG) producer Novatek and a Vietnamese buyer was also signed recently, Novatek's CEO Leonid Mikhelson said Monday.'We have been in negotiations with potential buyers for over five years, and have very recently signed a preliminary supply agreement with one of them. We are ready to commence deliveries at the earliest opportunity,' he told state broadcaster Rossiya 24, without naming the customer.Russia and Vietnam have also signed a deal on oil and gas production in both countries, the TASS state news agency reported, citing Russian Prime Minister Mikhail Mishustin, without giving details.
Tugboats move a crude oil tanker to its berth at the oil terminal at the port in Qingdao, in China’s eastern Shandong province Monday. (AFP) China Monday urged all parties involved in the Middle East conflict, particularly the US and Israel, to cease military operations, warning of a "vicious cycle" in a war that analysts say if prolonged, could undermine global growth and weaken demand for Chinese exports."The one who tied the bell must be the one to untie it," said Chinese special envoy to the Middle East Zhai Jun at a briefing after his shuttle-diplomacy trip that included stops in Saudi Arabia, the United Arab Emirates and Kuwait.In a separate briefing, foreign ministry spokesperson Lin Jian cautioned that the use of force would only lead to a "vicious cycle" and that the war should not have been started."Should the hostilities continue to spread and intensify, the entire region will be plunged into chaos," he said."The lessons of the past are not far behind us," the Chinese foreign ministry said Monday in a reply to Reuters seeking comment on the Iraq War anniversary last week."The war 23 years ago brought profound suffering to the Iraqi people and had a serious impact on the Middle East," the statement said.Last Friday marked the 23rd anniversary of the Iraq War, in which US-led forces invaded the country to oust Saddam Hussein, partly on claims that his government possessed weapons of mass destruction. Though the regime fell quickly, Iraq sank into years of chaos and instability, in a war estimated to have killed more than 100,000 people, cost the US trillions of dollars and created a power vacuum that saw the rise of the Islamic State terrorist group."The war 23 years later on Iran has caused severe losses to the Iranian people, and the spillover and spread of the conflict have also affected the entire region," the ministry said.Trump on Saturday imposed a 48-hour deadline on Tehran to reopen the Strait of Hormuz to all shipping, threatening to destroy Iranian power plants otherwise.Iranian attacks have effectively closed the key waterway which carries a fifth of global oil and liquefied natural gas, causing the worst oil crisis since the 1970s.While Beijing did not detail its concerns, a prolonged conflict could weigh on China's export outlook.Emerging markets – key drivers of Chinese export growth – are particularly vulnerable due to limited oil reserves and sensitivity to rising energy costs."Weakening growth in China's emerging market trading partners will likely weigh on Chinese exports to these countries in the coming quarters," Goldman Sachs's Hui Shan said in a report about the near-term risks to China's economy.China is relatively better positioned to absorb higher oil prices with coal accounting for about 60% of its energy mix, ample oil stockpiles and imports via the Strait of Hormuz, representing only around 5% of total energy consumption.Still, rising oil and gas prices could lift inflation and end producer price deflation, according to the chief China economist. The bank has cut its forecast for China's second-quarter growth and raised its inflation outlook for 2026. Asked whether China had pressed Iran to ensure safe passage for Chinese vessels and oil shipments through the strait, foreign ministry spokesperson Lin said Beijing remains in communication with all parties and is committed to easing tensions. Related Story