U.S. President Donald Trump said on Sunday that new negotiations with Iran will begin Monday afternoon, according to Al Jazeera. Trump made the remarks during an interview with reporters on Air Force One, adding that the discussions would take place in the form of a negotiation. He did not specify the location or participants in the talks.

Background of Delayed Military Action

Trump had previously considered a large-scale military strike against Iran but opted to hold off after Saudi Arabia, the United Arab Emirates, and Qatar urged him to reconsider, according to Al Jazeera. The U.S. leader said the Gulf allies believed a deal was possible, particularly regarding the Strait of Hormuz and Iran’s nuclear issue.

Trump also said that Saudi Crown Prince Mohammed bin Salman had advised against the strikes, warning of potential unintended consequences such as mass migration and other “bad things,” according to Al Jazeera. The U.S. president added that he was open to continuing discussions if a deal could be reached.

Regional Diplomatic Efforts

Iran’s Foreign Minister Abbas Araghchi held a second phone call with Saudi Foreign Minister Prince Faisal bin Farhan Al Saud, with Pakistani Army Chief Asim Munir also participating in the conversation, according to Al Jazeera. The officials discussed initiatives aimed at maintaining and strengthening security and stability in West Asia, with Araghchi emphasizing the importance of political solutions and regional cooperation.

Separately, U.S. officials indicated that any potential ceasefire with Iran remains secondary to the Trump administration’s focus on holding Tehran accountable for alleged violations of a memorandum of understanding, its actions in the Strait of Hormuz, and the recent deaths of U.S. soldiers, according to Axios. A U.S. official said that military and economic pressure will continue until Trump decides otherwise.

Economic and Market Reactions

The news of suspended U.S. military action against Iran led to a drop in international oil prices by around 8.7%, according to Nate — Meanwhile, silver prices fell by 1.71% as investors shifted toward higher-risk assets following improved geopolitical sentiment, according to TMGM Trading. The U.S. Dollar also regained strength, contributing to the decline in silver’s value.

Investors are now watching the Federal Reserve’s upcoming monetary policy decision after the Conference Board Consumer Confidence Index dropped slightly in July and private-sector job creation slowed to 15,000 per week, according to TMGM Trading. Despite the improved market sentiment, regional tensions remain elevated due to recent security incidents in Saudi Arabia, Jordan, and Iraq.