US President Donald Trump announced that he was negotiating with Iran and cited this as the reason for postponing a five-day ultimatum regarding the closure of the Strait of Hormuz. Tehran denies any dialogue with Washington.
The White House hopes to reach an agreement on ending the conflict with Mohammad Bagher Ghalibaf, Speaker of the Iranian parliament.
According to sources familiar with the situation, Trump’s decision to drop his threat to destroy Iran’s energy infrastructure was made after U.S. allies and Gulf states privately warned the president of the dangers associated with carrying out such a threat. On March 23, the president announced he was giving Iran a five-day reprieve from threatening actions, pointing to new negotiations with Tehran that could resolve the conflict.
However, Trump’s decision came after some allies warned that the war was fast turning into a disaster. Anonymous sources described private conversations where regional partners told Washington that irreversible damage to Iranian infrastructure would almost inevitably lead to the collapse of Iran’s state following the end of the conflict.
The administration believes Iran would be willing to negotiate if the United States makes it clear it is ready for them, but allies fear this may not be easy. Negotiations between an unnamed Iranian official, Trump’s son-in-law Jared Kushner and adviser Steve Witkoff began on March 21 and continued until March 22. According to the president, Tehran agreed to transfer nuclear materials to the United States and not resume its nuclear program.
The Trump administration is reportedly considering Ghalibaf as a potential partner and even a future leader of Iran. At 64, Ghalibaf has repeatedly threatened the United States and its allies with retaliatory measures. Some White House officials view him as a promising candidate capable of leading Iran and negotiating on the next stage of the war.
The White House is not ready to commit to any specific candidate, hoping to test several options for someone willing to make a deal. “He is one of the most promising candidates,” an administration official said, warning that a final decision had not yet been made.
The administration’s interest in finding a negotiating partner indicates a desire to escape the crisis Iran has quickly plunged into—shaking global markets, sharply undermining oil prices and rekindling inflation concerns. This also hints at the critical question: when U.S. forces and Israel destroyed Tehran’s leadership, who will be next?
Trump announced on March 24 that U.S. and Iran had held “very good and productive” talks on a “full and comprehensive settlement of hostilities in the Middle East.” He said this led him to postpone the plan to strike Iranian energy infrastructure for five days. His statement caused oil prices to drop sharply.
However, Ghalibaf denied any negotiations with Washington, stating on X: “No negotiations have been held with the United States, and fake news is being used to manipulate financial and oil markets and get out of the quagmire in which the United States and Israel find themselves.” The Islamic Revolutionary Guard Corps (IRGC) announced new attacks on American targets and called Trump’s statements “psychological operations” that had “exhausted” Tehran’s resolve.
Global markets rebounded after Trump extended the ultimatum demanding the Strait of Hormuz remain open. However, market uncertainty grew as conflicting statements from both sides caused U.S. Treasury bond yields to rise, the dollar to regain lost ground, and Brent crude futures to increase by 4.2% to $104.21 per barrel.
Iranian officials have publicly denied conducting negotiations on ending the war, while American officials stated contacts are at a very early stage and not substantive. Trump used the beginning of even an early dialogue as a way out of the situation when he issued a four-eight-hour ultimatum. Iran vowed not to capitulate, with the deadline set by Trump expiring on March 23.
Despite rejecting one military option, U.S. and Israeli officials continue striking Iran and sending new military forces to the region. Officials report Trump is still considering more aggressive operations, including capturing Kharq Island—the main center of Iranian oil exports—and transferring ground troops to Iran to secure highly enriched uranium.
Four Iranian officials stated that messages transmitted through intermediaries were attempts to de-escalate the conflict and prevent further escalation. They claimed Iranian Foreign Minister Abbas Araghchi told Witkoff that Iran was not interested in a temporary ceasefire but wanted sustainable peace with guarantees that U.S. forces and Israel would cease attacks. The Iranians also pushed Washington to ease economic sanctions, a topic previously discussed in pre-war talks.
