Iran Rejects US Peace Talks, Says Washington Won’t Dictate War or Peace

Iran said Monday it is not currently engaged in peace talks with the United States and will not let Washington set the clock on war or peace, undercutting the White House narrative that a diplomatic off-ramp is close. The comments landed as President Trump’s pause in strikes enters its third day, and traders are watching crude for the next move.

What Iran actually said

Iran on Monday said it is not currently engaging in peace talks with the United States and will defend itself for as long as its interests require, after President Donald Trump paused the US bombing campaign following nearly two weeks of strikes.

Foreign ministry spokesperson Esmaeil Baghaei said in a televised press conference that Tehran will never allow the United States to determine the timing of war and peace, and held America responsible for the military aggression against Iran. Baghaei added that what exists at present cannot be called a ceasefire.

Washington’s version doesn’t match Tehran’s

US ambassador to the United Nations Mike Waltz said Sunday the pause in strikes was to allow talks with Iran to develop. Iran’s foreign ministry pushed back the next day.

Mediators may convey messages from the American side regarding current developments in the region, but at present Iran is not engaged in any negotiations with the United States, said Iranian foreign ministry spokesperson Esmaeil Baqaei.

Do you want to see how to make more plays? Do you want to find gains yourself?

Unusual Whales helps you find market opportunities through our market tide, historical options flow, GEX, and much, much more.

Create a free account here to start conquering the market with Unusual Whales.

Trump says Iran is asking to talk

Trump said Iran is eager to talk, claiming they requested a meeting through their surrogates and directly. The president added that good things could happen and noted the markets seemed to enjoy the pause in fighting, pointing to oil dropping big on the day.

Crude reaction and the Hormuz overhang

The price of Brent crude oil fell about 4% by midday Monday to about $81 per barrel. The move reflects the pause in strikes, not any confirmed deal, and the Strait of Hormuz remains the pressure point.

The recent dip in attacks came as Iranian and Omani deputy foreign ministers convened in Tehran to discuss shipping through the Strait of Hormuz. Oman and Iran drew closer to an agreement in principle on the future management of the strait, but remained unable to resolve Tehran’s demand that all ships passing through must pay some type of transit fee or toll to a consortium led by the two countries.

Options market and stocks to watch

Energy and defense names remain the cleanest expressions of the headline risk. Watch for continued volatility across the tape as language shifts between Tehran and Washington. For the latest, see other news.

• USO — watch for follow-through selling if the strike pause holds, and a fast reversal on any renewed escalation.
• XLE — watch the energy sector ETF for beta to Brent as the Hormuz talks develop.
• XOM — watch integrated majors for how much of the war premium unwinds.
• LMT — watch defense primes if munitions stockpile concerns raised by the White House translate into replenishment orders.
• RTX — watch for flow tied to missile and interceptor demand as the conflict remains unresolved.

Want more market intelligence? Create your free Unusual Whales account for options flow, market tide, GEX, and the full toolkit.