Rashomon Confirmed! Trump: US-Iran Talks "Productive" Iran: There Was No Dialogue Whatsoever

Sources reveal that Donald Trump has decided to abandon the threat to destroy Iran’s power infrastructure, after U.S. allies and Gulf countries privately warned Trump that carrying out such a threat would pose significant risks.

On Monday, the U.S. president announced a five-day delay in the planned strike, while stating that new talks with Tehran have begun, which he believes could lead to an agreement and de-escalate the conflict.

However, Trump’s decision came after some allies warned that the war was rapidly turning into a disaster. Sources, speaking on condition of anonymity, revealed that regional partners informed the U.S. that permanently damaging Iran’s infrastructure would almost certainly result in Iran becoming a failed state after the conflict ends.

This pause also aligns with another consideration for the president: calming the markets, which have been volatile due to his threats and ongoing tensions. The sources said this decision was announced shortly before the U.S. stock market opened, partly to ease market concerns, and immediately led to a sharp drop in Brent crude oil prices, with the S&P 500 and U.S. Treasuries rebounding.

“Trump needs to find a way out, or his threats will inevitably trigger a new escalation—targeting civilian energy facilities and crossing a new red line, which could constitute war crimes,” said former Deputy Assistant Secretary of Defense for Middle East affairs, Dana Stroul. “Announcing a five-day ceasefire and initiating dialogue right before the U.S. stock market opens on Monday is no coincidence.”

On Monday, Trump, en route to Tennessee, said that Iranian representatives had proactively contacted him to open negotiations, eager to reach an agreement after his threats to strike energy facilities.

“We’ve been negotiating for a long time, and this time they are serious, thanks to our military’s excellent performance,” Trump said.

He revealed that negotiations between an unnamed Iranian official, his son-in-law Jared Kushner, and adviser Steve Wittekoff began on Saturday and continued through Sunday. According to Trump, Tehran has agreed to hand over nuclear materials and will not restart its nuclear program.

Both sides are expected to continue phone talks on Monday. When asked who would control the key Strait of Hormuz under an agreement, Trump said, “Maybe me and the ayatollah—whoever that ayatollah is.”

“We’ll see how it goes; if progress is made, we can resolve this,” Trump said. “Otherwise, we’ll continue to bomb as much as we want.”

Other countries have also confirmed communication with the U.S. following Trump’s threats. UK Prime Minister Rishi Sunak said the UK government is aware of the U.S.-Iran dialogue.

“I welcome reports of U.S.-Iran talks, and I want to make it clear to the committee that the UK is aware that this is ongoing,” Sunak said Monday.

According to the Financial Times, Pakistan Army Chief Asim Munir spoke with Trump on Sunday, while Prime Minister Muhammad Shabaz Sharif held talks with Iranian President Ebrahim Raisi on Monday.

However, Iran’s Foreign Ministry denied any dialogue with the U.S., and Iran’s Parliament Speaker Mohammad Bagher Ghalibaf posted on social media Monday that President Trump’s statements are “fake news used to manipulate financial and oil markets.”

Diplomatic sources familiar with negotiations believe that Trump’s decision to pause strikes on energy facilities was clearly aimed at controlling oil prices, which Trump also acknowledged on Monday.

“Once an agreement is reached, oil prices will plummet like a boulder,” Trump said. “I think they’ve already started to fall today. So, we have a good chance of reaching an agreement.”

This mixed motivation has sparked skepticism in Washington and Wall Street about the prospects for peace. Trump’s history of retreating from extreme threats, Iran’s delaying tactics in nuclear negotiations, and recent U.S. efforts to mask new military actions with talks with Iran all lead diplomats and traders to doubt whether an actual deal can be achieved this time.

“Trump is good at playing both sides; we can’t rule out a 48-hour final ultimatum that might serve as a cover for recent developments that could change the situation,” said Clearview Energy Partners in an analyst report.

More concerning is Iran’s immediate denial of any dialogue, while claiming victory.

Iran’s semi-official Fars News Agency quoted anonymous Iranian sources saying, “He (Trump) retreated after hearing that our goal is all power plants in West Asia.” After this report, crude oil prices recovered about half of their initial decline, and some traders questioned the authenticity of Trump’s statements.

Trump insists there has been direct communication, but many U.S. allies remain cautious and are taking a wait-and-see approach. Given Trump’s repeated backtracking over the past three weeks, allies remain skeptical of his latest statements.

Trump acknowledged that the dialogue is not with Ayatollah Ali Khamenei—the latter appointed as Supreme Leader after his father, Ali Khamenei, was killed in an airstrike. Trump said the U.S. has not directly received messages from the new leader and is unsure if he is still alive, but intelligence suggests that Wittekoff and Kushner are negotiating with Iran’s true power centers.

However, this ceasefire still carries risks: if negotiations fail, it could validate Iran’s strategy.

“It might lead Tehran to believe that threatening regional energy facilities can force the U.S. to back down,” said Jonathan Panikov, deputy national intelligence officer for Near East affairs at the National Intelligence Council. “In Iran’s view, it’s not just a win, but such actions can also enhance its deterrence.”

Meanwhile, Trump has not indicated whether the five-day ceasefire will include a halt to strikes on Iranian military targets. An Israeli official said Israel does not expect the war to end immediately and plans to continue operations but will avoid targeting energy facilities.

Two officials revealed that Israel was informed in advance of Trump’s social media posts, and within an hour of the announcement, the Israeli military announced strikes on central Tehran. It remains unclear whether this decision signals the start of ending the war. An IDF spokesperson said the war has not paused and fighting continues.

Trump himself confirmed he has communicated and negotiated with Israel, predicting that Israel will ultimately support the deal.

“I think Israel will be very pleased with our results,” Trump said. “We just spoke with Israel. I think they’ll be very happy. If this works out, it will bring peace to Israel—a long-lasting, secure peace.”

Over the past two weeks, Middle Eastern countries like Turkey, Saudi Arabia, and Oman have been behind-the-scenes engaging with Iran to try to curb the war and, ideally, push Iran and the U.S. toward a ceasefire.

“This is very beneficial for other Middle Eastern countries, including Saudi Arabia, the UAE, Qatar, especially Kuwait and Bahrain,” Trump said of his efforts.

A senior diplomat in the region said that in the days before Trump’s announcement, the most active behind-the-scenes talks with Iran were led by Turkey and Oman; another diplomat said information was also relayed through Riyadh, New Delhi, and Cairo. It remains unclear how these discussions influenced Trump’s decision.

Meanwhile, several Gulf officials, eager to avoid involvement in the war, have grown more hardline after weeks of Tehran’s bombings. Sources say Saudi Arabia has warned the U.S. that if its power and water plants are attacked by Iran, it will retaliate against Iran.

The UAE has been one of the clearest in its stance, with officials stating they will defend themselves against Iranian aggression. A senior adviser to the UAE president said Iran’s actions have brought the UAE closer to Israel and the U.S.

Trump’s decision highlights his strategy of dispersing efforts in the war. Over the past three days, he has dispatched thousands of Marines to the region to discuss possible ground operations; hinted that the war is “winding down”; proposed that other countries reopen the Strait; and then issued a 48-hour final ultimatum.