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Trump Says US Negotiating War Deal, as Iran Denies Talks
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March 23, 2026
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7:55Now PlayingIran's denial of talks with US negotiators are likely the Iranian government not wanting to 'project any sign of weakness' to their public, says Blomberg's Onur Ant.
Speaking in Memphis, President Trump said that there's a 'very good chance' of ending up with a deal, while Iran's government solidly denied any contact was taking place.
Donald Trump’s decision to back down from his threat to destroy Iran’s power infrastructure came after US allies and Gulf countries privately warned the president of the dangers of following through with his threat, according to people familiar with the matter.
The US president said Monday he was giving Iran a five-day reprieve from his threatened action, pointing to new talks with Tehran he believed could broker a deal that would resolve the conflict.
But Trump’s decision came after some allies cautioned that the war was quickly becoming a disaster. Regional partners told the US that permanent damage to Iranian infrastructure would almost inevitably result in a failed state after the conflict ended, according to the people, who described private conversations on the condition of anonymity.
Pulling back also dovetailed with another interest of the president’s: calming markets rattled by his threats and the ongoing conflict. Trump’s decision, which was announced shortly before US trading began, was designed in part to address those concerns, according to the people, and immediately spurred a sharp fall in Brent crude and a rebound in the S&P 500 and US Treasuries.
“Trump needed some way to climb down from a threat that would surely have started a new round of escalation, this time crossing a new threshold by targeting civilian energy infrastructure, which would likely constitute a war crime,” said Dana Stroul, former Deputy Assistant Secretary of Defense for the Middle East. “It is surely no coincidence that the announcement of a five-day pause and talks came right before markets opened in the United States on Monday morning.”
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