A fragile ceasefire between the U.S. and Iran entered its third consecutive day Tuesday, though Tehran denied any direct negotiations with Washington to end the five-month conflict.

The pause in hostilities began Friday after 13 nights of U.S. airstrikes targeting Iranian-linked positions, triggered by Iran’s blockade of the Strait of Hormuz—a critical oil shipping route. The standoff has rattled global markets and left regional allies on edge.

Trump Signals Optimism for Diplomatic Breakthrough

President Donald Trump told reporters aboard Air Force One that he sees “a good chance” of a negotiated settlement, despite Iran’s insistence that no talks are underway. “I have a lot of patience… We’ll see what happens,” he said.

In a Michigan speech, Trump went further, claiming Iran was “talking to us about making a deal.” Yet he warned that if diplomacy fails, the U.S. would “go back to doing what we were doing”—a reference to resumed military strikes.

Iranian Foreign Ministry spokesman Esmaeil Baqaei dismissed the notion of direct negotiations. “Mediators may convey messages from the American side to us regarding current developments in the region,” he said. “But at present, we are not engaged in any negotiations with the United States.”

Saudi Arabia Targeted as Ceasefire Holds

Despite the lull, Saudi Arabia’s defense ministry reported intercepting multiple drones on Monday, launched by Iran-backed groups in Iraq. The attacks targeted oil facilities, underscoring the conflict’s persistent volatility.

Trump downplayed concerns over U.S. ammunition supplies, asserting the military has “more than we could ever use no matter what.” The war, which began in late February with joint U.S.-Israeli strikes, has strained resources but not depleted stockpiles, he said.

What Happens Next

Analysts warn the ceasefire remains tenuous, with both sides trading accusations while indirect channels remain open. Observers will watch for further attacks on Gulf energy infrastructure or shifts in Iran’s rhetoric as key indicators of whether diplomacy can advance—or if hostilities will resume.