In a stunning late-day reversal, President Donald Trump announced Thursday that he has called off a fresh round of U.S. military strikes against Iran, declaring that peace talks have reached the “highest level of Iranian leadership” and received approval.

Just hours earlier, Trump had warned that American forces would hit Iran “very hard tonight” and eventually seize control of its key oil infrastructure, including Kharg Island. The abrupt change came as the conflict appeared to be spiraling back toward full-scale war, testing an already fragile ceasefire.

Trump posted on Truth Social that discussions had been approved “in both concept and great detail” by all parties involved — though notably, his list did not include Iran itself or Lebanon, where Israeli strikes continue.

Despite the optimistic tone, Iranian state media quickly pushed back, with Fars reporting that Tehran has not approved any memorandum of understanding with the U.S. The U.S. naval blockade of Iranian ports will remain in place until any potential deal is finalized.

Stock markets soared and oil prices dropped sharply following Trump’s announcement, reflecting Wall Street’s willingness to bet on de-escalation — a pattern that has repeated throughout the conflict.

This latest twist underscores the chaotic and unpredictable nature of the U.S.-Iran standoff. For months, Trump has repeatedly teased that a deal was imminent, only for negotiations to stall. Now, with the war entering its third month and both sides exchanging blows, the president appears to be using the threat of escalated strikes as leverage while claiming progress behind the scenes.

Whether this represents genuine diplomatic movement or another round of high-stakes posturing remains unclear. Iran’s swift denial suggests deep skepticism on their end, while the continued blockade shows the U.S. is keeping maximum pressure on the table.

As the world watches to see if a real breakthrough is possible — or if this is simply the latest chapter in a long cycle of threats and stalled talks — one thing is certain: the situation in the Middle East remains extremely volatile, with enormous consequences for global energy markets and regional stability.