Washington: US President Donald Trump has said that a new round of negotiations with Iran is set to begin on Monday after he called off what he described as a planned "massive" military strike against the country. Speaking aboard Air Force One, Trump said negotiations would begin "tomorrow afternoon" and claimed progress had been made towards an agreement.

Trump said Iran, along with key US allies in the Middle East including Saudi Arabia, Qatar and the United Arab Emirates, had urged Washington to hold off on military action. He claimed there was progress towards agreements on both the Strait of Hormuz and Iran's nuclear programme, but did not reveal where the talks would take place or who would attend.

Iran has not officially responded to Trump's latest remarks. However, Iran's semi-official Mehr news agency rejected Trump's claim that Tehran had requested a halt to military action, calling it "nothing but a new lie." Iranian Foreign Minister Abbas Araghchi meanwhile said negotiations through Oman regarding the Strait of Hormuz were progressing towards finalisation.

Following Trump's announcement, global oil prices fell in early Asian trading, with Brent crude and US benchmark crude both dropping by more than 4%. Markets reacted positively to the prospect of renewed diplomacy, as concerns over disruptions to shipping through the Strait of Hormuz—through which around one-fifth of the world's oil and LNG supplies pass—eased.