Trump Says US-Iran Talks Continue Despite Regional Drone Attacks

President Donald Trump speaks as the United States and Iran continue indirect diplomatic contacts amid ongoing regional security tensions.

Trump Says US-Iran Talks Progress as Regional Drone Attacks Continue

WASHINGTON/DUBAI — July 27, 2026

U.S. President Donald Trump said the United States is holding "good talks" with Iran and believes a diplomatic agreement remains possible, while warning that U.S. military strikes could resume if negotiations fail.

The comments came days after Washington suspended a two-week air campaign against Iran. Although the pause has raised hopes for diplomacy, regional tensions remained high on Monday as several neighboring countries reported drone attacks.

Speaking in Washington, Trump said negotiations were progressing and expressed optimism about reaching a deal. However, he warned that the United States would restart military operations if diplomatic efforts did not produce results. Later, at a campaign rally in Michigan, he repeated that negotiations were continuing but stressed that military action remained an option.

Iran's Foreign Ministry said communication between Tehran and Washington continues through international mediators. However, officials rejected reports that Iran had requested renewed negotiations, calling those claims false. A senior Iranian official also said Iran would suspend its own attacks as long as the U.S. military pause remained in effect.

Despite the diplomatic contacts, security concerns persisted across the region. Saudi Arabia said it intercepted drones targeting petroleum facilities, including sites near Riyadh, and blamed Iran-backed armed groups operating from Iraq. The kingdom said it reserved the right to respond.

In Yemen, the Iran-aligned Houthi movement said it had targeted Saudi Arabia's East-West Pipeline in response to what it described as Saudi drone operations. Meanwhile, Iran's military accused the United States of threatening commercial vessels and oil tankers in Iranian territorial waters and attempting to impose what it called an illegal maritime blockade.

Iran also said it continues to control the Strait of Hormuz, one of the world's most important shipping routes for oil exports. The United States has repeatedly called for unrestricted navigation through the strategic waterway, while Iran maintains that it has authority to supervise maritime transit in the area.

Financial markets reacted positively to the suspension of U.S. airstrikes and signs of possible diplomacy. U.S. crude oil prices fell more than 8%, while Brent crude dropped more than 9% as traders anticipated a lower risk of supply disruption.

According to a U.S. official, President Trump's decision to halt the bombing campaign followed advice from military commanders, who said available military targets had become increasingly limited. The official also said senior military leaders expressed concern about the use of precision-guided munitions during the operation. Trump denied suggestions that the U.S. military was facing ammunition shortages.

Iranian state media reported that six ships attempting to pass through the Strait of Hormuz without permission were turned back on Monday, although the claims have not been independently verified.

The conflict has continued for months, with U.S. and Iranian military actions causing casualties on both sides and increasing instability across the Gulf region. Diplomatic efforts remain focused on resolving disputes over Iran's nuclear program and navigation through the Strait of Hormuz, but significant differences between the two sides remain.