By Humeyra Pamuk and Susan Heavey
WASHINGTON, March 23 (Reuters) – U.S. President Donald Trump on Monday said there have been talks between the United States and Iran over the past day in which the two sides had “major points of agreement,” adding that a deal could be done soon to settle the war.
Trump said his Middle East envoy Steve Witkoff and close aide and son-in-law Jared Kushner talked to the Iranians on Sunday and that discussions would continue on Monday.
“We have had very, very strong talks. We’ll see where they lead. We have points, major points of agreement, I would say, almost all points of agreement… we’ve had very strong talks, Mr. Witkoff and Mr. Kushner had them,” Trump said.
“All I’m saying is, we are in the throes of a real possibility of making a deal,” he told reporters before departing Florida for Memphis.
He declined to say who the United States was speaking with in Iran but said it was not Iran’s Supreme Leader Ayatollah Mojtaba Khamenei. Trump said Iran “had some leaders left.”
“We’re dealing with the man who I believe is the most respected and the leader,” Trump said.
Iran’s Fars news agency, citing a source, said there are no direct or indirect communications with the United States.
STRIKES ON POWER PLANTS POSTPONED
Earlier on Monday, Trump backed down on a threat to target Iran’s power network, saying he would postpone any strikes on power plants and energy infrastructure.
The reaction from markets was swift and marked. Brent crude oil futures fell sharply, the dollar fell against other major currencies, stock markets rallied and government borrowing costs fell back.
Trump’s statement on Monday came after Iran threatened to attack Israel’s power plants and those supplying U.S. bases across the Gulf region if the U.S. targets Iran’s power network.
On Saturday, Trump warned that Iranian power plants would be destroyed if Tehran failed to “fully open” the Strait of Hormuz to all shipping within 48 hours. Trump set a deadline of around 7:44 p.m. EDT (2344 GMT) on Monday.
Iranian attacks have effectively closed the Strait, which carries a fifth of global oil and liquefied natural gas.
The Strait of Hormuz will be “opened very soon” if the talks work, Trump said, adding that it would be “jointly controlled” although he did not give a clear answer on by who exactly.
“Maybe me. Maybe me. Me and the Ayatollah, whoever the Ayatollah, whoever the next Ayatollah…” Trump said.
More than 2,000 people have been killed in the war the U.S. and Israel launched on February 28, which has upended markets, driven up fuel costs, accelerated global inflation fears and convulsed the Western defense alliance.
However, the threat of strikes on Gulf electricity grids raised fears of mass disruption to desalination for drinking water, and further rattled oil markets.
(Reporting by Humeyra Pamuk, Steve Holland, Doina Chiacu, Susan Heavey and Gram Slattery; Editing by Toby Chopra, Michelle Nichols and Bill Berkrot)
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