Trump warns Iran talks are ‘last chance' to end war — oil prices rise as Tehran denies negotiations

President Donald Trump has warned that the latest round of negotiations with Iran is the "last chance" to bring an end to the five-month conflict. Trump told reporters in the Oval Office late on Monday that talks are "going on right now," at the request of Iran, Saudi Arabia, the United Arab Emirates, Qatar and others.

However, Tehran continues to deny that any direct negotiations with the U.S. are taking place — or that there are plans to hold them in the future. Iran's President Masoud Pezeshkian said on Tuesday that Tehran would continue to defend its borders but insisted it does not seek an expansion of the conflict, according to state media reports.

"This is a last chance for them to sign a good document," Trump said. In a Truth Social post earlier on Monday, Trump described Iran's leaders as "unbelievably duplicitous" and accused them of lying about peace talks that are underway, whether Iran wants to admit it or not.

Oil prices ticked higher again on Tuesday amid a lack of clarity over diplomatic efforts. Iranian foreign ministry spokesperson Esmail Baghaei had again poured cold water on the notion of direct negotiations with the United States. Baghaei told a press conference on Monday that there is no immediate plan for negotiations with the U.S., reiterating that Tehran is currently only engaged in talks with Oman regarding the Strait of Hormuz.

It came after the president decided to call off "massive attacks" on Iran to allow for talks he said were starting on Monday. The decision lifted market sentiment, with oil prices slumping in response. Oil prices rebounded slightly early on Tuesday as traders became less confident that a diplomatic solution to the conflict, which has upended energy markets, is in sight.

West Texas Intermediate futures were up 1.29% at $81.38 per barrel as of 1:35 a.m. ET. Brent crude, the international benchmark, was up 1.73% at $85.23 a barrel.