US reportedly in talks with Iran over temporary peace deal

Semafor reported that the Trump administration has been engaged in talks for a temporary peace deal. Vice President JD Vance is said to have sent a letter to Tehran aiming to restart negotiations, though Trump played down the effort and described it in terms of humanitarian needs.

This diplomatic push coincides with planning for a possible return to conflict. An administration official told Semafor that US forces could resume combat operations soon after the midterm elections, and that only presidential authorization would be required for the military.

However, there is no unanimous agreement within the administration on whether further strikes are advisable. Many officials are skeptical about escalating hostilities, while Trump is reportedly the most inclined toward military action, albeit with his own reservations.

A diplomatic deal could lower geopolitical risks and energy costs, while a new military escalation might again raise concerns over regional stability and energy supply disruptions.

Crude oil prices fell on the news and risk sentiment improved modestly, but the Semafor report contained no new facts, merely reflecting the current situation.