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The denial adds another layer of uncertainty to a crude market that has been trading almost entirely on Iran diplomacy headlines. Market reports noted that the original relief reports coincided with softer oil, a slightly weaker US dollar and gains in Treasuries, equities and gold, so a flat denial risks unwinding some of that repricing. The counterweight is that price reactions to Trump’s social media posts on the war have been shrinking, according to Axios reporting in August, which may limit the move. For oil, the direction of travel still depends on whether mediated talks make progress on reopening the Strait of Hormuz, and on whether conflicting official messaging keeps a risk premium in the market.
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Trump’s flat denial leaves markets with conflicting signals on Iran sanctions relief just as mediators prepare to bring both sides back to the table.
Summary:
- Trump posted on Truth Social that an Axios story saying he offered Iran sanctions relief and frozen funds was untrue, saying he offered “nothing,” and demanded that Axios withdraw it immediately.
- Axios, citing US officials, had reported that Trump is willing to provide sanctions relief and release frozen Iranian funds in return for concrete Iranian steps on the nuclear program. CNN carried similar remarks from a US official.
- Axios also quoted a US official calling indirect talks positive and constructive, while stressing there will be no deal unless the nuclear issues are addressed and that gaps remain on timing and sequencing.
- Qatari mediators are expected to meet US officials on Monday or Tuesday, and Trump told Axios on Sunday that he expects more talks with Iran this week.
- The reports followed Trump’s rejection on Saturday of an Iranian proposal to reopen the Strait of Hormuz, which US officials said required immediate sanctions relief and the release of frozen assets.
- Market reports linked the initial relief headlines to weaker oil and a slightly softer dollar, with Treasuries, stocks and gold higher.
US President Donald Trump has denied an Axios report that he offered Iran sanctions relief and frozen funds, calling the story a hoax and demanding that the outlet withdraw it. In a post on Truth Social on Monday, Trump said he offered Iran nothing and accused Axios of publishing the report out of hostility towards him. He also said the outlet’s story, like most others, was a hoax.
Axios had reported, citing US officials, that Trump is willing to give Iran sanctions relief and release frozen Iranian funds in return for concrete Iranian steps on its nuclear program. CNN carried similar remarks from a US official, who said any relief would be part of a final deal and depend on Tehran showing concrete progress on the nuclear issue. Axios also quoted a US official describing the indirect talks as positive and constructive, and saying Iran had signalled flexibility on nuclear matters, while stressing that there would be no deal unless those issues are addressed. The official said the sides remain apart on the timing of commitments and on who takes which steps first.
The same official told Axios that traffic through the Strait of Hormuz continues to rise and that the blockade and sanctions are degrading Iran’s position, adding that the White House is skeptical of Iran’s promises. CNN’s source accused Iran of violating a previous memorandum of understanding by firing on commercial vessels.
The reports followed Trump’s rejection on Saturday of an Iranian proposal to reopen the Strait of Hormuz, which he called unacceptable. US ambassador to the United Nations Mike Waltz said Trump turned it down because it required the immediate lifting of sanctions and the release of frozen assets. Trump told Axios on Sunday that he expects further talks with Iran this week, saying Tehran wants a deal but not the one he wants.
Qatari mediators were expected to hold separate talks with Iran and the US on Monday or Tuesday, with the discussions focused on an amended version of a seven-day proposal Iran presented last week. Market reports said the original relief headlines coincided with lower oil prices, a slightly weaker US dollar and gains in Treasuries, equities and gold.
Attention now turns to the mediated talks and to whether the White House provides any further clarification on its position, as well as to how oil prices react if the diplomatic track advances or stalls.
This article was written by Eamonn Sheridan at investinglive.com.
