US President Donald Trump on Monday indicated that the Strait of Hormuz could reopen soon if ongoing talks with Iran yield results. Speaking to reporters, he suggested that control of the crucial waterway could even be shared, though he offered no clear framework.

"The Strait of Hormuz will be "opened very soon" if the talks work," Trump said, adding it could be "jointly controlled". He went on to remark, "Maybe me. Maybe me. Me and the Ayatollah, whoever the Ayatollah, whoever the next Ayatollah ..."

Pause in strikes

Trump also announced a temporary halt in US strikes on Iranian energy infrastructure, calling it a "five day period" following what he described as "productive conversations". However, the lack of clarity over who was involved in the talks and what had been agreed led to confusion, while Iran denied any engagement.

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Iran's Fars news agency, citing a source, said there are no direct or indirect communications with the United States.

The announcement had an immediate impact on global markets. Brent crude oil prices dropped sharply, the US dollar weakened against major currencies, stock markets saw gains, and government borrowing costs eased.

Rising tensions in the Gulf

The statement comes after a week of heightened military exchanges in the region. Israel on March 18 struck Iran's South Pars gas field, prompting retaliation from Iran, which targeted Qatar's Ras Laffan LNG facility, located across the same field.

Iran later warned that it could strike Israel's power plants and those supplying US bases in the Gulf if its own energy network was targeted.

The Strait of Hormuz, a key route for nearly 20 per cent of the world's oil and liquefied natural gas, has remained largely shut since the February 28 US-Israeli strikes on Iran that killed the then Iranian Supreme Leader Ayatollah Ali Khamenei.

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'Very serious form of regime change'

The ongoing conflict has led to more than 2,000 deaths and disrupted global energy markets, raising concerns over fuel prices and inflation.

Trump also hinted at broader political outcomes, stating, "And there'll also be a very serious form of regime change. There's automatically a regime change," while adding that discussions over the weekend showed signs of easing tensions.

Referring to those involved in the talks, he said, "But we're dealing with some people that I find to be very reasonable, very solid. The people within know who they are, they're very respected, and maybe one of them will be exactly what we're looking for."