Iran holds Hormuz stability talks with Saudi Arabia, Oman

• Iran confirmed it held discussions with Saudi and Omani representatives regarding the Strait of Hormuz, aiming to "establish stability in the region and eliminate the insecurity imposed on the Strait of Hormuz."
• The pause in U.S.-Iran hostilities appeared to hold on Tuesday after two weeks of strikes.
• President Donald Trump hailed "good talks," but Iran denied that direct negotiations are taking place.

Discussions over the future of the Strait of Hormuz continued on Tuesday, as Iran's Foreign Ministry said it had held talks with Saudi and Omani counterparts on the strategically vital maritime passage.

Iranian Foreign Minister Seyyed Abbas Araqchi held separate phone calls with Saudi Arabia's Faisal bin Farhan and Oman's Badr Al-Busaidi regarding "the latest bilateral and regional developments," according to a Telegram statement translated by Google.

The ministry said the calls "emphasized the need to strengthen cooperation and advance joint diplomatic efforts to establish stability in the region and eliminate the insecurity imposed on the Strait of Hormuz caused by the aggressive actions of the United States."

The development came as a pause in U.S.-Iran hostilities appeared to hold, following a temporary halt to two weeks of strikes between the adversaries on Friday.

Markets have broadly responded positively to the pause, with stocks rallying and oil prices falling on Monday, as sentiment was buoyed by the potential for a lasting peace agreement.

However, other Middle East actors have continued military action in recent days. Saudi Arabia reported overnight that it had intercepted a "number of drones" allegedly launched by Iran-backed militias in Iraq targeting the kingdom's oil facilities.

The Iraqi militias have not claimed responsibility for the attempted strikes, while Yemen's Houthis have said they attacked Saudi oil facilities, according to Reuters — leaving the culprits unclear at the time of writing. The Jordanian army also said it had downed a drone in its airspace overnight.

U.S. President Donald Trump hailed "good talks" with Iran late on Monday. The Iranian foreign ministry continued to deny that any direct negotiations with the U.S. were taking place, but suggested messages are being exchanged via intermediaries.

Nevertheless, Trump told reporters on Air Force One that U.S. strikes will resume if talks fail to deliver progress.

Regarding talks with Iran, the president separately told a campaign rally in Michigan: "You can't bribe them. You've got to beat them, and we'll beat the hell out of them. But we'll see how it turns out. Right now, there are very friendly negotiations going on."

Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.