Trump backs down on strikes on Iran's power network

President Donald Trump backed down on targeting Iran's power network on Monday, saying the US and Iran have held constructive talks and that he would postpone any strikes on power plants and energy infrastructure.

Trump's move followed a threat by Iran to attack Israel's power plants and those supplying US bases across the Gulf region if the US targets Iran's power network.

Conversations with Iran will continue throughout the week, Trump said in a social media post. However, Iran's Fars news agency, citing a source, said there are no direct or indirect communications with the United States.

The White House did not respond to questions about the content of the talks, who participated or where they were held.

The United States and Iran "have had, over the last two days, very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East," Trump wrote in a post on Truth Social.

"I have instructed the Department of War to postpone any and all military strikes against Iranian power plants and energy infrastructure for a five-day period, subject to the success of the ongoing meetings and discussions."

The dollar plunged and stocks surged following Trump's post.

On Saturday, Trump warned that Iranian power plants would be destroyed if Tehran failed to "fully open" the Strait of Hormuz to all shipping within 48 hours. Trump set a deadline of around 7:44 pm EDT (2344 GMT) on Monday.

Iranian attacks have effectively closed the Strait, which carries a fifth of global oil and liquefied natural gas.

More than 2,000 people have been killed in the war the US and Israel launched on February 28, which has upended markets, driven up fuel costs, fuelled global inflation fears and convulsed the postwar Western alliance.