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President Donald Trump said that the US will not be attacking Iran's energy sites for five days after both countries held "very good and productive conversations".
This came after Iran's National Defence Council said that any attempt to attack the Iranian coast or islands will cause "all communication lines in the Persian Gulf to be mined".
However, local media quoted Iranian sources, sharing that no direct contact with Trump has been made, claiming that the president "backed down" after being warned that Iran would target power plants across the Gulf and in Israel.
On Saturday night, Trump gave Iran a 48-hour window to reopen the Strait of Hormuz, or the US would "obliterate" Iranian power plants.
Since the war began, Iran has blocked the Strait of Hormuz, one of the world's busiest oil shipping channels, causing global fuel prices to soar.
Following Trump's announcement, oil prices saw a drop of around 13 per cent after Trump said he would order the military to postpone any strike against Iranian energy infrastructure.
