Oil prices 'dropping like a rock' as Iran seeks deal, Trump claims amid fresh US strikes

The US military carried out limited strikes on Iran's Qeshm Island on Monday, targeting Iranian forces using surface-to-air missiles against American assets, according to US media reports citing officials.

Iranian state television reported explosions on Qeshm Island, which lies about 14 miles from the Iranian port city of Bandar Abbas. The island is strategically important for Tehran's control over shipping through the Strait of Hormuz.

An official said the strikes targeted Iranian forces using surface-to-air missiles against US assets, reported CNN.

Another official said the American attack was in response to Iran firing at a US aircraft, according to the report.

The strikes did not appear to signal a major combat operation or a return to full-scale hostilities.

The Wall Street Journal, which first reported the operation, said similar strikes had been carried out previously in secret.

The latest action also came despite President Donald Trump earlier indicating that the US would not launch fresh strikes against Iran before Tuesday's midterm elections.

However, Trump on Monday suggested that diplomatic efforts with Tehran were continuing and that an agreement remained possible.

"Could happen," he wrote on his Truth Social platform, referring to the possibility of a deal with Iran.

In an interview aired on Fox News on Monday night, Trump played down the prospect of an ongoing war between the two countries.

"We're not fighting a war. Everyone says 'you're at war!' Well, when was the last time we fired anything? This isn't a war — it's a very soft war," the US president said.

“There’s no war raging. It could happen if they don’t make a deal, but they want to make a deal very badly and there’s a very good chance we make a deal,” he added.

Vice President JD Vance also said Washington and Tehran had made progress towards finding a way to end the conflict.

"The Iranians are always a little unpredictable, and as the president always says, he retains kinetic options, he retains non-kinetic options. But we've certainly made some progress. We'll see if we can make some more," Vance told reporters.

He said he had spoken to Trump about the conflict and that both felt "pretty good" about the prospects of reaching an agreement.

The conflict has emerged as a political vulnerability for Republicans ahead of the midterm elections as the unpopular war is pushing up US gasoline prices and adding pressure on the broader economy.

Trump, however, claimed that oil prices were falling sharply on expectations that a settlement with Iran could be reached.

"Oil Prices are DROPPING LIKE A ROCK, down almost $10 a Barrel, A RECORD, because people feel that there will not be a War with Iran. Iran wants a settlement, as soon as possible. It could happen!" he posted on Truth Social.