DUBAI, United Arab Emirates (AP) — U.S. President Donald Trump on Monday said the U.S. was talking with a “respected” Iranian leader and claimed the Islamic Republic was eager for a deal to end the war. He also extended a deadline for Iran to reopen the crucial Strait of Hormuz or face attacks on its power plants, saying it has an additional five days.

Trump’s turnaround, which held out the possibility of resolving the war now in its fourth week, served to drive down oil prices and jolt stocks. It offered a reprieve after the U.S. and Iran traded threats over the weekend with potentially catastrophic repercussions for civilians across the region.

Trump told reporters that Iran wants “to make a deal,” and claimed U.S. envoy Steve Witkoff and Trump’s son-in-law Jared Kushner had held talks with an Iranian leader Sunday. He did not say who was representing Iran but said the U.S. has not talked to Supreme Leader Ayatollah Mojtaba Khamenei.

Trump said if a deal is reached, the U.S. would move to take Iran’s enriched uranium, which is critical to its disputed nuclear program. Iran has adamantly refused such demands in the past, insisting it has the right to enrich uranium for peaceful purposes.

Iranian state media cited Iranian officials as denying any such talks, and said Trump had backed down “following Iran’s firm warning.” Turkey and Egypt meanwhile said they had spoken to the warring parties, the first sign of coordinated mediation from the regional heavyweights.

The war has already seen several dramatic turning points — the killing of Iran’s supreme leader, the bombing of a key Iranian gas field, and strikes targeting oil and gas facilities and other civilian infrastructure in Gulf Arab nations. The conflict has killed more than 2,000 people, shaken the global economy, sent oil prices surging, and endangered some of the world’s busiest air corridors.

The latest threatened attacks could have cut electricity to millions of people in Iran and around the Gulf, and knocked out desalination plants that provide many desert nations with drinking water. There are also increasing concerns about the consequences of any strikes on nuclear facilities.