Trump Signals Iran War De-escalation After Qatar Mediation Meeting as Oil Crashes and Hegseth Faces Impeachment

President Donald Trump declared fresh US strikes on Iran "highly unlikely" and cited "positive momentum" toward ending the conflict after a closed-door, 45-minute meeting at the White House with Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani on Monday. Trump told Reuters after the session that Qatar and Saudi Arabia both prefer a peaceful resolution, while reaffirming the US remains "locked and loaded" if conditions change. He later posted on Truth Social that all parties agree Iran cannot have a nuclear weapon, calling that position "non-negotiable."

At the center of Monday's diplomacy was a reported $8 billion proposal, cited by Israel Hayom, under which Iran would reopen the Strait of Hormuz and halt attacks on Gulf shipping in exchange for the US releasing frozen Iranian funds and lifting its naval blockade. Iran also reportedly dropped an earlier demand to control the strait and collect transit fees from passing vessels. Vice President JD Vance is said to be pushing for an agreement over objections from senior administration officials, while Secretary of State Marco Rubio called some Iranian preconditions "outrageous and ridiculous" and said a breakthrough was not imminent. Iran's Foreign Ministry spokesman Esmaeil Baghaei defended a proposal to restart talks within two days, shortened from an earlier seven-day offer, but a senior Iranian security official later insisted Iran's policy had not changed and that no negotiations would begin without concrete US action on seven conditions.

Separately, Al Arabiya reported late Monday, citing unnamed sources, that a Qatari-Pakistani proposal had revived serious nuclear talks, with Washington agreeing for the first time to allow Iran to enrich uranium on its own soil to 3.67%, a limit Tehran has accepted. The sources said arrangements were also being made to discuss the return of IAEA inspectors, and that the US would unfreeze between $6 billion and $9 billion in Iranian assets, with the naval blockade lifted immediately upon agreement. Neither the US administration nor Iran confirmed those details, and a senior Qatari official told Al Jazeera that reports circulating online about deal specifics were "categorically false." Iraq's prime minister also relayed proposals to Tehran aimed at ending the war after phone talks with Trump, and had visited Tehran on Friday, according to Iranian state media.

Oil markets reacted sharply to the diplomatic signals. WTI crude settled at $86.85 a barrel, down $3.98 or 4.38%, posting a 2.25-month low, while Brent fell $5.75, or 5.85%, to $92.57 a barrel. RBOB gasoline hit an 8-month low. Post-settlement trade pushed oil below $85 briefly. Since Election Day, ICE Brent front-month has declined roughly 9.5% from $103.60.

On Capitol Hill, Republican Representative Thomas Massie introduced eight articles of impeachment against Defense Secretary Pete Hegseth on Monday, alleging he initiated the Iran war without congressional authorization and disregarded congressional efforts to withdraw US forces. A House vote was expected as early as Wednesday. Hegseth, who announced a rare Pentagon press conference for Tuesday morning, his first in more than six months, said he was "not worried" and called the effort politically motivated. Trump continued to back him. Markets interpreted Massie's move as a signal that pressure to end the Iran conflict and reopen the Strait of Hormuz was intensifying, sending oil briefly below $85.

Broad equity markets staged a sharp recovery, with the S&P 500 rising 2.35%, its best session since April, the Nasdaq 100 gaining 3.4%, and the Dow Jones Industrial Average climbing roughly 1,104 points, or 2.2%. The Philadelphia Semiconductor Index surged 7.5%. Nvidia was the notable exception, falling approximately 5% and entering bear market territory after its board launched an independent probe into CEO Jensen Huang's admitted affair with Alice Huang, a Singapore-based Megaspeed executive identified by US authorities as a suspected Chinese intelligence operative. Congress summoned Huang to testify, and prediction markets priced a 44% chance he departs before 2028, though Nvidia said he would remain CEO without interruption. Trump said he spoke with Huang, who told him he had "no idea" the woman was a spy, and that Huang "will be in good shape." Nvidia has lost roughly $940 billion in market value over the past two weeks. AMD surged 13.4% to $509.01, its best day in the AI chip rebound, as investors rotated away from Nvidia.