Iran Seeks CIA Talks Through Third Party; Oil Falls First Time Since War Began

Iranian intelligence officials indirectly contacted the U.S. Central Intelligence Agency through a third country the day after the United States and Israel launched attacks on Iran, according to foreign media reports. While formal negotiations have not yet been established, markets interpreted this as a signal that Iran may be open to a ceasefire agreement.

The New York Times reported on the 4th (local time), citing anonymous Middle Eastern and Western officials, that "Iran's surviving leaders had Iranian intelligence operatives indirectly reach out to the CIA to discuss terms for ending the conflict just one day after the attacks began."

However, the NYT noted that "U.S. officials are skeptical in the short term that the Trump administration or Iran is ready to find an exit to end the conflict," adding that "it remains unclear whether Iran is actually open to a deal."

The report continued: "Some Iranian leaders may believe they can inflict enough physical, economic and political pain on the U.S. and Israel to end the attacks." It also noted that "President Trump has also faced growing political pressure from Republican figures unhappy with the operation."

Iran has strongly denied reports of back-channel negotiations with the United States. The Wall Street Journal previously reported that Ali Larijani, secretary of the Supreme National Security Council who holds military and security authority, was attempting to negotiate with the U.S. through Omani mediation shortly after the death of Supreme Leader Ayatollah Ali Khamenei.

In response, Secretary Larijani posted on X (formerly Twitter) on the 2nd, denying the WSJ report and writing: "We will not negotiate with the United States."

Mohammad Mokhber, considered one of Supreme Leader Khamenei's closest aides, also told Iranian state television on the 4th: "Iran has no contact of any form with the United States. There will be no negotiations with the U.S. government."

Iranian Foreign Minister Abbas Araghchi wrote on X the same day: "When complex nuclear negotiations are treated like real estate deals and big lies cover the truth, unrealistic expectations are not met. The result was bombing the negotiation table with a grudge."

President Trump also posted on Truth Social the previous day: "Their air defense, air force, navy, and leadership are all gone. They want to talk, but I said 'too late.'"

New York stock markets opened higher following the NYT report, reflecting expectations that the Iran war may not drag on longer than anticipated due to a potential agreement. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite showed gains of 0.50% to 1.30% in early trading. U.S. West Texas Intermediate crude for April delivery and Brent crude for May delivery also turned lower during the session for the first time since the Iran airstrikes began.