President Donald Trump has warned Iran of severe consequences while saying a diplomatic settlement may still be possible.

Diplomatic efforts between the United States and Iran remain active as the conflict continues to affect the Middle East and global energy markets.

During his address to the United Nations on September 22, President Donald Trump defended U.S. policy toward Iran and warned of further action if a peace agreement cannot be reached.

At the same time, Trump said talks involving U.S. representatives and mediators had shown signs of progress.

Reuters reported that Trump said there was significant momentum toward a potential agreement.

The conflicting signals — strong public warnings alongside continued diplomacy — underline the uncertainty surrounding the next phase of the conflict.

The situation is also being closely monitored by oil markets. Falling oil prices on September 23 reflected increased expectations of Gulf supply and hopes for progress in U.S.-Iran negotiations.

Whether the diplomatic track produces an agreement remains uncertain.