The US president says "there is a good chance that something could happen", as Iran denies direct talks are taking place.

US President Donald Trump has said "there are very friendly negotiations going on" about the conflict with Iran, after the warring sides did not exchange strikes for a third straight day. He expressed optimism for an end to the war on Monday, telling reporters aboard Air Force One: "I think there's a good chance that something could happen." However, he warned that Washington would "go back to doing what we were doing" before the pause in fighting if the latest negotiations failed. Trump said he had decided to pause US strikes on Iran on Friday because the countries mediating between them had asked him to give the talks another chance. The pause follows nearly two weeks of daily US strikes and tit-for-tat attacks, effectively unravelling the ceasefire struck in June. The US military said at the time that its strikes were aimed to "degrade Iran's ability to threaten commercial shipping in the Strait of Hormuz" - a global route for transporting oil. The price of oil on Monday fell by more than 9% to $87.59 a barrel at one point on hopes the conflict could be de-escalated. Aboard the presidential plane, Trump also dismissed media reports that after five months of fighting, US ammunition stockpiles were now running low.