Trump sees 'good chance' for Iran deal, warns strikes could resume

US President Donald Trump voiced optimism Monday that diplomacy with Iran could produce a deal to end the months-long war, but warned that Washington would resume military strikes if negotiations failed.

Iran and the United States have held their fire for three consecutive days after 13 nights of renewed US attacks, offering a narrow opening for diplomacy following the collapse of an earlier ceasefire agreement aimed at reopening the Strait of Hormuz.

Trump said Iranian leaders had requested a meeting and argued that "the only reason they want to meet is because US's been hitting them very hard." Tehran, however, earlier denied that direct negotiations were under way, saying mediators were merely relaying messages from Washington.