The U.S. and a group of regional mediators are discussing the possibility of holding high-level peace talks with Iran as soon as Thursday, but are still waiting for a response from Tehran, two sources with knowledge of the discussions told U.S. news portal Axios.

Long before he became Iran's parliament speaker, Mohammad Bagher Qalibaf went on a charm offensive for almost two decades, portraying himself as a hard-liner the West could do business with in the Islamic Republic.

"I would like the West to change its attitude to Iran and trust Iran, and rest assured that there's an attitude in Iran to advance issues through dialogue," he told The Times newspaper of London in 2008.

Iran and Israel traded strikes on Tuesday, as the Middle East war showed no sign of de-escalation despite U.S. President Donald Trump signaling "very good talks" to end the three-week conflict.

The war, sparked by U.S.-Israel attacks on Iran that killed its supreme leader, has upended global energy markets, roiled the world economy, and spiraled throughout the region -- even dragging in safe-haven Gulf nations.

Israeli Prime Minister Benjamin Netanyahu said Monday that he spoke with Donald Trump, saying that the U.S. president believed U.S.-Israeli military gains in Iran could be converted into a negotiated agreement that protects Israel's interests.

"President Trump believes there is a chance to leverage the tremendous achievements of the IDF (Israeli army) and the U.S. military in order to realize the war's objectives in an agreement -- an agreement that will safeguard our vital interests," Netanyahu said in a video statement.

U.S. President Donald Trump told reporters on Monday that his envoys held talks with a senior official in the Iranian leadership and claimed the parties are in agreement on many points.

Trump walked back his threat to strike Iran's power plants on Monday, citing productive negotiations.

President Donald Trump said Monday that there are "major points of agreement" in U.S.-Iran talks which he said must result in Tehran giving up its nuclear ambitions and enriched uranium stockpile.

Iranian media said on Monday there were no negotiations between Tehran and Washington after US President Donald Trump announced talks towards ending the war.

"There are no talks between Tehran and Washington," said Mehr news agency citing Iran's foreign ministry, adding that Trump's statements were part of a push "to reduce energy prices".

President Donald Trump has extended his deadline for Iran to reopen the Strait of Hormuz, saying the U.S. will hold off on power plant strikes for five days.

Trump made the announcement on his Truth Social site Monday, hours ahead of a deadline later in the day.

Iran's military threatened on Sunday to completely shut down the strategic Strait of Hormuz if U.S. President Donald Trump acts on threats to target the country's power plants.

U.S. President Donald Trump on Saturday gave Iran 48 hours to reopen the Strait of Hormuz to shipping or face the destruction of its energy infrastructure, as Tehran launched its most destructive attack yet on Israel.