TEHRAN — US President Donald Trump on Monday voiced optimism at the prospects for a negotiated peace deal with Iran, as the two sides held their fire for a third consecutive day.

Fighting between the longtime foes has been paused since Friday after 13 nights of renewed US strikes on the Islamic republic sparked by a breakdown in diplomacy over Iran’s blockade of the Strait of Hormuz.

But the US leader expressed hope that renewed diplomacy could bring an end to the war that began in late February with a wave of US-Israeli strikes, rattling both the region and the global economy.

Tehran had earlier denied that there were any talks with the US to end the conflict.

“Mediators may convey messages from the American side to us regarding current developments in the region. But at present, we are not engaged in any negotiations with the United States,” said Iranian foreign ministry spokesman Esmaeil Baqaei.

But Trump insisted during a speech in Michigan that “right now, they’re talking to us about making a deal”.

Aboard Air Force One, the US president had earlier said that if the new efforts failed, “we go back to doing what we were doing” before the pause in fighting.

On that subject, he dismissed concerns that US ammunition stockpiles were running low nearly five months after the war began.

“We have a lot of ammunition. We have a lot of the mid-level stuff too, more than we could ever use no matter what,” he said.