Hopes of a U.S.-Iran Breakthrough Mount. Tehran’s President Said Supreme Leader Gave Govt. ‘Certain Authorities.’

Iranian President Masoud Pezeshkian said on Monday that Supreme Leader Mojtaba Khamenei gave the government "certain authorities" to conduct negotiations with the U.S. as expectations of a breakthrough climb.

Iranian state media reported that Pezeshkian went on to say that Tehran seeks to solve the war with the U.S. without returning to full-fledged hostilities.

Oil prices fell further following the development, with Brent crude, the international benchmark, plunging about 6% and going back below $107 a barrel.

Secretary of State Marco Rubio said during the weekend that President Donald Trump would rather solve the war "diplomatically."

Speaking to press, Rubio said Trump has not made a decision while negotiations continue, but his threats represent "incredible confidence that if we needed to do something militarily, we would have the ability to do it, and we really we have everything we need to be successful." However, he clarified, the administration "would prefer to do it peacefully."

Trump, on his end, said the conflict will end "very soon, one way or the other." "Either they'll make a deal, or we'll just end it," he added.

Negotiations got momentum following a letter from Vice President JD Vance to Iranian leadership late last month.

The letter in question was sent to top Iranian military leader Mohsen Rezaei, who has a direct line to Supreme Leader Mojtaba Khamenei. "The President was enthusiastic about the letter," a U.S. official told Axios.

Another report had noted that Iranian leaders will take a proposal detailing nuclear concessions to the U.S. in exchange for sanctions relief to avoid a return to a full-fledged war to Khamenei.

The same outlet detailed that the proposal, put forward by Qatar and supported by Pakistan, Saudi Arabia, Egypt and Turkey, would see Iran allowing UN inspectors to visit its nuclear sites in exchange for sanctions relief.

One possibility includes returning to an agreement reached with the International Atomic Energy Agency (IAEA), which allowed for the resumption of visits to nuclear sites but was later suspended after the UN Security Council reimposed snapback sanctions a month later.

Iran has been insisting that the U.S. first lift its blockade of the country's ports and release frozen funds. However, Iranian officials said they will take the proposal to the supreme leader for approval in the coming days.

"The idea is that the Iranians will be able to say that they didn't give up the enriched uranium up front, and the U.S. will be able to say that it got some nuclear concessions from Iran," a source briefed on the matter told the outlet.

The person went on to say that the White House will analyze the matter depending on whether Iran accepts it.