Iran and the U.S. continued to hold back hostilities Monday, easing tensions for Gulf shipping and oil markets as President Trump's U.N. envoy said talks remain possible.

Tehran said it had halted retaliatory attacks against Washington's allies in the Middle East, and U.S. ambassador to the United Nations Mike Waltz told "Fox News Sunday" that, while forces remained "locked and loaded," Trump would give negotiations "a little bit of room."

Fighting over the Hormuz Strait derailed diplomatic efforts between Washington and Tehran, triggering a U.S. air campaign and Iranian reprisals that expanded the conflict to shipping lanes, Gulf allies and military bases across the region.

Before Friday, the U.S. military had carried out strikes on Iran for 13 consecutive nights, in the largest rekindling of the almost five-month war since an April ceasefire. But Friday, Saturday and Sunday nights passed without bombing.

"Since ... our strategy has essentially been retaliatory, we have also halted our retaliatory operations," said Iran's army spokesperson Mohammad Akraminia.