Trump says he is extending Iran ceasefire; peace talks are on hold

President Donald Trump said he will extend the ceasefire with Iran, after talks between the US and Iran did not begin as planned on Tuesday.

It is still unclear if Tehran and Israel will agree to the extension.

However, Trump confirmed the US Navy will continue its blockade of Iran’s sea trade, a move Tehran considers an act of war.

Meanwhile, the planned second visit by US Vice President JD Vance to Pakistan for talks with Iran was canceled at the last minute after Tehran did not respond to US proposals, the New York Times reported.

The trip is currently on standby, the publication said., and could proceed “at a moment’s notice” if Iran signals willingness to engage with US proposals.

Markets react to Trump’s comments
US stock futures rose, and the dollar weakened. However, oil prices traded above $100 a barrel on Wednesday after reports of gunfire attacks on three ships in the Strait of Hormuz.

Gold prices climbed, with spot gold rising 1% to $4,759.63 per ounce.

The war, which started on February 28, has killed over 5,000 civilians and shaken global markets.

Oil supply remains under pressure as the Strait stays blocked. The International Energy Agency called this the largest supply disruption on record, surpassing the 1970s oil crisis and the impact of the Russian invasion of Ukraine.

Additionally, for the first time, Chinese President Xi Jinping urged the restoration of normal shipping through the Strait of Hormuz after Iran’s closure.