U.S. President Donald Trump has extended the ceasefire with Iran, saying the move came after a request from Pakistan and was intended to give Tehran more time to submit what he called a “unified proposal” for renewed negotiations.
The decision delays the expiry of the previous two-week truce and temporarily lowers fears of an immediate return to open conflict. However, Trump also made clear that the U.S. blockade of Iranian ports will remain in place, signalling that economic pressure on Tehran is continuing even during the ceasefire period.
In a social media statement, Trump argued that keeping pressure on Iran is essential to securing a lasting agreement. He also linked the issue to the Strait of Hormuz, warning that Iran risks losing hundreds of millions of dollars in daily revenue if the waterway remains disrupted.
The Strait of Hormuz remains central to the crisis because roughly one-fifth of the world’s oil and natural gas shipments move through the narrow channel. Any threat to shipping there has immediate consequences for global fuel markets, inflation and economic confidence worldwide.
The latest extension followed intense diplomatic activity in Islamabad, where authorities imposed major security measures and tightened access across the capital. Pakistan has been positioning itself as a mediator between Washington and Tehran, with Prime Minister Shehbaz Sharif publicly welcoming the ceasefire extension.
Meanwhile, Iran had not formally endorsed the extension in its early response, leaving uncertainty over whether talks will resume quickly or whether the pause will simply delay another round of confrontation.
The White House also confirmed that Vice President JD Vance would not travel to Pakistan as previously expected until clearer progress is made.
On another regional front, new discussions are also planned between Israel and Lebanon in Washington later this week, as diplomatic efforts widen beyond the U.S.-Iran standoff.
Despite the fragile calm, markets remain highly sensitive. Oil prices, shipping routes and investor confidence continue to hinge on whether diplomacy can produce a workable deal before tensions flare again.