Trump Extends Iran Ceasefire, But Hormuz Blockade Remains
US President Donald Trump said he would extend the ceasefire with Iran, after planned diplomatic talks between the two countries were canceled. Trump asserted that the US would refrain from new attacks, but maintained the blockade of the Strait of Hormuz, a vital route for global oil shipments.
In a social media post on Tuesday (April 21), Trump stated that he ordered the US military to continue the blockade and remain on alert, and to extend the ceasefire until Iran's proposals are presented and the discussions are "resolved, one way or another." Vice President JD Vance was previously scheduled to travel to Pakistan to continue negotiations, but Tehran's representatives declined to attend, citing unreasonable US demands. Trump blamed the breakdown in negotiations on Iran's leadership structure, which he called "seriously divided."
This statement changed market expectations ahead of the ceasefire's expiration on Wednesday, when Trump had previously threatened to resume bombings if a deal was not reached. He added that the decision to halt attacks was made at the request of Pakistani leaders. With the Hormuz blockade remaining in place, the risk of energy disruptions could potentially persist longer, leading the market to reassess risk premiums on oil, energy inflation, and safe-haven positions.
Going forward, the market will monitor whether Iran actually submits a new proposal, any signals regarding the schedule for further discussions, and how the Hormuz blockade is being implemented on the ground and how it is affecting the smooth flow of shipping. (Arl)*
Source: Newsmaker.id
