Trump Extends Iran Ceasefire Indefinitely While Maintaining Strait of Hormuz Blockade

The ongoing blockade has driven economic fallout, with oil prices fluctuating. Crude oil gained amid uncertainty but later pared gains, falling below $90 per barrel, though prices remained up over 3% for the day. Global jet fuel markets have been severely disrupted, leading airlines to cut flights due to surging fuel costs.

France announced a freeze on some spending to offset 6 billion euros in costs from the war, including support for businesses, households, increased defense spending, and higher borrowing costs. China called for reopening the Strait of Hormuz, with President Xi Jinping stating it serves common interests, according to state-run Xinhua news agency.

Iran's military warned of powerful attacks on predetermined targets in response to U.S. threats, and issued a warning for people to leave the United Arab Emirates, Qatar, Bahrain, Saudi Arabia, and Kuwait. The blockade has also threatened pharmaceutical supply chains, putting certain medications at risk.

The ceasefire, initially set for two weeks, was extended without a new deadline, raising concerns among Trump's advisers that it could allow Iran to prolong negotiations. Key sticking points include Iran's uranium enrichment, its stockpile of enriched uranium, and sanctions relief.

Trump emphasized avoiding a deal resembling the Obama-era Joint Comprehensive Plan of Action, which he withdrew from in 2018. Iran's April 2026 crude oil exports remained elevated despite the conflict, according to tanker tracking data. Asia-Pacific stocks opened mostly lower following the announcement, with the ASX 200 down 0.5% and Nikkei 225 down 0.2%.

“Trump’s ceasefire extension means nothing. The losing side cannot dictate terms. The continuation of the siege is no different from bombardment and must be met with a military response." — Mahdi Mohammadi, adviser to Iranian Parliament Speaker Ghalibaf, Tuesday (CNN). Trump's approval on the economy fell in the last month, driven by war-related price increases, according to an AP-NORC poll. The U.S. suspended a maritime law during the war to ease oil shipping, and officials indicated Trump wants to maintain that suspension. Iran's nominal ceasefire is set to expire without agreement, but two regional officials told Fortune that both sides signaled willingness for talks in Pakistan. U.S. officials believe internal Iranian disarray, including lack of consensus on empowerment of negotiators, complicates progress.”