U.S. and Iran Send Delegations to Islamabad Before Ceasefire Expires

Stated in an interview with Bloomberg on Monday that he is unlikely to extend the Iran ceasefire beyond Wednesday. The ceasefire expires on Wednesday evening Washington time, according to Trump. He added that he won't open the Strait of Hormuz until a deal with Tehran is reached.

U.S. and Iran agreed to a two-week ceasefire on the evening of April 7, CNBC reported. The temporary truce has come under mounting strain, with each side accusing the other of violating its terms. U.S. of attacking an Iranian commercial vessel and demanded the release of its crew.

Tehran fired on two ships attempting passage through the Strait of Hormuz, CNBC reported. The Strait of Hormuz is the throughway for 20% of the world's oil and gas transits. U.S. maintains a blockade of Iranian ports.

Delegation plans to travel to Islamabad soon for a potential second round of peace talks, according to a source familiar with the matter cited by CNBC. A delegation from Tehran plans to travel to Islamabad on Tuesday for talks, according to two Iranian officials cited by The New York Times. U.S. special envoys and Iran ended on April 12 with no resolution to issues like Iran's nuclear program.

“In the past two weeks, we have prepared to reveal new cards on the battlefield," Mohammad Bagher Ghalibaf said, without elaborating. "We do not accept negotiations under the shadow of threats," he added. U.S. ambassador to Oman warned on CNBC's 'Access Middle East' on Monday that the stakes are high if President Trump follows through with his threat of resuming military hostilities against Iran's power plants and bridges. The status of further peace talks has grown increasingly opaque, with Trump indicating Washington's readiness for additional negotiations while raising the stakes. A diplomatic roadmap, rather than a permanent settlement, is the most realistic outcome of the Islamabad talks. Any escalation, particularly military action around Hormuz, could trigger a renewed spike in oil prices and a broad risk-off move, noting the murky outlook on peace talks. Iran has repeatedly denied that it will participate in the meeting, according to CNBC. The fate of Iran's nuclear material will remain a key sticking point in negotiations. U.S. side lacks comparable expertise in international relations, adding that the best possible realistic outcome from the potential talks would be an agreement on general principles and an extension of the ceasefire, as reported by CNBC. Ghalibaf also suggested that Iran is holding fresh leverage in the standoff. U.S.”

The ceasefire took effect on the evening of April 7.

Within its short duration, accusations of violations have mounted. Tehran fired on two ships attempting passage, the latest escalation in the vital artery. The first round of talks ended on April 12 with no resolution to thorny issues like Iran's nuclear program.