US President Donald Trump announced on Tuesday that he is indefinitely extending the ceasefire with Iran while awaiting a unified proposal from Tehran. He emphasised that the U.S. military will continue its blockade of Iranian ports despite the extension.

The announcement came as the two-week truce was set to expire on Wednesday, with both sides warning they were prepared to resume fighting if no agreement was reached.

Trump explained that the ceasefire would remain in place until Iran submits its proposal and discussions are concluded. He noted divisions within Iran’s leadership, describing them as “seriously fractured,” and acknowledged that the killing of several top Iranian leaders had complicated negotiations, though he argued the current officials were “much more rational.”

The White House confirmed that Vice President JD Vance’s planned trip for a second round of talks has been put on hold. No further updates were provided on the possibility of in-person meetings. Iran’s foreign ministry stated that it has yet to decide whether to join negotiations, insisting it would only participate if meaningful results were expected.

United Nations Secretary-General Antonio Guterres welcomed the U.S. announcement, calling it an important step toward de-escalation. His spokesman urged all parties to refrain from actions that could undermine the ceasefire and to engage constructively in negotiations to reach a lasting resolution. The UN expressed hope that the extension would create conditions conducive to a comprehensive settlement.

Financial markets reacted to the developments. The Dow Jones Industrial Average fell 293 points, or 0.6%, after initially gaining 400 points, while the Nasdaq slipped 0.6%. Oil prices fluctuated sharply, with Brent crude rising from below $95 to nearly $100 before settling at $98.48, up 3.1%. These moves, though significant, were less volatile than earlier swings during the conflict.

Iran strongly condemned U.S. actions at sea. Its mission to the UN demanded a firm condemnation of Washington’s seizure of an Iranian-flagged cargo ship, calling it a grave breach of international law and an act of piracy.

Tehran argued that such conduct endangered international navigation and violated the ceasefire. The U.S. maintained that the vessel had attempted to evade the naval blockade near the Strait of Hormuz.

Iran’s foreign minister accused American forces of committing an act of war by boarding an Iranian oil tanker, describing the seizure of its crew as a greater violation. He vowed that Iran would defend its interests and resist what he termed bullying.

Ambassador Amir Saeid Iravani reiterated that lifting the blockade was a condition for new negotiations, suggesting talks could resume once Washington ended its restrictions. The United States has not indicated any intention to lift the blockade.

Agencies