President Donald Trump announced on 21 April that the United States will extend its ceasefire with Iran until Tehran’s leadership can “come up with a unified proposal.” The original two-week ceasefire, agreed on 7 April to halt more than a month of US-Israeli military operations, had been set to expire on 22 April.

Why it matters

The war with Iran, which began in early March, has killed thousands, disrupted global shipping through the Strait of Hormuz and pushed oil prices to their highest levels since 2022. The ceasefire extension prevents an immediate resumption of hostilities but leaves the underlying conflict unresolved.

What Trump said

In a post on Truth Social, Trump said Iran’s government was “seriously fractured” and that he was extending the ceasefire at the request of Pakistan’s leadership, which had offered to host negotiations.

He did not set a new deadline. He also did not rule out resuming military operations if talks fail to materialise.

Iran’s position

Iran’s foreign ministry said it would not send negotiators to Islamabad for talks with the United States. Tehran has accused Washington of violating the ceasefire by maintaining a naval blockade in the Strait of Hormuz and seizing an Iranian cargo vessel on 19 April.

The US seized the vessel, claiming it was carrying materials related to Iran’s nuclear programme. Iran has demanded its immediate release.

Vance trip cancelled

Vice President JD Vance had been scheduled to travel to Pakistan to lead the American negotiating team. Following Trump’s announcement, a White House official said Vance would not be travelling and that any future in-person meetings would be announced separately.

Market reaction

Oil markets were stable following the announcement, with Brent crude holding below $70 per barrel. The initial ceasefire on 7 April had triggered a 16% drop in oil prices and a rally in emerging market currencies.

What happens next

The extension has no fixed end date, which creates both opportunity and uncertainty. Supporters argue it gives Iran’s divided leadership time to form a negotiating position. Critics, including some Republican senators, say an open-ended pause allows Iran to regroup militarily without making concessions.

Pakistan has said it remains ready to host talks when both sides are prepared.