Trump Extends Iran Ceasefire Amid Attacks in Strait of Hormuz

U.S. President Donald Trump announced an indefinite extension of the ceasefire with Iran, citing a request by Pakistani mediators to allow time for discussions aimed at ending the ongoing conflict. The initial two-week ceasefire was set to expire on April 23, but Trump stated that he would continue the U.S. Navy's blockade of Iran's trade by sea, which Iran considers an act of war.

According to Reuters, Iran has not requested a ceasefire extension and repeated threats to break the U.S. blockade by force. An adviser to Iran's lead negotiator, Mohammad Baqer Qalibaf, said Trump's announcement carried little weight and may be a ploy. Meanwhile, Iranian President Masoud Pezeshkian insisted on the country's nuclear rights, stating that Trump has no justification to deprive Iran of its nuclear rights.

The U.S. imposed new sanctions targeting 14 people and companies that help Iran obtain weapons. The targets are based in Iran, Turkey, and the United Arab Emirates and were cited for their involvement in procuring or transporting weapons or components on Iran's behalf. Treasury Secretary Scott Bessent stated that 'The Iranian regime must be held accountable for its extortion of global energy markets and indiscriminate targeting of civilians with missiles and drones.'

Despite the ceasefire extension, tensions remain high in the Strait of Hormuz. Two ships came under fire from Iran's paramilitary Revolutionary Guard Corps after ignoring warnings, according to reports from NPR, BBC, and CBS News. The attacks occurred on Wednesday, with one ship sustaining heavy damage but no injuries reported. Iran's navy confirmed the seizure of two cargo ships in the Strait of Hormuz, taking them to the country's coast.

The U.S. military seized an Iranian-flagged container ship, MV Touska, for allegedly violating a U.S. blockade. Maritime security sources suggested the vessel may have been carrying dual-use items that could be used by the military. Iran demanded the United States release the ship and threatened to defend itself.

The global economy continues to feel the impact of the conflict, with Brent crude prices hovering near $100 per barrel due to the closure of the Strait of Hormuz. The yield on the 10-year U.S. Treasury note rose less than 1 basis point to 4.25%, while the longer-dated 30-year Treasury bond yield was seen trading up less than 1 basis point at 4.886%. Analysts suggest that market enthusiasm over the Strait of Hormuz reopening may have been premature.