US-Iran ceasefire may not be extended if no deal reached

US President Donald Trump said Friday that he may not extend a tentative ceasefire with Iran if negotiations fail to produce an agreement by Wednesday, raising the prospect of a renewed military action.

US and Iranian delegations are reportedly expected to hold a second round of peace talks on Monday, as per reports, though US officials have not confirmed the schedule. Trump, however, expressed confidence that both sides are close to reaching a deal.

Meanwhile, in Lebanon, the first 24 hours of a separate 10-day truce appear largely to be holding, despite accusations from Lebanon of several ceasefire violations by Israel.

In other developments, the US Treasury Department issued another waiver allowing the delivery and sale of sanctioned seaborne Russian crude, specifically applying to shipments loaded on vessels from April 17 through May 16.

Financial markets reacted sharply as oil prices plunged following the Iranian foreign minister’s declaration that the Strait of Hormuz is open, while the S&P 500 hit its third straight record high and the Nasdaq Composite recorded its longest winning streak since 1992.

On the diplomatic front, Trump said Chinese President Xi Jinping is “very happy” about the reopening of the Strait of Hormuz, expressing optimism ahead of their planned May talks.

The coming days are expected to be pivotal for US-Iran negotiations, with the potential expiration of the ceasefire and broader regional stability hanging in the balance.

Meanwhile, Iran has warned that it will close the strategic Strait of Hormuz again if the United States continues its blockade of Iranian ports, parliament speaker Mohammad Bagher Ghalibaf said Saturday.

In a related development, Lebanese President Joseph Aoun said that his country was on the verge of a “new phase” of “permanent agreements” and no longer an “arena” for anyone’s wars, after a ceasefire in the Israel-Hezbollah war went into force.