Trump extends ceasefire to give Iran more time to negotiate

President Donald Trump on Tuesday said he was extending a ceasefire with Iran to give more time for negotiations, but would maintain a US naval blockade of the country's ports.

Trump posted on social media that he would "extend the Ceasefire" until Iran came up with a proposal to end the conflict. However, he "directed our Military to continue the Blockade."

Trump's ceasefire extension came hours before it was believed to be set to expire.

It also came as the White House said Vice President JD Vance would not be going to Pakistan for what had been expected to be a second round of peace talks.

The US president cast the breakdown in more talks as resulting from Iranian infighting, adding that Pakistan's leaders had asked him to extend the truce.

"Based on the fact that the Government of Iran is seriously fractured, not unexpectedly so and, upon the request of Field Marshal Asim Munir, and Prime Minister Shehbaz Sharif, of Pakistan, we have been asked to hold our Attack on the Country of Iran until such time as their leaders and representatives can come up with a unified proposal," Trump posted on his Truth Social site.

But the blockade of ports on Iran's coast in the Strait of Hormuz will remain in place, Trump said, while the US military will "in all other respects, remain ready and able."

The ceasefire, he said, will be extended "until such time as their proposal is submitted, and discussions are concluded, one way or the other."

Stocks fall, oil climbs amid uncertainty over US-Iran talks

Oil prices climbed and stocks slid Tuesday as uncertainty reigned over US-Iranian peace talks resuming, and the expiration of the two-week ceasefire in the Middle East loomed.

Shortly after the US stock market closed, US President Donald Trump announced that he was extending the ceasefire, while keeping in place a military blockade on Iran's ports.

Investors had been hoping that despite hostile rhetoric there was scope for a deal to end the Middle East war and reopen the vital Strait of Hormuz to oil and gas shipments.

But doubts mounted about the prospects for talks being organized by Pakistan -- at least in the very near term.

Iran foreign minister Abbas Araghchi said the Islamic republic knew how to "resist bullying," posting on X that the US blockade of Iranian ports constitutes "an act of war and thus a violation of the ceasefire."

Iran war means more orders for US defense giants

US defense companies are reporting a surge in demand for military equipment, as the war in the Middle East prompts fresh orders from governments around the world.

Earnings Tuesday signaled that 2026 will be another strong year after a robust 2025 in the wake of continuing conflicts in Gaza and Ukraine, Russian incursions into European airspace, Chinese maneuverings towards Taiwan and Red Sea tensions.

More governments are ordering military equipment amid rising geopolitical strife. For those who are already in conflict, there is a need to spend more to replenish stocks or maintain machinery.

US defense companies RTX, Northrop Grumman and GE Aerospace all reported increased orders in the first quarter.

While hoping for a "sustained resolution" to the Middle East conflict, RTX CEO Chris Calio told a Wall Street analyst call the company was working with the Pentagon "to accelerate munitions production."

US officials have announced new agreements in recent months to increase production of the Tomahawk, Patriot and GEM-T missiles, among other weapons systems.

Agence France-Presse