by Stefan J. Bos, Worthy News Chief International Correspondent

WASHINGTON/TEHRAN/JERUSALEM (Worthy News) – The United States and Iran are considering a two-week extension of their ceasefire to allow more time for negotiations on a broader peace deal, easing immediate fears of renewed fighting despite an intensifying standoff over the Strait of Hormuz, officials said, prompting a global stock rally.

Officials familiar with the talks said the extension could provide space for further diplomacy following inconclusive negotiations last weekend, which were mediated by Pakistan, though no formal agreement has been announced.

The administration of U.S. President Donald J. Trump expressed cautious optimism about a potential agreement, while warning that additional economic pressure would be imposed on Tehran if it fails to compromise.

White House Press Secretary Karoline Leavitt described the discussions as “productive and ongoing” but denied that a ceasefire extension had been agreed upon.

ECONOMIC PRESSURE MOUNTS

U.S. Treasury Secretary Scott Bessent said Washington could still impose secondary sanctions on countries purchasing Iranian oil, signaling a tougher stance aimed at forcing concessions.

He also warned that the measures could hit Iran’s economy as hard as recent U.S. and Israeli strikes have hit its military capabilities.

China—previously buying the majority of Iran’s exported crude—could halt purchases under the pressure, officials indicated, as Washington also moves to end sanction waivers.

The conflict has severely disrupted shipping through the Strait of Hormuz, a vital artery for global oil and gas flows, with traffic remaining far below normal levels amid a U.S.-enforced blockade.

US: ‘NO VESSELS PASSING’

The U.S. military said no vessels were reported to have successfully passed its naval cordon in the first 48 hours, though Iranian state media claimed at least one sanctioned supertanker reached port.

Iran has warned it could expand disruptions to trade routes across the Gulf, the Sea of Oman, and the Red Sea if the blockade persists.

Key sticking points remain, particularly over Iran’s nuclear program. Washington has proposed a long-term suspension of nuclear activities, while Tehran is seeking a shorter freeze alongside the lifting of international sanctions.

Tehran suggests that diplomatic efforts have also been complicated by ongoing Israeli strikes against Iran-backed Hezbollah in Lebanon, which Iran insists should be included in any ceasefire arrangement.

Israeli Prime Minister Benjamin Netanyahu said Israel remained “prepared for any scenario.”

MARKETS REACT TO DEVELOPMENTS

With talks ongoing, financial markets showed cautious optimism, with Asian stocks rising and oil prices stabilizing below recent highs on expectations of de-escalation.

Global equities climbed to a new all-time high as investors piled back into stocks on signs the U.S. and Iran may extend a ceasefire, helping markets unwind war-driven risk premiums.

The MSCI All Country World Index—the broadest measure of global shares—rose 0.3 percent to a record and headed for a 10th consecutive day of gains.

That is the longest winning streak since September, according to analysts and market data. Asian shares rose 1.3 percent, nearly erasing their war-driven losses, as optimism over a potential U.S.-Iran deal and strong U.S. corporate earnings lifted sentiment.

ASIAN SHARES SEEN RALLYING

Asian shares rallied after Wall Street benchmarks also closed at record highs, with traders betting a de-escalation of the Middle East conflict will push down oil prices and boost economic growth.

Equity-index futures indicated the rally would continue into Europe.

Supporting sentiment, global crude benchmark Brent held around $95 a barrel, well below last month’s peak of nearly $120.

“As Middle East tensions cooled, the dollar—which emerged as the haven of choice during the conflict—weakened, with the Bloomberg Dollar Spot Index set for a ninth day of declines, its longest losing streak since December 2006,” the Bloomberg News reported.

However, analysts warn that continued uncertainty around the Strait of Hormuz and the broader conflict could keep energy markets volatile in the weeks ahead.

Diplomats say a breakthrough remains possible, but acknowledge that significant gaps must still be bridged before a lasting agreement can be reached in the troubled region.

Copyright 1999-2026 Worthy News. This article was originally published on Worthy News and was reproduced with permission.

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