AP News is reporting that mediators are working to extend a two-week ceasefire between the US and Iran before it expires next week on April 22. Despite the US naval blockade and renewed threats from Tehran, regional officials report that the two countries have reached an agreement in principle to continue diplomatic efforts.
The primary obstacles to lasting peace include disputes over Iran’s nuclear program, control of the Strait of Hormuz, and compensation for wartime damages. While Trump has expressed optimism that a deal is close, other US officials remain cautious.
The market is already seeing a war phase and as long as the ceasefire holds, the downside will be limited. Nevertheless, the risk of conflict resuming at any moment still remains, so traders will need to remain vigilant. Meanwhile, the US and Iran are replenishing their military arsenals.
