Trump Extends Iran Ceasefire as Tehran Refuses Further Talks; UK Inflation Rises to 3.3%

U.S. President Donald Trump on Tuesday extended the two-week U.S. ceasefire with Iran, saying the extension was warranted due to Tehran's government being "seriously fractured." Trump said the ceasefire, which he earlier had said would end on Wednesday, would continue "until such time as" Iran's leaders and representatives submit a "unified proposal" to end the war with the U.S. and Israel.

The President's announcement came after reports that an expected trip by Vice President JD Vance to Pakistan for a second round of peace talks with Iranian officials had been put on hold. Iranian state news outlet Tasnim also reported that negotiators from Tehran had informed their U.S. counterparts through an intermediary in Pakistan that they would not appear for further talks.

While the ceasefire extension saw oil prices moderate, market sentiment was kept in check by Trump's refusal to lift the ongoing U.S. blockade of Iranian ports. He said in a Truth Social post: "They only say they want [the Strait of Hormuz] closed because I have it totally BLOCKADED (CLOSED!), so they merely want to 'save face.'" Trump added that lifting the blockade would mean "there can never be a Deal with Iran, unless we blow up the rest of their Country, their leaders included."

Back in Europe, the U.K.'s first inflation print covering the period since the Iran war began was released on Wednesday. The country's inflation rate jumped to 3.3% in March, official data showed, in line with economists' expectations and up from 3% the previous month. Officials said higher fuel costs had helped push the prices higher.

Suren Thiru, chief economist at the Institute of Chartered Accountants in England and Wales, said in a note following the data release that Trump's extended ceasefire deadline for Iran "won't prevent a painful period of accelerating inflation with skyrocketing energy costs and food prices likely to lift the headline rate above 4% by the autumn."

The yield on the benchmark 10-year U.K. government bond was last seen trading flat at 4.894%, after falling earlier in the session. Sterling ticked higher against the U.S. dollar, gaining 0.1% to settle at around $1.35.