TEHRAN, Iran (AFP) — United States President Donald Trump extended a ceasefire with Iran to allow more time for talks, claiming the Islamic republic was “collapsing financially” because of the blockade of the Strait of Hormuz.

Trump said he had pushed back the end of the two-week truce following a request by Pakistani mediators and to give Iran’s “fractured” leadership time to form a proposal.

The ceasefire has brought some respite to a region engulfed for weeks in war but with no agreement yet in place, uncertainty has remained and brought little relief to global markets.

Trump, who said the US blockade of Iran’s ports would continue, also said the Islamic republic was “collapsing financially” due to the blockade of Hormuz.

“They want the Strait of Hormuz opened immediately — Starving for cash! Losing 500 Million Dollars a day. Military and Police complaining that they are not getting paid. SOS!!!” he wrote on social media.

Iran has all but shut the strait, a key conduit for global energy flows, since the US and Israel launched a massive attack on the Islamic republic that sparked the Middle East war.

Oil prices fell, along with stocks, on Wednesday as investors assessed the chances of US-Iran peace talks.

‘Ignored warnings’

The UK Maritime Trade Operations center reported, meanwhile, that an Iranian Revolutionary Guards gunboat had fired at a vessel off the coast of Oman on Wednesday.

According to British maritime security firm Vanguard Tech, the vessel was sailing under a Liberian flag and “had been informed it had permission to transit the Strait of Hormuz”.

But Iranian news agency Tasnim said the ship had “ignored warnings from Iran’s armed forces.”

The US Defense Department said Tuesday that US forces had intercepted and boarded a “stateless sanctioned” vessel. AFP has identified the vessel as one affiliated with Iranian activity.

Both sides have accused the other of ceasefire breaches.

Pakistan talks?

Ahead of Trump’s truce extension, it had been unclear exactly when the ceasefire would expire, with Pakistan indicating it would end at 2350 GMT Tuesday while Iran had put the timing at 0000 GMT.

The fate of peace talks hosted by Pakistan remains unclear.

A previous round of talks collapsed with Iran accusing the United States of making excessive demands.

A White House official confirmed that Vice President JD Vance would not travel to Pakistan for a new round of negotiations as previously planned, pending the submission of an Iranian proposal.

Iran, on the other hand, said never announced whether it had decided to send a delegation, with experts saying its noncommittal was a way to put pressure on the Trump administration.

Pakistani Prime Minister Shehbaz Sharif thanked Trump for extending the ceasefire. United Nations Secretary General Antonio Guterres also welcomed the move.

Deadly strike

In Lebanon, which was also plunged into war when Hezbollah launched rockets at Israel to avenge its killing of Iran’s supreme leader, an Israeli strike killed one person and wounded two others on Wednesday, Lebanese state media said.

A separate 10-day ceasefire was agreed between the two nations on Friday and included Hezbollah.

But the militant group on Tuesday said it had launched rockets and attack drones at northern Israel in response to “blatant” ceasefire violations, which it said included “attacks on civilians and the destruction of their homes and villages.”