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Oil, stocks fall as traders weigh outlook after Trump extends truce
Oil prices fell along with stocks on Wednesday as investors assess the chances of US-Iran peace talks after Donald Trump extended his ceasefire at the eleventh hour but kept his blockade of the Strait of Hormuz in place.
With the two-week truce in its final hours, the US president said he would push the deadline back indefinitely following a request from mediator Pakistan and stressing the need to give Tehran’s “fractured” leadership time to form a proposal.
He had previously indicated he would not extend the truce and warned he would resume bombing the Islamic republic when it expired.
“I have…directed our Military to continue the Blockade and, in all other respects, remain ready and able, and will therefore extend the Ceasefire until such time as their (Iran´s) proposal is submitted,” Trump wrote on social media.
The decision not to carry out fresh attacks on Iran but continue to prevent its ships from passing through the Strait — a major sticking point between the rivals — left traders awaiting clearer developments.
The fate of peace talks in Islamabad was hanging in the balance, with a White House official saying Vice President JD Vance would not travel Tuesday as previously planned, pending the submission of an Iranian proposal.
Tehran has said it will not attend because of what it said were unreasonable US demands, while the semi-official Tasnim news agency said there was no prospect of officials going at present.
Christopher Wong, a strategist at Oversea-Chinese Banking Corp, said: “The US and Iran may be trying to shore up leverage and playing a game of who blinks first.
“Whatever the outcome, the suspense in the interim may see risk appetite being curtailed but when either side blinks, risk proxies could rally.”
Both main oil contracts edged down, though they fluctuated in early trade, having risen around 3% Tuesday.
Equities were mostly in the red following another down day on Wall Street.
Hong Kong, Sydney, Singapore, Seoul and Wellington dropped, with Shanghai flat. Tokyo, Taipei and Wellington rose.
Traders have been struggling to find direction this week after Tehran said Friday it would allow ships through the Strait of Hormuz — which it had effectively closed since war began on February 28 —before pulling back a day later, citing the US blockade and seizure of a ship.
Donald Trump has similarly accused Tehran of violating the ceasefire by harassing vessels in the waterway, the transit passage for about one-fifth of global oil.
The developments sent crude swinging wildly, though they have held below $100, while equity markets have been less volatile on lingering optimism the two sides will eventually reach a deal to end the seven-week conflict that has hit the global economy.
“With markets surging amid optimism that the war is soon going to end, and the Hormuz Strait to open, markets are now more cautious,” wrote Fawad Razaqzada, an analyst at FOREX.com.
“If there’s no deal, I would imagine that oil prices could climb back above $100, which would likely invite pressure on equities.”
Investors are also keeping tabs on the confirmation hearing by senators of Kevin Warsh, Trump’s pick to replace Federal Reserve boss Jerome Powell, whose term ends next month.
Warsh insisted he would not be controlled by the president as he fielded questions on his assets and central bank independence during his confirmation hearing.
The former Fed governor emphasised his commitment to “ensuring that the conduct of monetary policy remains strictly independent”, adding he would “absolutely not” be Trump’s puppet.
Trump, since his return to office last year, has severely criticised Powell for not slashing rates more aggressively, and told CNBC on Tuesday he would be disappointed if the new chair did not swiftly lower borrowing costs.
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Islamabad police issue updated traffic plan ahead of potential US-Iran talks
Islamabad: Traffic Police (ITP) has issued a special traffic plan for the federal capital, with complete closure of the Red Zone and extended Red Zone, along with suspension of traffic on Islamabad Expressway from Korral to Zero Point.
According to the advisory, traffic on the Srinagar Highway may also be stopped at different times due to security arrangements.
The advisory comes amid Iranian Foreign Minister Abbas Araghchi’s expected arrival in Islamabad on Friday night, without providing details about who he was likely to meet.
Iranian state media reported that Araghchi will depart on Friday (today) for a tri-nation tour that includes visits to Islamabad, Muscat and Moscow.
“The purpose of this visit is to hold bilateral consultations and discuss current developments in the region, as well as the latest situation in the war imposed by the United States and the Israeli regime against Iran,” the state news agency IRNA said.
Meanwhile, US envoys Steve Witkoff and Jared Kushner will head to Pakistan on Saturday for a new round of talks with Iran on ending the war, the White House said.
“I can confirm Special Envoy Witkoff and Jared Kushner will be off to Pakistan again tomorrow morning to engage in talks,” White House Press Secretary Karoline Leavitt told Fox News on Friday.
Leavitt said that Vance remained ready to fly to Pakistan but will not for now. “Everyone will be on standby to fly to Pakistan if necessary,” she said.
Islamabad has been gearing up for an anticipated second round of talks between the United States and Iran. The talks would come more than two weeks after Vice President JD Vance held the first round of talks with Iranian representatives in Pakistan.
During the first round of talks in Pakistan, Vance said that Iran refused US demands on constraints on its contested nuclear programme.
In its advisory issued today, ICT Police said that entry of all types of heavy traffic into Islamabad will remain banned, while transporters have been advised to avoid travelling towards the capital.
Residents of G-5, G-6, G-7, F-6 and F-7 can use Margalla Road and 9th Avenue for travel to and from Rawalpindi. Traffic from Faisal Avenue towards Zero Point will be diverted to 9th Avenue.
In case of closure between Zero Point and Korral Chowk, commuters can use Srinagar Highway to 9th Avenue, then Stadium Road, Murree Road (Chandni Chowk) and Rawal Road to reach Korral.
Traffic from Park Road towards Club Road will be diverted to Tramri Chowk.
Commuters travelling from Bhara Kahu to Rawalpindi are advised to use Korang Road, Bani Gala and Lehtrar Road.
Traffic from Rawalpindi Saddar to Islamabad can use Colonel Sher Khan Road via Faqir Aipee Road or 9th Avenue.
Heavy traffic from Peshawar to Lahore will be diverted via Taxila Motorway, Chakri Interchange, Chak Beli Road and Rawat GT Road.
Similarly, heavy traffic from Lahore to Peshawar will use Rawat GT Road, Chak Beli Road, Chakri Interchange and Taxila via the motorway. The traffic plan will come into force from Saturday.
Citizens have been advised to follow alternate routes and cooperate with the traffic police.
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Pakistan urges UNSC to push India to restore Indus Waters Treaty a year after its suspension
UNITED NATIONS: Pakistan has urged the UN Security Council (UNSC) to address India’s suspension of the 1960 Indus Waters Treaty (IWT), warning of “grave” security, environmental, and humanitarian risks for 240 million people.
A letter from Pakistani Deputy Prime Minister/Foreign Minister, Senator Muhammad Ishaq Dar, addressed to Ambassador Jamal Fares Alrowaiei of Bahrain, which hold the 15-member Council’s presidency for the month of April, draws attention to India’s “illegal” decision to hold the IWT in abeyance one year after its suspension amid heightened political tensions with Pakistan.
The letter was handed over to the Security Council President by the Permanent Representative of Pakistan to the United Nations, Ambassador Asim Iftikhar Ahmad, at UN Headquarters in New York on Thursday, according to a press release issued by the Pakistani Mission.
DPM/FM Dar urged the Security Council to take cognizance of the alarming situation and call on India to restore the full implementation of IWT, resume all Treaty-mandated cooperation and data-sharing without delay, desist from any form of water coercion, and comply fully with its international obligations in good faith.
In this regard, Ambassador Asim Ahmad also briefed the Security Council president on the “regurgitation of baseless allegations and propaganda by India at a time when Pakistan is engaged in serious mediation efforts to promote regional and international peace and security.”
The Pakistani envoy also underscored that the unresolved Jammu and Kashmir dispute – a longstanding item on the Security Council’s agenda – was the root cause of instability in South Asia that necessitated a just and lasting settlement in accordance with relevant Council’s resolutions and wishes of the Kashmiri people.
The 66-year-old treaty governs the distribution of waters from the Indus river system, allocating the western rivers, Indus, Jhelum and Chenab, primarily to Pakistan, which depends on them for most of its agriculture. The agreement has long been seen as one of the most durable arrangements between the two countries, surviving wars and decades of hostility.
However, India announced on Apr. 23, 2025 it was holding the treaty in abeyance. The move came as India, without producing any evidence, accused Pakistan of being behind a militant attack in Indian-Occupied Kashmir. Pakistan categorically denied any involvement it in the attack, which led to a brief but intense military conflict between the two countries in May 2025.
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DPM Dar, Russian FM Lavrov discuss rescheduling of PM Shehbaz visit to Russia
ISLAMABAD: Deputy Prime Minister/Foreign Minister (DPM/FM), Senator Mohammad Ishaq Dar on Friday held a telephonic conversation with the Foreign Minister of the Russian Federation, Sergey Lavrov.
During the interaction, reiterating the importance of maintaining regular high-level engagements, both the dignitaries discussed rescheduling of the visit of Prime Minister Shehbaz Sharif to Russia at an early mutually convenient date. The DPM/FM also extended an invitation to FM Lavrov to visit Pakistan, a DPM’s Office news release said.
The two leaders discussed bilateral relations and cooperation at multilateral fora in support of international peace & security.
FM Lavrov appreciated Pakistan’s constructive role in facilitating dialogue between Iran and the United States.
The DPM/FM underscored Pakistan’s resolve to continue contributing to efforts aimed at promoting dialogue and diplomacy to resolve all issues.
Both sides agreed to remain in touch.
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