AP says US, Iran agree 'in principle' to extend truce; Tehran denies report

The United States and Iran have reportedly agreed "in principle" to extend a two-week ceasefire, set to expire Wednesday next week, to buy more time for diplomacy aimed at ending the war, though Tehran denied the claim.

The AP, citing unnamed sources, said mediators were making progress in their efforts to salvage the fragile truce and moving closer to restarting talks between the two countries.

Iran's foreign ministry, however, said any speculation about extending the ceasefire has not been confirmed, and consultations are currently being conducted only through Pakistani mediators.

This came as the US military claimed on Wednesday to have "completely halted" Iran's maritime trade amid an ongoing naval blockade around the Strait of Hormuz. The strategic waterway, which carries about one-fifth of global oil and LNG supply, had been largely closed by Iran after the US and Israel launched a military campaign against the Islamic Republic on February 28.

Iran, in response, is reportedly considering the use of alternative ports to bypass the US blockade, which came into effect on Monday after US and Iranian officials ended their first round of talks in Islamabad without an agreement.

Despite tensions around the Strait of Hormuz, both countries have signaled a return to diplomacy. In an interview with FOX Business on Wednesday, US President Donald Trump said the war is "very close to being over."

This followed Trump's earlier remarks that he was not considering extending the ceasefire, as he predicted "an amazing two days ahead." He also said talks could resume as early as this week.

Tehran has reiterated its openess to talks, with Iranian President Masoud Pezeshkian saying the country is not seeking war and remains open to negotiations.