US-Iran war updates: Donald Trump extends ceasefire, maintains blockade as more fuel bound for Australia

The local share market has fallen amid fears the Middle East conflict could delay US interest rate cuts, even after President Donald Trump extended a ceasefire with Iran at the request of Pakistani mediators.

At noon AEST on Wednesday, the benchmark S&P/ASX200 index was down 80.8 points, or 0.9 per cent, to 8,868.6, while the broader All Ordinaries was down 80.6 points, or 0.88 per cent, to 9,096.5.

Mr Trump said in a social media post he was extending the two-week ceasefire, which had been set to expire at 10am AEST on Thursday, because the Iranian government was “seriously fractured” and hadn’t submitted a unified proposal.

But negotiators in Tehran said they wouldn’t attend talks with the US, calling them a waste of time, Iranian state media reported.

Also in Washington, Mr Trump’s pick to chair the US Federal Reserve struck a hawkish stance during his Senate nomination hearing.

Kevin Warsh said Mr Trump had never asked him to commit to interest rate cuts and told the Senate Banking Committee that fighting inflation would be his top priority.

The market’s implied odds for a US interest rate cut by December fell to just 27.9 per cent after the meeting, from 36.2 per cent a day earlier, according to CME Fedwatch.

At midday, six of the ASX’s 11 sectors were lower and four were higher, with industrials basically flat.

US President Donald Trump says Iran is collapsing financially, claiming that local military and police personnel are starting to complain about not getting paid.

“Iran is collapsing financially!” Mr Trump announced on Truth Social.

“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!!!”

The bizarre post comes as the US President continues to taunt the regime in an attempt to force them into negotiations.

Iran’s state media have reported that the regime is ready and prepared to break US President Donald Trump’s blockade “by force” to regain control of the Strait of Hormuz.

“As long as the blockade persists, Iran will at least not reopen the Strait of Hormuz, and if necessary, it will break the blockade by force,” a statement broadcast by Tasnim News Agency said.

“If the United States wants to maintain the shadow of war, it should consider the Strait of Hormuz effectively fully closed.”

The stance adds pressure on Mr Trump who has been urged to pull out of Iran while he can, as any escalation will likely put more American lives at risk.

US President Donald Trump says that Iran is attempting to “save face” by keeping the Strait of Hormuz shut, despite wanting to open it, according to him.

“Iran doesn’t want the Strait of Hormuz closed, they want it open so they can make $500 Million Dollars a day (which is, therefore, what they are losing if it is closed!),” MR Trump wrote on Truth Social.

“They only say they want it closed because I have it totally BLOCKADED (CLOSED!), so they merely want to ‘save face’.”

The US and Iran have reached a tense stalemate over the Strait of Hormuz. Iran appears unwilling to enter peace talks while the US blockade is in place. Mr Trump doesn’t want to remove the blockade until the strait is fully open.

“People approached me four days ago, saying, ‘Sir, Iran wants to open up the Strait, immediately’,” Mr Trump added.

“But if we do that (clear the blockade), there can never be a Deal with Iran, unless we blow up the rest of their Country, their leaders included!”

Claims have emerged that US President Donald Trump was blocked from accessing the nuclear codes that would have allowed him to launch a nuclear attack on Iran.

Reports have been swirling since Mr Trump waged war on Iran that he was considering the possible use of nuclear weapons.

However, weeks into the war, a consistent line appeared almost out of nowhere stating that Mr Trump was not considering the use of nuclear weapons and never was.

White House Press Secretary Karoline Leavitt was the first to push the official line out, with Mr Trump soon following with mentions in his remarks and social media posts.

If the claims that Mr Trump was blocked from accessing the codes to launch a nuclear attack are true, he may have never had the option.

Read more.

Australia has secured four extra shiploads of diesel through BP and Viva, containing an extra 200 million litres of the fuel, scheduled to arrive at the end of May and early June.

The cargoes will come from South Korea, Brunei and Malaysia, Prime Minister Anthony Albanese announced on Wednesday morning.

They’re destined for Brisbane, Sydney, Geelong and Perth.

The shipments will be underwritten by the government.

“I think Australians know they see it on their TV every night that we’re in a very volatile environment, there are different announcements each and every day and sometimes across just a number of hours about what is going on in the Middle East,” Mr Albanese said.

“We can’t control all of that, because we’re not participants in that conflict. What we can control is how we respond, and we’re responding by throwing everything at it, everything at supply, to make a difference.”

If you are just joining us, welcome to our live coverage of the conflict in the Middle East.

Here is a recap of the latest developments:

• US President Donald Trump has agreed to extend the ceasefire with Iran, but will continue the US blockade on Iranian ports
• Iran has refused to join peace talks until the United States lifts the blockade on its ports
• Two IDF soldiers detained over toppling and striking of the Jesus statue in Lebanon.
• Prime Minister Albanese has announced that Australia has secured four extra shiploads of diesel.

Stay with us as we bring you the latest updates as the situation continues to evolve.

Donald Trump has received thanks from Pakistan’s prime minister, Shehbaz Sharif, for accepting their request to extend the ceasefire.

Mr Sharif said that the ceasefire will “allow ongoing diplomatic efforts to take their course”.

An adviser to Iran’s parliamentary speaker has accused US President Donald Trump of using the ceasefire extension as a “ploy to buy time” for a potential surprise strike, as tensions remain high despite the temporary pause in hostilities.

In a post on X, the adviser to Mohammad Qalibaf said the continuation of the US blockade on Iranian ports was “no different from bombardment and must be met with a military response”, signalling hardening rhetoric from figures linked to Iran’s Revolutionary Guards as negotiations remain uncertain.

Donald Trump’s decision to extend the ceasefire comes as reports emerged that Iran would not attend proposed peace talks in Islamabad, casting doubt over the prospects of negotiations in the coming days.

Iran’s IRGC-affiliated Tasnim news agency reported Tehran had made a “final decision” not to join the talks, with officials allegedly informing the United States through Pakistani mediators that they saw little chance of progress while the blockade on Iranian ports remains in place.

According to Axios, senior figures within Iran’s Revolutionary Guards (IRGC) had been pressuring negotiators to boycott the talks unless the US lifted the blockade.

An American official also told the New York Times the Trump administration wanted assurances that any Iranian representatives attending negotiations would have the authority to make binding decisions on a potential agreement.