Trump Extends Iran Ceasefire as U.S. Halts Dollar Shipments to Iraq

President Donald Trump has granted an extension to the U.S.-Iran ceasefire, a move that temporarily stabilized global energy markets after Brent crude prices spiked to $100 per barrel. The extension comes despite high-seas friction, including a U.S. boarding of an Iranian tanker in the Indian Ocean and the retaliatory seizure of two vessels by Iranian forces in the Strait of Hormuz. While the extension provides a diplomatic window, an advisor to Iran's negotiating team described the move as "meaningless" without a unified response from Tehran. Simultaneously, the Trump administration has ramped up pressure on Baghdad by suspending military cooperation and halting U.S. dollar shipments to Iraq. The White House is utilizing these financial levers to compel the Iraqi government to dismantle Iran-backed militias following a series of attacks. Although Iraq's central bank denied any currency shortages, U.S. officials warned that inaction by Baghdad is severely damaging bilateral relations. The regional landscape remains volatile as spillover from the U.S.-Iran standoff affected ceasefires in Lebanon and northern Israel. Diplomatic efforts continue behind the scenes, with Pakistani Prime Minister Shehbaz Sharif acting as a mediator. U.S. officials suggested that the decision to extend the truce was partly influenced by internal fractures within the Iranian leadership and communication difficulties related to the health of Supreme Leader Mojtaba Khamenei.