Iran war: World awaits next move after ceasefire extension

Iran's Revolutionary Guards fired on a container ship in the Strait of Hormuz on Wednesday, according to the British military's maritime security agency.

The United Kingdom Maritime Trade Operations (UKMTO) said the attack happened around 0355 UTC  in the strait, 15 nautical miles northeast of Oman. The attack damaged the vessel but did not cause any casualties.

"The master of a container ship reported that the vessel was approached by one IRGC gunboat... that then fired upon the vessel, which has caused heavy damage to the bridge," the UKMTO said. "No fires or environmental impact reported."

Iran did not immediately comment on the incident, which comes after recent U. seizures of Iranian-linked vessels amid heightened tensions in the region.

US President Donald Trump said he would extend the ceasefire with Iran to allow more time for peace talks, leaving the world waiting to see whether Tehran and Israel would accept the move after weeks of war shook global markets.

Trump said the United States had agreed to a request from Pakistan, which has hosted mediation efforts in Islamabad, to pause attacks on Iran until its leaders present what he called a "unified proposal" and negotiations are concluded.

However, uncertainty remained high.

Senior Iranian officials had not formally responded by early Wednesday, while initial reactions in Tehran were skeptical. Tasnim News Agency, affiliated with the Islamic Revolutionary Guard Corps, said Iran had not asked for a ceasefire extension and repeated threats to break the US naval blockade by force.

Iran considers the US Navy's blockade of Iran's trade by sea an act of war.

An adviser to parliament speaker Mohammad Bagher Qalibaf said Trump's announcement may be a ploy, according to Reuters news agency, even as Trump's rhetoric has swung widely. Just hours before extending the ceasefire, he said he expected the US bombing of Iran to restart.

Iran war's impact on global economy 

The conflict has also disrupted shipping through the Strait of Hormuz, a key global energy route, pushing oil prices higher and fueling fears of recession.

Elsewhere, it his forced countries to review their dependence on maritime trade for essential goods, including food and fuel. 

It has also severely affected businesses in the Middle East.

UN chief Antonio Guterres called the ceasefire extension an important step toward de-escalation, urging all sides to "reach a sustainable and lasting resolution."

Here are the major developments on Tuesday:

• Trump says ceasefire extended as he awaits Iran proposal 
• US sanctions network supplying Iran missile, drone programs 
• Senior Iranian commander threatens region's oil industry if war resumes 
• Vance's trip to Pakistan for peace talks is on hold 
• Israel's military says it struck a Hezbollah target after rocket fire 
• US forces intercept a sanctioned oil tanker in the Indian Ocean 
• Israel sentences two soldiers over the destruction of a statue of Jesus in southern Lebanon 

Hello and welcome to our coverage of events in Iran and the wider Middle East. 

On Tuesday, ahead of the expiration of the US ceasefire agreement with Iran, US President Donald Trump said he was ​extending the deal until an Iranian ⁠proposal ​is ​submitted ​and discussions ‌are concluded.

Trump said the United States had agreed to a pause in resumption of hostilities after a request from Pakistan.

Meanwhile, with the global economy, especially energy security, having taken a major hit from the war, the world waits to see what's next after the ceasefire's extension.

Stay tuned for all the latest developments.