Ceasefire extension between Israel and Lebanon follows high-level Washington talks

US President Donald Trump has announced a three-week extension to the ceasefire between Israel and Lebanon, a decision formalised following high-level diplomatic engagements in Washington. The extension was confirmed after a second round of US-facilitated talks held in the Oval Office, where President Trump hosted Israeli Ambassador Yechiel Leiter and Lebanese Ambassador Nada Moawad. The meeting also involved Vice President JD Vance and Secretary of State Marco Rubio, marking a continued effort by the administration to stabilise the front line between the two nations.

While the immediate fighting pauses, the White House has indicated that the current arrangement is not intended to be permanent. President Trump expressed hope that a comprehensive peace deal could be concluded later this year, suggesting that the current ceasefire serves as a necessary bridge toward a more durable resolution. During the briefing, the President stated that the United States would work closely with Lebanon to assist in its protection against Hezbollah, though the Iran-aligned group was not present at the recent Washington discussions.

The diplomatic push for a lasting settlement contrasts with the continued volatility in other regions of the Middle East. Concurrently, global oil markets have reacted sharply to reports of renewed military escalation in the Strait of Hormuz. Brent crude futures rose 1.17 per cent to $106.30 a barrel, while West Texas Intermediate climbed 1.12 per cent to $96.92, driven by fears that Iran's imposition of tolls and the threat of naval intervention could disrupt Gulf supply chains.

Tensions in the strait have intensified following reports that Iranian commandos boarded a cargo ship and that Tehran's air defences engaged hostile targets. In response to these developments, the US Navy has been ordered to shoot and kill boats laying mines in the waterway. Analysts suggest that clearing all existing mines could take up to six months, a delay that Goldman Sachs estimates has already resulted in approximately 14.5 million barrels per day of Gulf crude output being offline in April.

The financial impact of these precautionary shutdowns is significant, with the bank noting that the reduction represents around 57 per cent of pre-war supply. Goldman Sachs research indicates that production could recover relatively quickly once the strait reopens safely, supported by spare capacity in Saudi Arabia and the United Arab Emirates. However, the immediate market reaction reflects deep uncertainty regarding the stability of the region's energy infrastructure.

Looking ahead, President Trump indicated that he anticipates hosting Israeli Prime Minister Benjamin Netanyahu and Lebanese President Joseph Aoun in the near future to advance the peace process. This potential summit aims to formalise the diplomatic momentum generated by the recent ambassadorial talks. Meanwhile, a senior Iranian parliament official confirmed that Tehran has received the first revenue from the tolls imposed on the Strait of Hormuz, highlighting the complex economic and security dynamics at play across the region.