Iran has stated that there are no ongoing discussions with the United States regarding an extension of the ceasefire agreement, maintaining that from Tehran's perspective, no ceasefire is currently in effect and therefore there is nothing to extend.

According to Iran's position, the United States violated the agreement just 48 hours after it was reached and formally withdrew from it a few days later. Iranian officials assert that since there is no defined ceasefire start date, the concept of an extension is moot.

One of the issues reportedly under discussion is the potential return of the United States to the conditions outlined in the memorandum of understanding. This would involve defining a specific timeframe for the implementation of US commitments under the framework. However, Iran has indicated that there has been no progress whatsoever on this front.

Earlier in the day, speculative reports suggested that both sides were considering extending the supposed ceasefire agreement, which was said to have been due to lapse on 17 August. However, even absent an official declaration prior to Iran's latest statement, it had become evident that both parties had effectively abandoned the agreement well before today. This followed repeated exchanges of military strikes as well as attacks along the Strait of Hormuz, a critical chokepoint through which roughly a fifth of global daily oil consumption transits, making any disruption there a direct concern for energy markets worldwide.

The ceasefire framework was originally part of a 60-day arrangement established through a memorandum of understanding at the end of June. The collapse of that framework underscores how fragile de-escalation channels between Washington and Tehran have proven in practice, with each breakdown reinforcing a cycle of retaliation that complicates future diplomatic efforts. Iran is now making clear that this pact no longer exists, rendering any discussion of an "extension" meaningless when neither side has been honouring the terms.

The latest headlines have provided a renewed lift to oil prices, with West Texas Intermediate (WTI) crude rising 0.2% to $83.35 per barrel, having earlier touched session lows of approximately $82.50. The price movement reflects the broader pattern in which geopolitical risk premia tied to US-Iran tensions and the security of Gulf shipping lanes remain a persistent factor in crude valuation, with each escalation or breakdown in diplomacy feeding directly into market sentiment.