MEDIATORS moved closer today to extending the ceasefire between the United States and Iran and restarting negotiations to salvage the fragile truce before it expires next week. 

A senior Iranian military official threatened to halt trade in the region if the US does not lift its naval blockade, underscoring tensions that are overshadowing the diplomacy.

The US blockade on Iranian ports and renewed Iranian threats have imperiled the week-old agreement, but regional officials said on Wednesday that they were making progress, revealing that the US and Iran had given an “in principle agreement” to extend it to allow for more diplomacy.

The head of Iran’s joint military command warned on Wednesday that Iran would completely block exports and imports across the Persian Gulf region, the Sea of Oman and the Red Sea if the US military does not lift its blockade on Iranian ports.

“Iran will act with strength to defend its national sovereignty and its interests,” said Ali Abdollahi, calling the blockade “a prelude to violating the ceasefire.” 

Before the two-week ceasefire expires on April 22, mediators are pushing for a compromise on three main sticking points that derailed direct talks last weekend — Iran’s nuclear programme, the Strait of Hormuz and compensation for wartime damages — according to one of the regional officials who is involved in mediation efforts.

World leaders including US President Donald Trump and United Nations secretary-general Antonio Guterres said on Tuesday that revived talks in the next few days were likely.

The US and Israel launched an illegal and unprovoked war against Iran on February 28. The fighting has killed at least 3,000 people in Iran, more than 2,100 in Lebanon, 23 in Israel and more than a dozen in Gulf Arab states. Thirteen US service members have also been reported killed.

The war, now in its seventh week, has jolted markets and rattled the global economy as shipping has been cut off and air strikes have torn through military and civilian infrastructure across the region. 

Oil prices fell on hopes for an end to fighting on Wednesday and US stocks surged close to records set in January.

Yet whether the fragile ceasefire would hold appeared increasingly uncertain as the US pressed ahead with its blockade.

President Trump told Fox Business Network on Wednesday that Iran “wants to make a deal very badly,” saying: “I view it as very close to over.”

Muhammad Aurangzeb, Pakistan’s finance minister, told reporters that “our leadership is not giving up” on efforts to help end the conflict.