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Oil prices fell for a second straight day as markets reacted to cautious optimism that negotiations could resume within days. But uncertainty remains high as military pressure increases and key shipping routes face disruption.

"Amazing Two Days Ahead"

President Donald Trump said he expects negotiations between U.S. and Iranian officials could restart in Pakistan within days.

"I think you’re going to be watching an amazing two days ahead," Trump told ABC News reporter Jonathan Karl.

He added that a two-week ceasefire set to expire on April 21 may not need to be extended.

"It could end either way, but I think a deal is preferable because then they can rebuild," Trump said, according to a post by Karl on X. "They really do have a different regime now. No matter what, we took out the radicals."

Vice President JD Vance, who led recent talks that ended without a breakthrough, struck a cautious tone while still pointing to possible progress.

"You are not going to solve that problem overnight," he said at an event in Georgia, noting deep mistrust between Washington and Tehran.

U.S. Military Tightens Pressure on Iran

Even as diplomacy continues, the U.S. military is increasing pressure on Iran’s economy.

Admiral Brad Cooper, head of U.S. Central Command, said U.S. forces have effectively stopped Iran’s maritime trade.

"In less than 36 hours since the blockade was implemented, U.S. forces have completely halted economic trade going into and out of Iran by sea," Cooper said in a post on X.

He said that sea trade accounts for about 90 percent of Iran’s economy.

The effects are already visible. Several ships have been turned back, including the sanctioned Chinese-owned tanker Rich Starry, which reversed course toward the Strait of Hormuz after leaving the Persian Gulf.

The Wall Street Journal reported that U.S. forces have intercepted at least eight Iran-linked oil tankers since the blockade began earlier this week.

Return to Islamabad

Diplomatic contacts are still ongoing.

Officials from Pakistan, Iran, and Gulf countries say negotiating teams could meet again in Pakistan later this week. Trump said Pakistan’s army chief, Field Marshal Asim Munir, has helped support the talks.

However, a senior Iranian source said no date has been set for the next round of negotiations.

Markets React to Rising Tension

The possibility of renewed talks has eased global markets.

Oil prices have dropped below 100 dollars, Asian stock markets have risen, and the U.S. dollar has stabilized after recent declines. Still, analysts warn the situation could change quickly.

The United States is also preparing to tighten sanctions by allowing a key waiver on Iranian oil exports to expire. A similar waiver on Russian oil has already ended, raising concerns about global supply.

Strait of Hormuz Crisis Deepens

The conflict, which began on February 28, has disrupted one of the world’s most important energy routes.

Iran has effectively closed the Strait of Hormuz, a key passage for global oil and gas shipments. This has reduced exports from the Gulf to major markets in Asia and Europe, forcing buyers to search for alternative supply sources.

The death toll has reached about 5,000 people, including roughly 3,000 in Iran and 2,000 in Lebanon.

Sticking Points in Talks

The main disagreement in negotiations remains Iran’s nuclear program.

The United States has proposed a 20 year suspension of all nuclear activity. Iran has proposed a pause of three to five years, according to sources familiar with the talks.

Rafael Grossi, head of the International Atomic Energy Agency, said in Seoul that the length of any pause is a political decision and that a compromise is possible.

The United States is also demanding that Iran remove its enriched uranium, while Iran is demanding the removal of international sanctions.

One source involved in the talks said back channel discussions have made some progress in narrowing the gap.

Regional Conflict Continues

Violence is still ongoing in the region.

Israel has continued strikes in Lebanon targeting Hezbollah, an Iran backed militant group. The United States and Israel say the strikes are not part of the ceasefire, while Iran disagrees.

Several countries have condemned recent violence.

On Tuesday, the United Kingdom, Canada, Japan, and seven other countries condemned the killing of United Nations peacekeepers in Lebanon and called for an urgent end to hostilities.

The statement followed the deaths of three Indonesian peacekeepers last month and highlighted the continuing instability.

A Critical Turning Point

With a maritime blockade in place and negotiations uncertain, the coming days may be decisive.

Diplomacy offers a possible path to de escalation. But rising military pressure and deep mistrust between the sides keep the risk of a wider conflict high, with major consequences for global energy supply and regional stability.