Trump indicated the pause was intended to create diplomatic space for negotiations, signaling a possible shift toward a negotiated resolution in the strategically vital waterway, a key global oil transit route.

The decision comes amid heightened tensions linked to the ongoing Iran conflict, which has disrupted shipping flows and contributed to increased energy costs. Despite the pause in operational activity, the continued enforcement of the blockade suggests that pressure on the situation will be maintained while talks proceed.

The Strait of Hormuz, through which a significant share of the world’s oil supply passes, has remained at the center of geopolitical and economic concerns, with recent incidents underscoring the risks to commercial shipping and global energy markets.

US officials have not disclosed details of the proposed agreement or the parties involved, and no timeline has been provided for the duration of the pause.

“The ceasefire is not over,” Hegseth told reporters during a briefing at the Pentagon, adding that U.S. forces would continue to defend maritime traffic while avoiding escalation. He said any determination of a ceasefire breach would rest with President Donald Trump.

The comments came as tensions mounted following reported exchanges of fire between U.S. and Iranian forces, underscoring the fragility of a truce reached after hostilities erupted earlier this year. The confrontation has centered on control and access to the Strait of Hormuz, a vital conduit for global energy shipments.

Trump on Monday announced the launch of “Project Freedom,” a military operation aimed at protecting commercial vessels transiting the waterway. Hegseth described the initiative as “defensive in nature, focused in scope and temporary in duration,” with the sole objective of shielding shipping from what he termed Iranian aggression.

“Iran does not control the strait,” Hegseth said, adding that U.S. forces would not need to enter Iranian territorial waters or airspace to carry out the mission. “We’re not looking for a fight.”Iran had effectively disrupted traffic through the strait after the conflict began on February 28, following the involvement of U.S. and Israeli forces, raising concerns over global supply chains and energy markets.

Hegseth cautioned Tehran to act prudently, reiterating Washington’s position that it seeks to prevent escalation while maintaining freedom of navigation through one of the world’s most strategically sensitive maritime corridors.

According to an official statement, the exchange focused on developments in the region amid heightened geopolitical tensions, though no further details were provided on specific issues or outcomes of the discussion.

The call comes as countries across the region intensify diplomatic engagement in response to evolving security dynamics linked to the ongoing crisis involving Iran and its broader regional implications.

The warning came as Israeli authorities issued new displacement orders for 16 areas south of the Litani River, instructing residents to move toward the nearby city of Saida, adding further pressure on already strained communities and humanitarian operations.

U.N. spokesperson Stephane Dujarric said civilians continued to bear the brunt of the hostilities, with women and children disproportionately affected by displacement, overcrowded shelters and worsening living conditions.

He said reports indicated rising levels of psychological distress, family separation and increased risks of gender-based violence, particularly in temporary shelters where access to protection services remains limited.

“We and our partners are responding to the mounting needs where access allows,” Dujarric told reporters, while noting that humanitarian operations remain constrained by insecurity and restricted access in several affected areas.

A new joint analysis by the U.N. Food and Agriculture Organization and the World Food Programme found that a sharp escalation in violence had reversed earlier food-security improvements and pushed Lebanon back into a crisis phase.

According to the latest Integrated Food Security Phase Classification assessment, around 1.24 million people nearly one in four of those surveyed — are projected to face IPC Phase 3, or crisis-level, food insecurity or worse during the April-to-August period.

At that level, households are typically forced to adopt severe coping strategies such as skipping meals, reducing food quality or selling essential assets to afford basic supplies.

Lebanon has been grappling with overlapping economic, political and security crises for years, with inflation, currency collapse and weakened state institutions already undermining access to food and public services before the latest surge in violence.

Humanitarian agencies also warned that funding shortfalls were limiting relief efforts. The Lebanon Flash Appeal has received just over $117 million so far, only 38% of the $308 million required to meet urgent needs, according to U.N. figures.

Dujarric said that without immediate additional funding and improved humanitarian access, conditions were likely to deteriorate further, leaving more families exposed to hunger, displacement and prolonged hardship.

The attack targeted a unit serving with the United Nations Interim Force in Lebanon as it was traveling to an outpost isolated by ongoing hostilities between Israeli forces and Hezbollah, according to UN officials.

In a statement, Security Council members denounced the assault “in the strongest terms” and reaffirmed their full support for UNIFIL operations in the region. The council did not assign responsibility, though France has blamed Hezbollah for the attack.

The incident occurred on Saturday amid heightened tensions along the Lebanon-Israel border, where clashes have intensified in recent weeks. UNIFIL peacekeepers are mandated to monitor hostilities and support stability in southern Lebanon.

French authorities have not released further operational details about the ambush, while the United Nations has called for accountability and the protection of peacekeeping personnel under international law.

The attack underscores growing risks faced by UN forces operating in volatile regions conflict zones, as diplomatic efforts continue to prevent further escalation in Lebanon.

IEA Executive Director Fatih Birol said that while March deliveries largely reflected cargoes loaded before the crisis escalated, the situation has shifted significantly. “During the month of April, nothing has been loaded,” he told reporters following meetings at the International Monetary Fund, adding that prolonged disruption would intensify market pressures.

Birol said the agency is tracking damage to energy infrastructure across the region, noting that more than a third of over 80 affected facilities have sustained severe damage. He described the situation as a major energy security challenge with global implications, warning that no country would be insulated from the fallout.

IMF Managing Director Kristalina Georgieva said there is an urgent need to assess the scale of economic impact stemming from infrastructure losses tied to the conflict.World Bank President Ajay Banga said the institution is preparing for multiple scenarios depending on the duration and intensity of hostilities, including expanded financial support.

The IMF has indicated it can make up to $50 billion available, while the World Bank has outlined potential financing of up to $25 billion, with the possibility of increasing total support to $60 billion over six months if conditions worsen.

The conflict, triggered by U.S.-Israeli strikes on Iran beginning February 28, has disrupted flows through the Strait of Hormuz, a critical artery for global oil shipments. Iran’s actions to impede maritime traffic, followed by a U.S. naval blockade, have heightened concerns over supply constraints and price volatility.

Although a two-week ceasefire was agreed last week to enable negotiations, talks in Islamabad failed to produce a breakthrough, raising uncertainty over whether the truce will hold.

International mediators, including Pakistan and Qatar, have urged both sides to maintain the ceasefire, while UN Secretary-General Antonio Guterres called for the restoration of freedom of navigation in the region.

In a telephone conversation, Merz also voiced “grave concern” over developments in the Palestinian territories and stressed that there must be no “de facto partial annexation” of the West Bank, according to a government spokesperson.

The call comes amid escalating tensions following the conflict launched on February 28 by Israel and the United States against Iran, which has increasingly threatened to expand into a broader regional war. German officials said Merz reiterated Berlin’s support for diplomatic efforts aimed at securing an understanding between Washington and Tehran.

Merz, who had initially backed the U.S.-Israeli military action, has shifted his stance as economic risks and security concerns intensify, including Iranian retaliatory strikes and disruptions to global energy flows.

He also indicated that Germany could contribute to ensuring maritime security in the Strait of Hormuz, a key global oil transit route, but only after hostilities cease and necessary conditions are in place.Shipping through the strait, which previously accounted for roughly one-fifth of global oil supplies, has been significantly disrupted amid Iranian threats targeting commercial vessels.

The situation has been further complicated by a partial naval blockade declared by U.S. President Donald Trump following stalled negotiations with Iran.

The vote, initially expected on Saturday, will now take place sometime next week, according to two diplomats who spoke on condition of anonymity due to the private nature of council discussions.

Bahrain, which holds the rotating presidency of the United Nations Security Council this month, had significantly watered down the resolution in an effort to secure consensus among the council’s 15 members.

The revised draft authorizes defensive measures to ensure safe passage of commercial vessels through the strait, stopping short of the offensive military action initially backed by Gulf states and the United States.

The delay underscores continued divisions within the council, with Russia and China still unwilling to support the modified proposal, diplomats said.

The Strait of Hormuz, through which roughly one-fifth of global oil supply typically flows, has become a focal point of international concern amid escalating conflict in the region, raising fears over energy security and global trade disruptions.

Bahrain has been seeking unanimous backing for the resolution, but the postponement highlights the challenges of achieving agreement among major powers on how to respond to the the crisis.

Brent crude futures rose 65 cents to $112.84 a barrel by 0446 GMT, while U.S. West Texas Intermediate climbed 84 cents to $98.75, after both benchmarks had earlier fallen by more than $1. The spread between the two contracts widened to over $13 a barrel, the largest gap in years.

The volatility follows a U.S. decision to allow the temporary delivery and sale of Iranian-origin oil already at sea, injecting additional supply into markets strained by disruptions linked to the ongoing conflict.

Market sentiment remained highly sensitive to geopolitical developments after Donald Trump issued a 48-hour ultimatum demanding Iran fully reopen the Strait of Hormuz or face strikes on its power plants.Iranian officials responded with warnings that any such action would trigger attacks on critical energy and infrastructure assets across the Gulf.

Iran’s Parliament Speaker Mohammad Baqer Qalibaf said regional facilities could face “irreversible” damage if Iranian plants were targeted.Analysts said the exchange of threats pointed to a heightened risk of escalation.

Amrita Sen of Energy Aspects said markets were underestimating the likelihood that Iran would resist pressure, warning that further confrontation could have severe consequences for Gulf infrastructure.

Despite the release of additional Iranian oil, traders remained focused on the scale of supply disruption caused by the conflict. The Strait of Hormuz, a key artery for global energy flows handling roughly 20% of oil and liquefied natural gas trade, has been severely affected.Industry estimates suggest the war has removed between 7 million and 10 million barrels per day from Middle East production, tightening global supply even as policymakers attempt to stabilise markets.

Vandana Hari of Vanda Insights said short-term price movements would continue to be driven by geopolitical rhetoric, but longer-term trends would depend on the restoration of oil flows from the region.

Fatih Birol, head of the International Energy Agency, described the current crisis as “very severe,” exceeding the combined impact of the oil shocks of the 1970s.The conflict, now in its fourth week, has damaged major energy facilities and disrupted shipping routes, amplifying concerns over prolonged supply constraints and broader economic fallout.

The interplay between potential supply increases from Iranian oil and the risk of further infrastructure damage has left markets exposed to sharp price swings as the situation evolves.

Trump issued the warning in a social media post on Saturday, saying Washington would “obliterate” Iranian power facilities if the strategic waterway remained closed. The strait, a critical conduit for global oil flows, has been effectively shut amid the ongoing hostilities.

Iran’s military command, Khatam al-Anbiya, said any attack on its fuel and energy infrastructure would trigger strikes on U.S. and Israeli assets, including critical civilian-linked systems.

The statement, carried by state media, underscored a widening scope of potential targets beyond conventional military sites.

Iranian officials also indicated that access through the Strait of Hormuz would be restricted, with passage permitted selectively, reflecting Tehran’s control over the route during the conflict.

The escalation coincided with renewed Iranian missile barrages on Israel, including strikes near the southern cities of Dimona and Arad, close to the Negev Desert nuclear research area.

Israeli authorities said dozens were injured and residential buildings sustained heavy damage.Israeli Prime Minister Benjamin Netanyahu said the impact in Arad caused extensive destruction but no fatalities, while urging adherence to air raid warnings. Israel’s military acknowledged that some missiles were not intercepted, marking a breach in air defence coverage in the area.

Iran’s parliament speaker Mohammad Bagher Ghalibaf said the strikes indicated a shift to a new operational phase in the conflict.

The conflict has extended beyond Iran and Israel, with Hezbollah claiming responsibility for a deadly strike in northern Israel, while Gulf states reported drone and missile activity targeting energy infrastructure.

Iran also targeted the joint UK-U.S. military facility at Diego Garcia in the Indian Ocean, though officials said the strike was unsuccessful. Military assessments cited in reports suggested the possibility of longer-range capabilities or alternative launch methods, though no confirmation was provided by Tehran.

The disruption to shipping through the Strait of Hormuz has halted most tanker traffic, contributing to supply constraints and rising global energy prices. Countries including the United Arab Emirates, Britain, Germany, France and Japan have expressed readiness to support efforts to restore safe navigation through the waterway.

U.S. Central Command said earlier that strikes on Iranian coastal facilities had degraded Tehran’s ability to target vessels in the strait. Additional U.S. naval assets and personnel are being deployed to the region as part of ongoing operations.

Casualties have mounted across multiple theatres, with Iran reporting more than 1,500 deaths, while Israel, the United States and Gulf states have also recorded military and civilian losses.