Trump's announcement came after an expected trip by Vice President JD Vance to Pakistan for a peace talks with Iranian officials was put on hold.

President Trump is expected to encourage China to pressure Iran into making a deal to end the war when he visits Beijing later this week and meets with President Xi Jinping.

The United States and Iran have signalled they will hold a new round of ceasefire talks in Pakistan, two regional officials said Tuesday, as leaders on both sides warned they were prepared for more fighting if a fragile two-week truce expires without a deal.

The extension was announced just hours before it was set to expire. The president did not provide details on how long the new ceasefire extension will last.

US President also said he would continue the US Navy's blockade of Iran's trade by sea, considered an act of war by Tehran

The Iran war’s shaky ceasefire was further strained on Friday as the United Arab Emirates responded to a missile and drone strikes, hours after the U.S. said it thwarted attacks on three Navy ships in the Strait of Hormuz and retaliated against Iranian military facilities. There were no immediate reports of damage in the UAE.

The violence jeopardised the fragile truce between Iran and the US while the two sides considered a deal to end the fighting

As President Trump again voices optimism that Iran will "make a deal" to end the war, Tehran declares itself the regulator of Strait of Hormuz shipping.