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.

Oil pushed higher as US president Donald Trump cast doubt over the ceasefire with Iran after rejecting Tehran’s latest peace offer, prolonging the effective closure of the vital Strait of Hormuz. Brent crude traded near $105 a barrel after rising 2.

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.

Oil prices rose Tuesday amid concerns over a prolonged Middle East conflict after President Trump's comments that the ceasefire with Iran is on "life support"

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.

Trump called Iran’s counter peace proposal “totally unacceptable,” dimming the prospects of an imminent deal to end the war.

Trump made the announcement as last-minute ceasefire talks between the U.S. and Iran looked increasingly uncertain with a two-week truce set to expire.

By Nayera Abdallah, Elwely Elwelly and Idrees Ali DUBAI/WASHINGTON, May 11 (Reuters) - President Donald Trump's swift rejection of Iran's response to a U.S. peace proposal pushed oil prices higher on Monday,