President Donald Trump rejected extending a temporary ceasefire with Iran on Monday, as Tehran threatened to adopt a more aggressive military stance. The decision raises fresh concerns regarding the Strait of Hormuz, global oil supplies, and financial market stability.

The 60-day memorandum of understanding between the US and Iran expired without a broader peace agreement. The deal was intended to end military operations and pave the way for negotiations covering Iran’s nuclear program and US sanctions. When asked if Washington would extend the interim agreement, Trump said no, according to Reuters.

Geopolitical Tensions Escalate

A senior Iranian official stated that Tehran would shift to a "fully offensive" posture if diplomatic efforts fail. Iran accused Washington of failing to meet its commitments under the June agreement and warned it could take military action to challenge the US naval blockade.

On Tuesday, Iranian Foreign Minister Seyed Abbas Araghchi blamed Israel for trying to create an impediment to the ceasefire deal. Speaking at the 39th national conference of heads of education departments in Tehran, Araghchi stated that the Israeli regime remains the "biggest opponent and obstacle" to the implementation of the memorandum of understanding. He accused Israel of actively trying to block, derail, and prevent the agreement, saying those efforts are ongoing.

Araghchi further stated that President Donald Trump initially sought Iran’s "unconditional surrender," but shifted toward negotiations after efforts to force regime change, dismember the country, and arm opposition groups failed. He emphasized that Iran’s resistance on the battlefield compelled its adversaries to accept a ceasefire and negotiations on terms put forward by Tehran.

Previously, US intelligence agencies reportedly warned the Trump administration that Israel, under Prime Minister Benjamin Netanyahu, could undermine the US-Iran peace deal. Officials said Netanyahu faces political pressure to continue strikes against Hezbollah ahead of elections, while Israel’s refusal to withdraw troops from southern Lebanon could increase the risk of renewed hostilities and ultimately derail the agreement.

Netanyahu said Israel is confronting Iran and that the conflict was "not over yet," stressing that the country’s long-term future depends on its ability to maintain independent defense capabilities.

The dispute centers heavily on the Strait of Hormuz, a critical energy route where tanker traffic has been severely disrupted during the conflict. Iran claims the agreement gives it a role in managing the waterway, while the US rejects that interpretation. Reports indicate the Trump administration has sought back-channel communication with figures connected to Iran’s Islamic Revolutionary Guard Corps, even as formal negotiations remain stalled.

Market Reaction

US equity futures declined late Monday amid the geopolitical uncertainty. Dow Jones Industrial Average futures fell 10.00 points, or 0.02%, to 53,534.00. S&P 500 futures declined 2.25 points, or 0.03%, to 7,766.50. Nasdaq 100 futures slipped 4.75 points, or 0.02%, to 30,091.25 as of around 9:28 pm EDT.

In commodities, energy prices rose on supply disruption fears. West Texas Intermediate (WTI) crude oil rose 0.41% to $84.85 per barrel. Brent crude gained 0.15% to $91.01 per barrel. Natural gas futures advanced 0.22% to $2.696 per MMBtu.

The US dollar index stood at 99.559, down 0.02% as of around 6:34 am IST. Asian markets traded mixed, with South Korea’s KOSPI rising 3.18% to 7,199.87, while Japan’s Nikkei 225 fell 0.38% to 68,956.77.

President Donald Trump dismissed reports of deteriorating conditions aboard the USS Abraham Lincoln as "fake" on Monday, asserting that personnel on board describe the vessel as "beautifully maintained and beautifully taken care of." This statement comes amid heightened scrutiny regarding the carrier’s extended deployment in support of U.S. operations in the Iran war.

Deployment Context

The USS Abraham Lincoln departed San Diego in November 2025 and has remained deployed for more than 260 days. This period includes more than 200 days without a port call, a stretch Reuters described last week as a record for the modern Navy. Originally deployed to the Indo-Pacific, the carrier was redirected toward the Middle East in January as tensions with Tehran escalated. Trump previously characterized the carrier-led force as a "massive Armada" headed toward Iran.

The USS George Washington is currently moving from the Pacific toward the Middle East to replace the Lincoln. The incoming carrier will take over from the roughly 5,000 sailors and Marines who have supported combat operations for months.

Administration Defense

When asked by CNN’s Kristen Holmes whether the carrier had sufficient food, Trump affirmed that it did. He cited an unnamed retired admiral who stated, "I have been on ships much longer than that, sir," adding that "people on the Lincoln say it’s beautifully taken care of," according to a report by The Hill.

Defense Secretary Pete Hegseth also pushed back against accounts of food shortages, plumbing failures, water-quality problems, and mental-health strain. Hegseth called the reports "completely misrepresented," stating that the Navy provides crews with "everything we can provide them at every single moment."

CENTCOM commander Adm. Brad Cooper offered a qualified defense after visiting the Lincoln. He noted the ship had "among the lowest number of cases related to mental health" among the Navy’s 11 active carriers and praised the crew’s "camaraderie, teamwork and resilience." However, Cooper acknowledged that prolonged service at sea is "uniquely challenging and tough," adding, "This doesn’t mean that all is perfect."

Political Pressure

Democratic lawmakers continue to press Navy leaders for answers regarding the conditions aboard the carrier. House members recently described reports involving sailor mental health and living conditions as "deeply troubling." Sen. Richard Blumenthal (D-Conn.) warned that extended deployments risk becoming "a feature rather than an exception."

Trump maintained on Monday that concerns over the carrier have been overstated, describing its time at sea as a "good period of time" and insisting it remains well cared for.