President Donald Trump said the ceasefire between the United States and Iran remains in effect, even as clashes were reported in the Strait of Hormuz. His comments came with a sharp warning: Iran needs to sign a formal agreement quickly.

The Strait of Hormuz is one of the world's most critical oil chokepoints. Roughly 20 percent of global oil supply passes through it, which means any sustained military activity there carries immediate consequences for energy markets and shipping costs worldwide.

Warning with a deadline

Trump's message was direct — the ceasefire holds for now, but Iran should not test it. His phrase "better sign agreement fast" signals that Washington is treating the current pause as temporary and conditional, not a settled outcome. It suggests the US is pushing for a binding deal rather than an open-ended standoff.

The reported clashes in the Strait complicate the diplomatic picture. If fighting is already occurring during a declared ceasefire, it raises questions about who controls the pace of escalation and whether both sides are enforcing the same terms. The source does not specify who was involved in the clashes or what triggered them.

What markets and traders are watching

Oil prices are sensitive to any hint of disruption in the Strait of Hormuz. Even without confirmed supply cuts, tensions there tend to push crude prices higher and raise shipping insurance premiums. A breakdown in ceasefire talks would likely amplify that pressure.

For Iran, the stakes are also economic. Prolonged military tension typically tightens sanctions enforcement and makes it harder for the country to sell oil through informal channels. A signed agreement, by contrast, could open space for sanctions relief discussions, though that outcome depends heavily on what terms the US is demanding.

The next key signal to watch is whether Iran responds publicly to Trump's deadline framing, and whether both sides agree on what the ceasefire actually covers in the Strait of Hormuz.