Axios

President Trump announced on Tuesday that he is extending the ceasefire with Iran, with no set deadline, giving diplomacy another chance to produce a deal.

Why it matters: The announcement, which came after a White House meeting with his national security team, landed hours before the ceasefire was set to expire — averting a potential resumption of the war and a massive regional escalation.

Vice President Vance's planned trip to Islamabad on Tuesday was delayed — then postponed indefinitely — after Iran refused to participate in a new round of peace talks, according to U.S. officials and sources with knowledge of the situation.

The latest: Iran's IRGC-affiliated Tasnim news agency reported that Tehran's negotiating team has informed the U.S. through Pakistani mediators that it will not be in Islamabad on Wednesday and sees no prospect for participation in the talks.

More Americans approve of Pope Leo XIV than President Trump, according to a new Reuters/Ipsos poll released Tuesday.

Why it matters: Trump has continued to levy attacks against Leo as the two disagree on the Iran war, and the poll's findings suggest that the president's rhetoric could alienate Catholic Americans who helped catapult him back into the White House.

Even if the Iran conflict ended now and the Strait of Hormuz fully opened, don't look for a quick return to pre-war gas prices.

Why it matters: Costlier fill-ups are the most direct and visible economic effect of the war for many Americans, and could sway midterm election races.

President Trump said Monday he'll use a Cold War-era national security law to try and bolster domestic production of motor fuels and electricity.

Why it matters: His use of the Defense Production Act comes amid high gasoline prices during the Iran war, and rising power costs.

President Trump railed against Iran war critics in a series of Truth Social posts, insisting he's under "no pressure" to make a deal with Tehran as peace talks remained in limbo Monday.

The big picture: Ahead of a looming deadline for the ceasefire ending, Trump denied that Israel had dragged the U.S. into the war, saying "Time is not my adversary," for ending it and his eventual deal will be "FAR BETTER" than former President Obama's 2015 nuclear deal.

President Trump told reporters to expect a peace deal with Iran by Monday, and said Monday morning that Vice President Vance was heading to Islamabad for talks.

• But Vance was actually still in Washington, waiting for a signal from Tehran before boarding his plane — a sign of the deep uncertainty over what will happen next.

The big picture: Trump wants the war to end, now, on his terms. But there's only one day left before the ceasefire expires, Iran still controls the Strait of Hormuz, and the sides have thus far been unable to even set a meeting. The war may therefore be on the precipice of a massive expansion.

U.S. stock futures were down Monday morning as markets absorbed weekend events that made it clear the Iran war is not over.

• The price of Brent oil futures, which took a historic plunge on Friday are now back up 5% to where they were before.

Why it matters: The economic fallout will likely intensify, as short-term measures to deal with the unprecedented energy shock no longer suffice.

• Whether that matters to markets is unclear.

Escalating tensions between Pope Leo XIV and President Trump may hinge on something unusually simple: the pope doesn't need a translator.

The big picture: Leo's native-level English removes a long-standing Vatican buffer — ambiguity in translation — that has historically softened or clarified papal critiques of U.S. leaders.

U.S. businesses that paid tariffs that the Supreme Court ruled were illegal can start applying for refunds Monday.

Why it matters: The Trump administration's launch of an online portal for tariff refund applications marks the first phase of its efforts to comply with court orders to reimburse billions of dollars in paid tariffs and interest to importers.

Oil prices are up around 6% Sunday evening after the weekend brought fresh escalation of the U.S.-Iran conflict.

Why it matters: The jump after international markets opened reverses a large chunk of the sharp decline Friday, when President Trump and Iran's foreign minister claimed the Strait of Hormuz was opening to tanker traffic.

American forces seized an Iranian-flagged cargo ship after it tried to bypass a U.S. naval blockade in the Gulf of Oman, President Trump said Sunday.

Why it matters: It's the first seizure and the first ship fired upon since the U.S. blockade went into effect last Sunday in response to Iran effectively holding the Strait or Hormuz hostage since the war began on Feb. 28.