AP News is reporting that mediators are working to extend the two-week ceasefire between the US and Iran before it expires next week on April 22. Despite a US naval blockade and renewed threats from Tehran, regional officials report that both nations have reached an agreement in principle to continue diplomatic efforts.

The primary obstacles to a lasting peace involve disputes over Iran’s nuclear program, control of the Strait of Hormuz, and compensation for wartime damages. While Trump has expressed optimism that a deal is close, other US officials remain cautious.

The markets are already looking past the war and as long as the ceasefire holds, the downside will likely remain limited. Nevertheless, the risk that the conflict resumes at any moment is still there, so traders will need to stay nimble. In the meantime, US and Iran are replenishing their miliary arsenals.