Iran rejects temporary ceasefire, proposes new Hormuz protocol

Iran’s Deputy Foreign Minister dismissed the idea of a temporary ceasefire and proposed a new protocol for the Strait of Hormuz instead. The April 21 ceasefire market has dropped to 5.5% YES, down from 30% a week ago.

Market reaction

The April 21 market sits at 5.5% YES with 5 days left. Daily volume is $5,810 in USDC. The book is thin: $1,700 moves the odds 5 points, which means single statements from either side can cause sharp swings.

The Trump-Iran diplomatic meeting market (by April 30) is at 22.4% YES. That market requires $2,672 to move 5 points, showing limited trader conviction on either side.

Why it matters

Iran’s insistence on permanent solutions rather than temporary measures is what’s driving both markets lower. The proposed Hormuz protocol includes IRGC coordination and potential shipping fees, which would give Iran ongoing leverage over the strait rather than trading that leverage away in a ceasefire deal. This makes near-term de-escalation less likely on both sides’ terms.

What to watch

A YES share in the ceasefire market costs 5.5¢ and pays $1 if resolved, a 12.5x return. That would require a dramatic reversal in diplomatic positioning within five days. Statements from CENTCOM or moves by GCC states could shift sentiment, but the Hormuz protocol proposal signals Iran is looking to set new terms, not accept existing ones.

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