Ed Elson

Both countries' delegations are headed to Pakistan to engage in talks ahead of the deadline.

President Trump said it's, quote, highly unlikely that the ceasefire would be extended if a deal was not reached before Wednesday.

He also said the U.S.

would continue to blockade the Strait of Hormuz until a deal is signed.

And the meeting follows an active weekend of fighting.

On Friday, Iran announced it would reopen the Strait of Hormuz after Israel and Hezbollah agreed to a ceasefire.

Stocks soared to record highs on that news.

However, Tehran reversed course after the U.S.

refused to lift its own blockade.

Then on Sunday, the U.S.

Navy fired on an Iranian cargo ship.

and Iran threatened retaliation.

Oil prices rose yesterday and stocks slipped.

So, here to give us the update on the war and what it means for us and for the economy, we're speaking with everyone's favorite, our favorite, Justin Wolfers, Professor of Economics and Public Policy at the University of Michigan.

So, Justin,

The ceasefire might end tomorrow.

That's at least the deadline.

I mean, there's a lot to get into, but I guess my first question is, does that even matter?

Because, you know, this weekend we heard from Trump that Iran violated the ceasefire.

Iran said that we violated the ceasefire.