Ceasefire odds between US and Iran plummet amid stalled negotiations

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Donald Trump’s negotiation strategy with Iran has stalled. US-Iran ceasefire odds by April 7 have plunged to 1.4% YES, down from 2% just 24 hours ago and 12% a week ago.

The market reaction has been swift. The April 7 market sits at 1.4% YES, while the April 15 market is at 6.5% YES, down from 10% yesterday. Odds for the April 30 market have also dipped to 19.5%, a drop from 28% the day prior. These odds show traders’ lack of confidence in a near-term diplomatic breakthrough amidst ongoing military escalations.

USDC trading volume gives a clearer picture. The April 7 market saw $25,714 in trades yesterday, a fraction of the $1.4M face value. It takes $18,876 to move the price by 5 points, indicating moderate liquidity. The largest single move was a 4-point drop in the May 31 market, showing traders’ pessimism.

The failure of Trump’s negotiation strategy is a significant blow to ceasefire prospects. This isn’t just noise—it’s a recalibration of expectations based on the lack of diplomatic progress. Traders are pricing in continued military actions and rejected peace proposals. A YES share for April 7 at 1.4¢ pays $1 if resolved—a 71x return, but you’d need to believe in a last-minute diplomatic miracle.

Watch for official statements from CENTCOM or new diplomatic initiatives from intermediaries like Oman or Qatar. Changes in rhetoric or a surprising diplomatic breakthrough could shift these markets.