White House Press Secretary Karoline Leavitt said on Wednesday that Iran's seizure of two ships does not break its agreement with the US. 

Iran captured the Panama-flagged MSC Francesca and the Liberian-registered Epaminodes after opening fire on them. Iran also struck a vessel called the Euphoria.

Leavitt said on Wednesday that Iran's opening fire on the three ships and capturing two of them did not violate the country's ceasefire agreement with the US. 

'These were not US ships. These were not Israeli ships. These were two international vessels,' Leavitt explained. 

'These two ships were taken by speedy gunboats. Iran has gone from having the most lethal Navy in the Middle East to now acting like a bunch of pirates,' Leavitt said, reiterating that Iran does not have control over the Strait of Hormuz. 

The announcement came after the President extended the ceasefire with Iran on Tuesday, the latest in a series of delays as he looked to keep negotiations alive.

The President initially announced the halt in hostilities on March 23. The new extension will be indefinite until Trump decides otherwise, Leavitt said. 

'The President has not set a firm deadline to receive an Iranian proposal,' she continued, adding, 'ultimately, the timeline will be dictated by the commander-in-chief.'

She said reports indicating that the ceasefire extension was to last three to five days were 'false.'  

The open-ended timeframe for Iran to return to the negotiating table comes after Vice President JD Vance canceled a trip to Islamabad, Pakistan, for another round of negotiations this week, the Associated Press reported. 

However, that trip has yet to happen, and Vance has remained close to the West Wing as the administration charts its path forward. 

Leavitt dubbed the latest stage of Operation Epic Fury as 'Operation Economic Fury,' while noting the devastating impacts of the US blockade on Iran. 

She claimed that the Islamic Republic is losing $500 million per day due to the blockade disabling their profitable oil exports. 

'There’s a ceasefire with the military and kinetic strikes, but Operation Economic Fury continues, and the effective and successful naval blockade continues as well,' the White House spokeswoman said. 

She also confirmed reports that the government is so strapped for cash that 'they can’t even pay their own people as a result of this economic leverage that President Trump has inflicted over them.'

Reports indicate that Iranian military officials and police have experienced significant payment disruptions. 

Leavitt reiterated that the outstanding US demands revolve around Iran's nuclear ambitions. 

She said the two main sticking points gumming up a deal between Iran and the US are the Islamic Republic's unwillingness to give up its pursuit of a nuclear weapon and its hesitance to hand over its stockpile of enriched uranium. 

The spokeswoman added that the administration is awaiting a 'unified' proposal from the Iranians, indicating that there are separate dueling factions that disagree internally on what US demands it will adhere to. 

The President previously threatened to resume the war if Iran failed to reach a deal by Wednesday’s deadline at 8pm ET (1am BST).

Trump wrote on social media on Wednesday that 'based on the fact that the government of Iran is seriously fractured', the US military would hold off striking 'until such time as their leaders and representatives can come up with a unified proposal.'

'I have therefore directed our Military to continue the blockade and, in all other respects, remain ready and able, and will therefore extend the Ceasefire until such time as their proposal is submitted, and discussions are concluded, one way or the other,' Trump added.