The United States and Iran have agreed to a two-week ceasefire, halting a planned U.S. military strike just hours before a deadline set by President Donald Trump.
The pause follows backchannel talks involving Pakistan and is conditional on Tehran reopening the Strait of Hormuz—a critical global trade artery that had been effectively shut during the escalation. Iran has now agreed to temporarily restore shipping through the route, easing immediate pressure on energy markets.
Trump framed the outcome as a decisive win, calling it a “total and complete victory” and saying a ten-point proposal from Tehran provided “a workable basis” for further negotiations. He had previously warned that failure to reopen the strait would trigger a large-scale U.S. attack.
Markets reacted swiftly. Oil prices fell and equities rose on news that flows through one of the world’s most strategically important chokepoints would resume.
Israel backed the pause, with Prime Minister Benjamin Netanyahu’s office supporting the suspension of strikes on the condition that Iran halts attacks on U.S. and allied targets. It stressed, however, that the ceasefire does not apply to Lebanon, where operations against Hezbollah will continue.
Pakistan’s Prime Minister Shehbaz Sharif said Islamabad will host U.S. and Iranian delegations later this week in an effort to turn the temporary truce into a broader settlement.
Despite the de-escalation, the underlying conflict remains unresolved. Both Washington and Tehran claimed victory, with Iran’s Supreme National Security Council declaring the United States had suffered a “historic and crushing defeat.”
The agreement offers a short-term reprieve—but with core demands unmet and regional flashpoints still active, the risk of renewed escalation remains high.
