WASHINGTON: The United States and Iran have agreed to a two-week ceasefire brokered by Pakistan, raising hopes of a pause in a six-week conflict that has killed thousands, destabilised the Middle East and disrupted global energy supplies.
U.S. President Donald Trump announced the agreement late on Tuesday, just hours before a deadline he had set for Iran to reopen the Strait of Hormuz or face severe consequences.
Pakistan’s Prime Minister Shehbaz Sharif said Iranian and U.S. delegations had been invited to Islamabad for further talks on Friday. The truce is conditional on Iran easing its blockade of oil and gas shipments through the strategic waterway, Trump said.
The Strait of Hormuz, a key global energy route, typically carries around one-fifth of the world’s oil and liquefied natural gas. News of the agreement led to a sharp drop in oil prices and a rally in global stock markets, reflecting expectations that supply disruptions could ease.
Iran’s Foreign Minister Abbas Araqchi said Tehran would halt retaliatory attacks and allow safe passage through the strait, provided attacks against Iran cease.
Crowds gathered in parts of Iran overnight to celebrate, though some expressed scepticism about the durability of the agreement. “At least we can sleep tonight without strikes,” said one Tehran resident, speaking by phone.
The ceasefire temporarily halts a conflict launched on February 28 by the United States and Israel, which said their objective was to curb Iran’s regional influence, dismantle its nuclear programme and weaken its leadership.
Trump described the agreement as a “total and complete victory”, saying U.S. military objectives had been achieved.
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However, key issues remain unresolved. Iran retains its stockpile of highly enriched uranium and its capability to launch missiles and drones, while its leadership remains firmly in place despite months of pressure.
Tehran’s ability to disrupt Gulf energy flows, despite a heavy U.S. military presence in the region, is seen by analysts as a factor that could reshape long-term regional dynamics.
Iran’s Supreme National Security Council said the country had achieved a “historic” victory in what it described as an unjust war.
Israel said it supported the temporary halt in strikes, though the agreement has drawn criticism domestically. Opposition leader Yair Lapid called it a diplomatic setback, while former military deputy chief Yair Golan said the outcome left key security threats unresolved.
The ceasefire does not extend to Israel’s ongoing military operations in Lebanon against Hezbollah. Lebanese state media reported continued Israeli strikes in the south, including an air strike near a hospital that killed four people.
Shipping activity in the Gulf is expected to resume gradually, with companies awaiting clearer security assurances. Danish shipping firm Maersk said it would continue to assess risks before resuming transit through the Strait of Hormuz.
Negotiations over the next two weeks are expected to focus on core demands, including Iran’s nuclear programme and missile capabilities, while Tehran may push for sanctions relief, compensation and guarantees against renewed conflict.
Despite the truce, scepticism remains in some quarters. A prominent Iranian newspaper warned against concessions, describing negotiations as a potential advantage for adversaries.
