Iran and US agree to conditional two-week ceasefire and opening of Hormuz strait

WASHINGTON/TEHRAN: Donald Trump has announced a two-week ceasefire between the United States and Iran, contingent on safe shipping through the strategically vital Strait of Hormuz, in a last-minute diplomatic push to avert further escalation.

The ceasefire was unveiled just 90 minutes before a deadline set by Trump for Tehran to strike a deal, marking a dramatic turn in a rapidly intensifying standoff.

Iran signalled conditional acceptance, with Foreign Minister Abbas Araghchi saying Tehran would halt fighting only if attacks against the country stop. He outlined a 10-point ceasefire proposal that also demands compensation for damages.

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However, cracks in the truce quickly emerged. Israel carried out fresh air strikes in southern Lebanon on Wednesday morning, insisting the ceasefire “does not include Lebanon,” despite claims by Pakistan’s Prime Minister that it would extend to the wider region.

Pakistan, which has played a mediating role, has invited both sides for further talks in Islamabad on Friday in a bid to solidify the fragile agreement. Meanwhile, UK Prime Minister Keir Starmer is heading to the Gulf to rally support for the ceasefire.

Despite Tehran publicly declaring a “major victory,” analysts say Iran remains in a weakened position following sustained pressure and strikes.

Global markets reacted swiftly, with oil prices dropping sharply after the announcement. However, analysts warn that energy costs are likely to remain elevated in the near term due to lingering uncertainty over the stability of the region.