The United States and Iran agreed to a two-week ceasefire overnight, narrowly avoiding a major military escalation just hours before a deadline set by US President Donald Trump was due to expire. The agreement, announced on Trump’s Truth Social platform and confirmed by Iran’s Supreme National Security Council, includes provisions to reopen the Strait of Hormuz, a vital global shipping route.
“I agree to suspend the bombing and attack of Iran for a period of two weeks. This will be a double-sided CEASEFIRE,” Trump said, adding that US forces had already met their military objectives. The deal came shortly after warnings from Trump that failure to comply could lead to widespread destruction.
Iran described the agreement as a “massive victory” and said negotiations toward a final peace settlement would begin on Friday in Pakistan. However, details of the arrangement remain unclear, including the exact timing of when the ceasefire will fully take effect. Reports indicated that attacks continued across Israel, Iran, and parts of the Gulf region early Wednesday, highlighting the fragile nature of the truce.
There were also conflicting accounts regarding the scope of the ceasefire. Israel confirmed it would suspend strikes against Iran for two weeks but said the arrangement does not extend to its conflict with Hezbollah in Lebanon. This contrasts with statements from Pakistan’s Prime Minister Shehbaz Sharif, who had been mediating talks and suggested the ceasefire would apply across all fronts, including Lebanon.
The agreement follows a diplomatic push led by Pakistan, which had urged Washington to extend its deadline and encouraged Iran to reopen the Strait of Hormuz as a goodwill gesture. Iran responded with a 10-point proposal that Trump later described as a workable basis for negotiations, though some elements remain disputed, including references to its nuclear programme.
Markets reacted quickly to the development. Oil prices fell sharply, dropping more than 17%, while stock markets in Asia rose in early trading, reflecting cautious optimism among investors. Analysts noted that uncertainty remains over the durability of the ceasefire and the terms of any longer-term settlement.
European leaders welcomed the pause in fighting but also expressed concern about the events leading up to it. The United Nations Secretary-General António Guterres called on all sides to respect international law, while German Chancellor Friedrich Merz thanked Pakistan for its mediation efforts and stressed the need for a lasting resolution.
Meanwhile, US Vice President JD Vance sparked controversy during a visit to Budapest, where he accused the European Union of interfering in Hungary’s election campaign and endorsed Prime Minister Viktor Orbán’s Fidesz party ahead of a closely watched vote. Opposition leader Péter Magyar criticised the move, warning against foreign involvement in Hungary’s domestic politics.
In a separate development, Russia issued warnings to Estonia, Latvia, and Lithuania, accusing them of assisting Ukraine in strikes on Russian oil infrastructure. The Baltic states rejected the claims as false.
The ceasefire between the US and Iran offers a brief window for diplomacy, though tensions across multiple regions continue to shape a volatile global landscape.