Iran and US Reach Two-Week Ceasefire: Strait of Hormuz to Reopen

The United States and Iran reached a two-week ceasefire agreement less than two hours before President Trump's deadline for wide-scale strikes. Under the deal, the US and Israel will suspend bombing Iran in exchange for Iran reopening the Strait of Hormuz for safe passage. Diplomatic talks will continue in Pakistan on April 10.

Terms of the Deal

Iran's Supreme National Security Council formally accepted the ceasefire, and Iranian Foreign Minister Abbas Araghchi confirmed the two-week window gives diplomacy "a fighting chance." During this period, both sides will work on a broader agreement covering Iran's nuclear program, sanctions relief, and the release of frozen assets that have been at the center of the dispute for years.

Pakistani Mediation

Pakistan will host delegations from both the US and Iran in Islamabad on April 10. Islamabad's prime minister described the initiative as a "historic step that averts global catastrophe." Pakistan is also reportedly discussing verification mechanisms to monitor compliance with the ceasefire terms on both sides.

Market Response

Oil prices dropped sharply on the news — Brent crude fell to $92 per barrel, down from recent peaks above $110. The S&P 500 gained 2.7% during the session, and Asian markets opened higher. Airlines and tourism stocks were among the biggest gainers as jet fuel futures retreated substantially.

Regional Implications

While the ceasefire eased tensions across the Middle East, damage from Iranian drone strikes on a SABIC petrochemical complex in Jubail, Saudi Arabia remains under investigation. Regional leaders from Gulf states and Turkey welcomed the diplomatic breakthrough and pledged continued support for the negotiation process.