Washington/Tehran: The United States and Iran agreed to a two-week ceasefire just under an hour before a military deadline set by Donald Trump was due to expire, pulling the region back from the brink of a major escalation.
At the heart of the agreement is the temporary reopening of the Strait of Hormuz, a critical global oil route that carries nearly 20% of the world's oil supply. The waterway had been shut by Iran in response to weeks of intense strikes by US and Israeli forces.
What changed at the last minute
Trump said he decided to pause a planned offensive after outreach from Pakistan's leadership.
"Subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz, I agree to suspend the bombing and attack of Iran for a period of two weeks," he wrote on Truth Social.
Iran confirmed the move shortly after. Foreign Minister Abbas Araghchi said Tehran would allow safe passage through the strait for the next two weeks.
"If attacks against Iran are halted, our Powerful Armed Forces will cease their defensive operations," he said.
The immediate impact was felt in global markets, with oil prices dropping sharply after the announcement. Fuel prices had been rising steadily during the conflict, putting pressure on economies and consumers worldwide.
The reopening of the Strait of Hormuz is especially important for countries dependent on oil imports, as any disruption there quickly affects global supply chains and prices.
Talks ahead, but big differences remain
Both sides are now preparing for talks set to begin Friday in Pakistan.
Trump claimed negotiations were "very far along," adding that Iran had submitted a 10-point proposal he described as "workable."
However, Iran's publicly stated demands suggest major hurdles ahead, including:
- Removal of long-standing US sanctions
- Recognition of its control over the Strait of Hormuz
- Withdrawal of US forces from the region
Tensions still high despite pause
The ceasefire comes after weeks of heavy strikes on infrastructure and rising fears of a broader war. Even as the pause was announced, concerns remain over how fragile the agreement could be.
Trump had earlier issued stark warnings, writing, "A whole civilization will die tonight, never to be brought back again. I don't want that to happen, but it probably will."
The statement drew global criticism, with Pope Leo XIV calling such threats "truly unacceptable."
What is Pakistan's role in de-escalation?
Shehbaz Sharif confirmed Islamabad's involvement in mediation efforts, saying, "Diplomatic efforts for peaceful settlement of the ongoing war in the Middle East are progressing steadily, strongly and powerfully."
Pakistan's position as a regional player with ties to both sides appears to have helped open a window for dialogue.
With AFP inputs