(C) OneIndia
ISLAMABAD — In a dramatic de-escalation that narrowly averted a catastrophic expansion of conflict, the United States and Iran have agreed to a temporary 14-day ceasefire. The breakthrough, announced just 90 minutes before a final negotiating deadline set by Washington, has prompted an immediate reopening of the strategic Strait of Hormuz and a suspension of planned U.S. military strikes.
The Midnight Breakthrough
The agreement was confirmed by U.S. President Donald Trump via social media on Tuesday evening. "On the condition that Iran agrees to the full, immediate, and safe reopening of the Strait of Hormuz, I agree to suspend bombings and attacks against Iran for two years," Trump stated on Truth Social at 6:32 PM, shortly before the 8:00 PM deadline.
The truce comes on the 38th day of a conflict that has threatened global energy security. Under the terms of the agreement, the U.S. has halted all kinetic operations, including a highly anticipated large-scale offensive aimed at dismantling Iran’s energy infrastructure. Simultaneously, Iran’s Supreme National Security Council issued a statement confirming the ceasefire, framed by Tehran as a strategic victory over "U.S. and Israeli aggression."
The Pakistani Pivot
Diplomatic sources credit Pakistan for the last-minute mediation. Prime Minister Shehbaz Sharif reportedly proposed the 14-day window approximately five hours before the deadline, using the reopening of the Strait of Hormuz—the world’s most vital oil transit chokepoint—as the primary leverage.
The White House clarified that the ceasefire became officially effective the moment the first commercial vessels resumed safe passage through the strait. This temporary halt is designed to facilitate direct, face-to-face negotiations between the two adversaries, scheduled to begin on April 10 in Islamabad.
Global Markets React with Relief
The news of the truce sent shockwaves through global financial markets, which had been pricing in a prolonged total war. Crude oil prices, which had spiked during the blockade, suffered a historic intraday collapse:
-West Texas Intermediate (WTI): Dropped 15.56% to settle at $95.37 per barrel, at one point plunging 19% to $91.05.
-Brent Crude: Fell 14.63% to $93.28 per barrel.
Safe-haven assets saw mixed movements; gold and silver rebounded by 2.6% and 4.7% respectively, while the U.S. Dollar Index (DXY) weakened by 0.91% as geopolitical risk premiums evaporated. Meanwhile, high-risk assets like Bitcoin rallied over 4%, reclaiming the $71,000 level.
A Roadmap to Permanent Peace?
While the ceasefire is "time-limited," President Trump expressed rare optimism regarding a permanent resolution. He revealed that Tehran has submitted a "10-point proposal" addressing core grievances, including non-aggression pacts, solutions for Iran’s nuclear program, and long-term management of the Strait of Hormuz.
"We have reached an understanding on almost everything that was once a subject of debate," Trump remarked, adding that the U.S. had already "exceeded all military objectives." He signaled confidence that a definitive peace treaty would be finalized within the two-week window.
Despite the optimism, analysts remain cautious. The "Islamabad Dialogue" starting this Friday will be the first time high-level officials from both nations sit across from each other in years. The world now watches to see if 14 days is enough to dismantle decades of enmity or if this is merely a brief pause before a renewed storm.
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