By Dave Lawler and Barak Ravid
The United States and Iran have agreed to a two-week ceasefire following a diplomatic proposal from Pakistan, President Trump announced Tuesday night.
Iranian Foreign Minister Abbas Araghchi confirmed Tehran’s acceptance, saying the country would allow “safe passage” through the Strait of Hormuz during the pause, coordinating with Iran’s armed forces. The ceasefire is designed to prevent further escalation and give space for continued diplomacy.
Why it matters: The Strait of Hormuz is a critical global shipping lane for oil. Even a short disruption can ripple through international markets. This temporary agreement signals both sides are willing to avoid immediate conflict, though underlying tensions remain.
Driving the news: Pakistan played a key mediating role, proposing the two-week pause. The arrangement is temporary, and both the U.S. and Iran emphasized that it does not resolve broader disputes.
The bottom line: Markets reacted positively, with oil prices easing slightly. The ceasefire provides a short-term window for talks, but analysts caution that the situation remains fragile and could flare again if either side takes provocative action.
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