In a dramatic last-minute reversal, US President Donald Trump has suspended planned military strikes on Iran for two weeks and Tehran agreed to allow safe passage through the strategically vital Strait of Hormuz.
The announcement came via Trump’s Truth Social platform on Tuesday evening 3.32 AM today (08) in Sri Lanka time, just hours before a self-imposed 8pm deadline for potential attacks. Trump credited Pakistan’s Prime Minister Shehbaz Sharif and Field Marshal Asim Munir for mediating the breakthrough. He made clear that the pause depends on Iran’s commitment to the “complete, immediate, and safe opening” of the strait.
Iranian Foreign Minister Abbas Araghchi quickly confirmed the tentative deal, stating that if US attacks are halted, Iranian forces would stop defensive operations. Safe navigation through the strait will resume under coordination with Iran’s armed forces for the initial two-week period. Iran’s Supreme National Security Council indicated the ceasefire could be extended if negotiations progress well, with further talks expected in Islamabad.
Dramatic Build-Up and Trump’s Strong Rhetoric
The de-escalation follows days of intense tension. Earlier on Tuesday, Trump had issued a stark warning on social media: “A whole civilization will die tonight, never to be brought back again.” He had previously threatened to target Iranian power plants, bridges, and civilian infrastructure comments that drew sharp criticism from legal experts.
In his announcement, Trump described the arrangement as a “double-sided ceasefire” and claimed significant progress toward a long-term peace agreement. He said Iran had submitted a 10-point proposal that could serve as the foundation for broader talks, adding that most outstanding issues between the two nations had already been resolved.
Oil Markets React Positively to De-Escalation
The brief closure of the Strait of Hormuz , through which roughly 20-21% of global seaborne oil and significant volumes of liquefied natural gas typically flow had triggered one of the sharpest energy price shocks in recent years.
In recent weeks, Brent crude had surged above $110–$126 per barrel at peaks, driven by fears of prolonged disruption. West Texas Intermediate (WTI) had similarly climbed into triple digits, nearly doubling in value earlier in 2026. The crisis forced several Asian nations to begin fuel rationing and hoarding, while global supply chains faced mounting pressure.
Analysts now expect a swift reversal. Early indications following Trump’s announcement suggest oil prices could fall significantly in the coming sessions as markets price in the resumption of roughly 20 million barrels per day of crude and product flows. Energy traders anticipate an initial drop of $5–$10 per barrel or more, depending on how quickly tankers resume transit.
“This is exactly the kind of development the market has been waiting for,” said one senior commodities analyst. “Reopening Hormuz removes the single biggest risk premium that has been baked into oil prices for weeks. We could see Brent testing the $100 level again fairly quickly if implementation goes smoothly.”
Lower energy costs are expected to ease inflationary pressures worldwide, particularly in import-dependent economies across Europe and Asia. However, experts caution that full normalization of supply chains may take days or weeks even after the strait reopens.
Regional Relief and Cautious Optimism
The announcement has been welcomed across the Middle East, where allies of the US had braced for potentially devastating counter attacks. Al Jazeera correspondent Osama Bin Javaid described the region as breathing a collective sigh of relief, noting that Trump “the one who lit the fuse” was also the only one who could defuse the immediate crisis.
While the two-week ceasefire provides breathing room, many observers view it as a fragile but important first step toward a more permanent resolution in the long-troubled US-Iran relationship and broader Middle East stability.
Trump Addresses Nation on Iran War, Projects End in 2-3 Weeks
