A two-week ceasefire between the United States and Iran has been announced by former US president Donald Trump, on condition that shipping is allowed to continue through the strategically vital Strait of Hormuz.
Iranian Foreign Minister Abbas Araghchi said Tehran would agree to end hostilities if attacks against Iran are halted. He also outlined elements of a 10-point ceasefire proposal, which reportedly includes provisions on compensation.
Despite the announcement, regional tensions remain high. Israel carried out new air strikes in southern Lebanon on Wednesday morning, stating that the ceasefire “does not include Lebanon”, contradicting earlier remarks by Pakistan’s prime minister suggesting broader coverage.
The ceasefire was announced by Trump approximately 90 minutes before a self-imposed 20:00 EDT (01:00 BST) deadline for Iran to reach an agreement, marking a dramatic escalation and rapid de-escalation in diplomatic pressure.
Pakistan, which has been acting as a mediator in the talks, has invited both sides to further discussions in Islamabad on Friday. Meanwhile, UK Prime Minister Keir Starmer is reportedly travelling to the Gulf to engage with regional leaders on support for the ceasefire.
While Iran has described the developments as a “victory”, analysts suggest the country remains in a weakened negotiating position despite its public stance.
The announcement has already had economic ripple effects, with oil prices falling sharply following the news. However, correspondents warn that energy markets are likely to remain volatile and elevated in the near term as uncertainty continues.