Iran & US agree to 2 week ceasefire with Pakistan's help, stock markets surge & oil price falls

Iran and the United States have agreed to a two-week ceasefire, based on the condition that the Strait of Hormuz is reopened, and shipping is allowed to pass safely through the waterway.

Complete, immediate, and safe

U.S. President Donald Trump announced the ceasefire on his Truth Social platform, crediting Pakistan Prime Minister and Asim Munir for brokering the ceasefire.

Trump said that they had requested he “hold off the destructive force being sent tonight to Iran”.

Trump said that he agreed to the suspension of bombing and attacks against Iran for two weeks “subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz”.

10-point proposal

Al Jazeera reported that Iran Foreign Minister Abbas Aragchi confirmed a tentative deal had been reached.

Posting on social media, Aragchi also credited Pakistani leaders, and said that “if attacks against Iran are halted, our Powerful Armed Forces will cease their defensive operations”.

He also said that for two weeks safe passage “will be possible”, but would require “coordination with Iran’s Armed Forces and with due consideration of technical limitations”.

Prior to the Iran War, coordination with Iran’s armed forces was not a requirement to pass through the Strait.

Aragchi’s message also acknowledged the 15-point peace proposal that Trump had issued several weeks ago, that Iran had until now failed to acknowledge.

He said that Trump had accepted the general framework of Iran’s own 10-point proposal as a “basis of negotiations”.

Civilisation will die

The ceasefire comes after Trump had threatened on Apr. 7 that a “whole civilization will die tonight” unless a ceasefire was reached.

Trump had promised to attack civilian infrastructure in the form of bridges, power plants, and previously desalination plants.

Reports also indicated that strikes were conducted on Iran’s main oil export facility Kharg Island.

The Iran War is now in its sixth week, resulting in the effective closure of the Strait of Hormuz, causing havoc in global energy markets, and the fears for the markets in severe need of petrochemical by-products, such as agriculture.

Surge

Nikkei reported that Asian stock markets “surged” after the announcement of the two-week ceasefire.

Japanese stock markets rose 4.8 per cent at one point, and in South Korea markets rose over 5 per cent.

The price of crude oil fell nearly 15 per cent, falling under the US$100 (S$127.5) a barrel mark.

Top image via Wikipedia & White House Gallery