US President Donald Trump on Tuesday (Wednesday morning in Manila) suspended planned strikes on Iran after Pakistan brokered a two-week ceasefire. The agreement is conditional on Iran reopening the Strait of Hormuz, a key route for roughly a fifth of global oil shipments.
The ceasefire immediately eased market pressures. Brent crude fell nearly 16 percent to USD92.30 a barrel, while West Texas Intermediate dropped 15 percent to around USD95, though both remain above pre-February 28 levels following prior regional tensions. The oil retreat could quickly reverse in case of any lapse in ceasefire compliance.
The suspension came just hours before the US had set a deadline (8am Wednesday in Manila) for attacks on Iranian infrastructure, including power plants and bridges.
Trump framed the pause as a diplomatic window to negotiate a broader settlement, citing a 10-point proposal from Tehran. “Subject to Iran agreeing to the complete, immediate, and safe opening of the Strait of Hormuz, I agree to suspend the bombing and attack of Iran for a period of two weeks,” he wrote online.
Iranian Foreign Minister Abbas Araghchi confirmed the ceasefire, saying Iran’s armed forces would temporarily halt defensive operations and coordinate safe passage through the Strait of Hormuz.
Pakistan’s Prime Minister Shehbaz Sharif and military leadership were credited with mediating the deal, intended to reduce immediate risk, and allow diplomacy to advance.
Global markets and governments welcomed the temporary pause, though analysts cautioned that regional tensions remain fragile. For energy traders, the agreement provides short-term stability in a volatile market, while investors continue to monitor both compliance and diplomatic progress in the Middle East.
