US and Iran Agree to Two-Week Ceasefire Brokered by Pakistan Amid Middle East Conflict

The United States and Iran agreed to a two-week ceasefire brokered by Pakistan, pausing a six-week-old war that has killed thousands, disrupted global energy supplies, and spread instability across the Middle East. President Donald Trump announced the agreement late on Tuesday, just two hours before a deadline he had set for Iran to open the blockaded Strait of Hormuz or face the destruction of its "whole civilisation." Pakistani Prime Minister Shehbaz Sharif, who helped broker the deal, said he had invited Iranian and U.S. delegations to meet in Islamabad on Friday, with Iran's president confirming attendance. The Trump administration announced it would send Vice President JD Vance to lead the U.S. negotiating team, joined by special envoy Steve Witkoff and Jared Kushner, Trump's son-in-law. White House press secretary Karoline Leavitt confirmed the first round of formal talks would take place on Saturday. The ceasefire came after six weeks of fighting that began on February 28, 2026, when the United States and Israel launched joint strikes against Iran.

The conflict began on February 28, 2026, when the United States and Israel launched joint strikes on Iran in what was designated Operation Epic Fury. Prior nuclear talks in Geneva in late February 2026 had ended with some progress but no breakthrough, and were set to resume in Vienna the following week before the strikes began. The war has killed thousands, according to Reuters reporting, and caused what sources describe as unprecedented disruption to global energy supplies. The Strait of Hormuz, through which up to 20% of the world's crude oil, refined products, and liquefied natural gas moved prior to the conflict, has been effectively blockaded during the fighting.

The ceasefire showed immediate signs of fragility on its first day. At least five Gulf Arab nations reported being attacked by Iranian missiles and drones on Wednesday, even after the pause in hostilities was announced. Iran said its oil refinery on Lavan Island had been attacked. Israel continued strikes in Lebanon, which both Israel and Trump insisted fell outside the scope of the ceasefire agreement. Pakistani Prime Minister Shehbaz Sharif wrote on social media that violations had been reported in several places, which he said "undermine the spirit" of the peace process. „I earnestly and sincerely urge all parties to exercise restraint and respect the ceasefire for two weeks, as agreed upon, so that diplomacy can take a lead role towards peaceful settlement of the conflict” — Shehbaz Sharif via The New York Times General Dan Caine, chairman of the Joint Chiefs of Staff, said U.S. military objectives in Iran had been met but described the ceasefire as a pause, with forces remaining ready to resume combat.

Vance calls it a fragile truce, warns Iran Speaking at an event in Budapest during a trip to Hungary, Vance described the situation as a "fragile truce" and said Trump was "impatient" to make progress toward ending the war. Vance said a deal was possible if Iran negotiated sincerely, but cautioned that while some parts of the Iranian system were approaching talks constructively, others were not. „He's impatient. He's impatient to make progress. He has told us to negotiate in good faith, and I think if they negotiate in good faith, we will be able to find a deal. But that's a big if, and ultimately, it's up to the Iranians how they negotiate” — JD Vance via Reuters Defense Secretary Pete Hegseth separately claimed a "decisive military victory" over Iran, stating that Tehran's missile program had been functionally destroyed. Caine said U.S. bombs had struck "more than 450 ballistic missile storage facilities" and 80 percent of Iran's missile production facilities during the war, though the New York Times noted those figures provide only a limited snapshot, as Iran continued to fire missiles in the region on the first day of the ceasefire. Iran's ambassador to the United Nations in Geneva, Ali Bahreini, said Tehran would approach the talks with caution given a large gap in trust. „We are not putting any trust in the other side. Our military forces are keeping their preparedness...but meanwhile, we will go for negotiations to see how serious the other side is” — Ali Bahreini via Reuters

Oil prices plunge 16% on ceasefire news Global oil markets reacted sharply to the ceasefire announcement, with Brent crude futures dropping as much as 16% to a low of $91.70 a barrel in early Asian trade on Wednesday, after closing at $109.27 on Tuesday. The selloff reflected relief that Trump's threats to destroy Iranian civilisation had been delayed and optimism that oil flows through the Strait of Hormuz might resume. However, analysts cautioned that physical oil markets in Asia would remain under stress for months even if the strait fully reopened, as disruptions were already working through supply chains. Saudi Aramco had raised its official selling price for its benchmark Arab Light grade for Asian refiners to a premium of $19.50 a barrel over the Oman/Dubai average for May-loading cargoes, up $17 a barrel from the April premium of $2.50, reflecting what Reuters described as increasing desperation among some Asian refiners to secure available crude. The United Nations said Secretary-General Antonio Guterres's personal envoy, Jean Arnault, had arrived in Iran as part of a regional tour aimed at backing "a comprehensive and durable resolution" to the conflict, with Arnault calling on all leaders to "choose the path of peaceful resolution and the protection of civilians." Bahreini also said the war would affect the future legal regime of the Strait of Hormuz, adding that "even the arrangements for the Strait of Hormuz is temporary."

Brent crude oil price shift on ceasefire news: Brent crude price (before: $109.27 per barrel (Tuesday close), after: $91.70 per barrel (Wednesday low, -16%)); Saudi Aramco Arab Light OSP for Asia (before: $2.50 premium over Oman/Dubai (April), after: $19.50 premium over Oman/Dubai (May))