US and Iran Agree to Two-Week Ceasefire to Reopen Vital Strait of Hormuz

The United States and Iran agreed to a two-week ceasefire on April 8, 2026, pausing a war that has claimed more than 5,000 lives across nearly a dozen countries, with Iran committing to allow shipping through the Strait of Hormuz as a condition of the truce. United States President Donald Trump declared the deal a "total and complete victory," while the agreement was brokered by the Pakistani government following a tense 12-hour countdown during which Trump had threatened to destroy Iran's "whole civilization." Iranian Supreme Leader Mojtaba Khamenei was celebrated in Tehran's streets after the announcement, with Iranians carrying his portrait, though reaction inside the country was described as mixed. The ceasefire came after six weeks of fighting that began on February 28, 2026, when the United States and Israel launched coordinated strikes on Iran in what was designated Operation Epic Fury.

„Total and complete victory. 100 per cent. No question about it.” — Donald Trump via AFP

Pakistan brokered the deal as Trump's ultimatum ticked down The agreement was reached through mediation by the Pakistani government, with Prime Minister Shehbaz Sharif credited with facilitating the breakthrough. According to the New York Times, Trump lifted his threat at 6:32 p.m. Eastern time, roughly 10 hours and 26 minutes after posting a warning on social media that read "A whole civilization will die tonight." Trump said on Truth Social that Iran "wants it to happen, they've had enough," and added that the United States was "very far along" with a peace agreement after receiving a 10-point proposal from Tehran. Iran's Foreign Minister Abbas Araghchi confirmed the deal but introduced a significant qualification: safe passage through the Strait of Hormuz would be possible "via co-ordination with Iran's armed forces and with due consideration of technical limitations," meaning Tehran retains effective control of the waterway. The Irish Times reported that Iran and Oman would be permitted to charge ships for passage during the two-week truce period. Analysts noted that the war began with US demands for the destruction of Iran's nuclear programme, its ballistic missile capability, and regime change in Tehran — none of which were achieved. Richard Fontaine, chief executive of the Center for a New American Security, was quoted by the New York Times as saying that "Iran remains in control of the Strait, which was not the case before the war."

„For a period of two weeks, safe passage through the Strait of Hormuz will be possible via co-ordination with Iran's armed forces and with due consideration of technical limitations.” — Abbas Araghchi via The Irish Times

The US-Israel war on Iran, designated Operation Epic Fury, began on February 28, 2026. The opening strikes killed Ali Khamenei, Iran's longtime Supreme Leader, who was succeeded by his son Mojtaba Khamenei on March 8, 2026. The Strait of Hormuz, a 21-mile-wide channel between Iran and Oman, carries approximately one-fifth of the world's liquefied natural gas and crude oil. Iran's ability to restrict or threaten shipping through the strait has long been regarded as one of its primary strategic deterrents against military action by the United States, Israel, and Gulf states.

Missiles flew over Gulf states and Lebanon within hours of the deal Despite the ceasefire announcement, missile alerts sounded in the United Arab Emirates and Bahrain within hours of the agreement being declared, with the UAE stating its air defense systems were "engaging with missile and drone threats from Iran." Israel's military reported detecting an incoming barrage of Iranian missiles more than an hour after Trump's announcement, with explosions from intercepted missiles heard in Tel Aviv, and Israeli media reported that its forces struck back at launch sites in Iran. Kuwait, Bahrain, Saudi Arabia, and the UAE issued near-simultaneous air defense alerts. In Lebanon, the state news agency NNA reported continued Israeli strikes across southern Lebanon, including an air strike on a building near a hospital that killed four people. Israeli Prime Minister Benjamin Netanyahu's office stated that Israel supported the suspension of strikes on Iran but insisted the ceasefire did not apply to Lebanon — a position that directly contradicted statements from Pakistan's Sharif, who said the agreement included a cessation of Israel's campaign in Lebanon. A unnamed US official told the Associated Press that American offensive military strikes against Iran had stopped, while another official said defensive actions were continuing. Iraq's Islamic Resistance announced it would suspend operations across the region for two weeks.

Oil fell 14% but markets warn supply relief will take weeks Oil prices dropped sharply on news of the ceasefire and the reopening of the Strait of Hormuz, with benchmark Brent crude falling roughly 14% to $94 per barrel. That price remains well above pre-war levels of around $72 per barrel and the 2025 average of $69 per barrel, as analysts cautioned that supply disruptions cannot be reversed quickly. Powered-down oil and gas producers in the Middle East will require time to restore output, and refineries that have been without crude will need additional time to process and ship derivatives such as aviation fuel. Asian stock markets responded with sharp gains, with South Korea's Kospi rising nearly 7% and Japan's Nikkei gaining 5.5%. Both economies had been heavily reliant on Middle Eastern energy imports and had experienced panic buying amid fears of shortages. On the political front, US Senate Democratic leader Chuck Schumer said he was "glad Trump backed off," while Republican Senator Rick Scott called the ceasefire "a strong first step." The New York Times noted that Trump's political base showed signs of fracture, with some former supporters accusing the president and Vice President JD Vance of breaking promises not to involve the United States in unwinnable Middle Eastern wars.

„I'm glad Trump backed off and is desperately searching for any sort of exit ramp from his ridiculous bluster.” — Chuck Schumer via The Irish Times

Kospi (South Korea): 7, Nikkei (Japan): 5.5

Brent crude oil price: Pre-war price (2025 average) (before: $69 per barrel, after: —); Price before Operation Epic Fury (before: $72 per barrel, after: —); Price after ceasefire announcement (before: $109+ per barrel (wartime peak implied), after: $94 per barrel)