In a dramatic de-escalation of the US-Israel-Iran conflict, the United States and Iran have reached a tentative two-week ceasefire agreement, with both sides committing to reopen the critical Strait of Hormuz for shipping traffic. President Donald Trump announced the breakthrough late yesterday, crediting his administration's decisive diplomacy for averting what he called a potential "catastrophe" in the Middle East.

The truce halts all military actions between US and Iranian forces for 14 days, during which Iran has pledged safe passage through the Strait of Hormuz – a chokepoint handling nearly 20% of global oil flows. Pakistani mediators facilitated the talks, bridging gaps after Iran's Supreme National Security Council outlined a 10-point peace initiative that includes demands for asset releases and no further pursuit of its nuclear program.

White House officials emphasized that US naval assets remain positioned nearby as a precaution, while Iranian state media confirmed coordination with Oman for reconstruction efforts and possible transit fees to repair conflict damage. Oil prices, which had spiked over 15% in recent days due to blockade fears, showed early signs of stabilization in overnight trading.

Tensions boiled over when Iranian forces moved to restrict the Strait following Israeli airstrikes and US warnings of retaliation. Trump had set a firm deadline for action, but pulled back after backchannel negotiations yielded results – a move reminiscent of his 2019 decision to call off strikes on Iran at the 11th hour. The waterway's brief closure disrupted tankers from Saudi Arabia, UAE, and others, sending ripples through energy markets worldwide. For consumers, this meant higher fuel costs; analysts estimate every day of blockage adds $1-2 per barrel to crude benchmarks.

World leaders swiftly welcomed the pause. European diplomats called it a "vital first step," while India's external affairs ministry noted relief for its oil imports. Friday's follow-up talks in Islamabad aim to extend the truce, with Trump hinting at US technical aid for clearing Hormuz backlogs toward a broader "Middle East Golden Age". Israel, however, maintains its operations against Iranian proxies, casting doubt on long-term calm. As ships prepare to test the reopened route, all eyes remain on whether this fragile accord holds or crumbles under pressure.