On Wednesday (8 April), the White House confirmed that the United States (US) and Iran have agreed to a two-week ceasefire, with Iran pledging to open the Strait of Hormuz for passage during this period, provided the US and its allies halt hostilities.
The ceasefire agreement, facilitated by Pakistani mediation, was corroborated by Iran’s Foreign Minister via X (formerly Twitter).
At the same time, Pakistani Prime Minister Shehbaz Sharif announced that the ceasefire would apply globally, including in Lebanon, and would take effect immediately.
He also invited both parties to Islamabad for peace talks starting Friday (10 April).
The agreement promises safe passage through the vital Strait of Hormuz for two weeks.
According to Axios, analysts believe this might mean falling gas prices as quickly as Friday. In fact, crude oil prices have reportedly already taken a nosedive.
Despite the optimistic forecasts, experts warn that prices are unlikely to return to pre-conflict levels due to significant damage to regional infrastructure.
Source: USNI News
Iran reportedly submitted a 10-point peace plan, which US President Donald Trump described as “a workable basis on which to negotiate”.
Although details remain under wraps, it is believed the proposal includes demands such as the lifting of all sanctions, the release of frozen Iranian assets, and the withdrawal of US troops from the region.
Additionally, the plan includes a $2 million (S$2.55 million) fee per ship passing through the Strait of Hormuz, a toll that President Trump has previously suggested the US may implement itself.
The ceasefire announcement follows heightened tensions when US President Trump escalated his rhetoric on 7 April, threatening the annihilation of a “whole civilization”.
“I don’t want that to happen, but it probably will,” Trump wrote on his social media platform.
At home, Trump is facing mounting calls for impeachment, as his support from his core base of voters appears to wane.
A Democratic member of the House of Representatives has already filed articles of impeachment against Trump.
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Featured image adapted from @araghchi on X and USNI News.