A conditional two-week ceasefire between the United States and Iran has been announced by former US President Donald Trump, raising cautious hopes for de-escalation in the Gulf region.
Under the proposed arrangement, Washington has indicated it will halt military actions if Tehran allows the free flow of shipping through the strategic Strait of Hormuz a vital global energy corridor. Iranian Foreign Minister Abbas Araghchi confirmed that Iran would agree to end hostilities provided all attacks against the country cease, outlining a broader 10-point plan that reportedly includes compensation measures.
Despite the breakthrough, tensions remain high. Israel carried out fresh airstrikes in southern Lebanon on Wednesday, asserting that the ceasefire does not extend to Lebanese territory—contradicting earlier remarks by Pakistan’s leadership, which has been mediating the talks.
Pakistan has invited both parties to Islamabad for further negotiations on Friday, while UK Prime Minister Keir Starmer is set to visit Gulf states to discuss support for stabilizing the agreement.
Saudi Arabia welcomed the ceasefire, backing Pakistan’s mediation efforts and stressing the importance of keeping the Strait of Hormuz open without restrictions. Gulf nations including Saudi Arabia, United Arab Emirates, Qatar, Bahrain, Kuwait, and Oman have recently faced repeated drone and missile attacks, heightening regional concerns.
Markets reacted positively to the development, with oil prices falling sharply and global stock markets rebounding. However, analysts warn that uncertainty persists over the durability of the ceasefire and the future of maritime security in the Strait of Hormuz.
Experts also caution that the conflict may leave lasting economic damage, particularly to energy infrastructure in the Gulf, with full recovery likely to take years despite the current pause in hostilities.
