Iran has agreed to a two-week ceasefire and will begin negotiations with the United States on Friday in Islamabad, Pakistan. The decision follows US President Donald Trump’s announcement that Washington would pause attacks if Tehran fully reopens the Strait of Hormuz.
Iran’s foreign minister stated that safe passage through the strategic waterway would be allowed during this period, coordinated with its armed forces.
Australia’s Prime Minister Anthony Albanese welcomed the ceasefire, calling for it to hold and lead to a broader resolution. He reiterated Australia’s long-standing position urging de-escalation, warning that prolonged conflict threatens global economic stability. Albanese also acknowledged the role of mediators from Pakistan, Egypt, Turkey, and Saudi Arabia in facilitating the truce.
Meanwhile, Israel clarified that the ceasefire does not extend to Lebanon. Prime Minister Benjamin Netanyahu’s office said Israel supports the temporary halt in strikes against Iran but will continue operations related to Hezbollah in Lebanon, citing security concerns. Israeli forces have carried out attacks in southern Lebanon, where the Iran-backed group has been active.
Financial markets reacted positively to the ceasefire. Oil prices dropped sharply, and global stock markets rallied on expectations that energy supplies through the Strait of Hormuz would stabilize. In India, markets are set to open significantly higher, tracking global gains and falling crude prices, with investor attention also on the Reserve Bank of India’s policy decision.
US President Donald Trump described the agreement as a “total and complete victory,” while Iran signaled it had secured key concessions, including recognition of its nuclear enrichment rights in its own version of the deal.
Pakistan has invited both countries to Islamabad for talks aimed at reaching a long-term agreement. At the same time, Iran-backed groups in Iraq announced a temporary suspension of operations in line with the ceasefire.
Despite the agreement, tensions remain. Missile alerts were reported in parts of the Middle East shortly after the announcement, and conflicting statements have emerged regarding whether the ceasefire includes regions like Lebanon.
The proposed framework reportedly includes a 10-point plan covering issues such as sanctions relief, military withdrawal, and control over the Strait of Hormuz. However, uncertainties persist, and both sides have warned that hostilities could resume if negotiations fail.
