Donald Trump has announced a two-week ceasefire between the US and Iran, bringing a conditional pause to their 39-day war in the Middle East.
The announcement was made an hour and a half before the American president’s deadline for Tehran to reopen the Strait of Hormuz, which expired at 8pm EST (1am BST).
Iran agreed to halt its blockade of oil and gas supplies through the shipping lane in return for a temporary end to US strikes on Iranian infrastructure and power plants.
The deal, brokered by Pakistan, averted mass strikes that Mr Trump had threatened to carry out hours before his deadline, having warned that “a civilisation will die tonight”.
Iran warned its “finger was on the trigger” if strikes restarted.
Markets rallied following the announcement, with oil prices plunging by nearly 17 per cent and stocks surging.
In a statement on his Truth Social platform, Mr Trump said: “Subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz, I agree to suspend the bombing and attack of Iran for a period of two weeks.
“This will be a double-sided CEASEFIRE!”
Israel has also agreed to halt strikes on Iran but said the ceasefire did not extend to their operations in Lebanon, despite an earlier statement by Pakistan and Iran stating otherwise.
The office of Benjamin Netanyahu, the Israeli prime minister, said the country supported the suspension of military action on Tehran but added: “The two-week ceasefire does not include Lebanon.”
Further negotiations to end the war will take place in Islamabad on Friday.
Mr Trump said US forces would be “hangin’ around” to help police the ceasefire and clear the build-up of traffic at the Strait, adding that “big money will be made” from the waterway’s reopening.
On Wednesday morning, he hailed a new “golden age of the Middle East”, declaring it was a “big day for world peace”.
Karoline Leavitt, the White House press secretary, added that the ceasefire was a “victory for the United States that President Trump and our incredible military made happen”.
Mr Trump later said he believed China had helped push Iran to the negotiating table.
Asked if Beijing was involved in encouraging the Islamic Republic to engage with America, he said: “I hear yes.”
However, Iran warned that it would restart strikes if the US were to break the temporary truce.
“It is emphasised that this does not signify the termination of the war,” a statement from Iran’s supreme national security council said.
“Our hands remain upon the trigger, and should the slightest error be committed by the enemy, it shall be met with full force.”
Earlier on Tuesday, Mr Trump had said “a whole civilisation will die tonight” unless a deal was agreed before his deadline, but declined to comment on whether he would follow through on his threat to destroy Iranian power plants and bridges.
“You’re going to have to see,” he said.
In a last-minute intervention, Shehbaz Sharif, the Pakistani prime minister, pleaded for both sides to stop fighting for two weeks with immediate effect.
He wrote on X: “To allow diplomacy to run its course, I earnestly request President Trump to extend the deadline for two weeks. Pakistan, in all sincerity, requests the Iranian brothers to open Strait of Hormuz for a corresponding period of two weeks as a goodwill gesture.”
Pakistan had been facilitating indirect negotiations after Iran refused to speak directly to the US following Mr Trump’s warning.
The White House responded to Mr Sharif’s plea by saying “a response will come”. Iran, which had shown no sign of accepting Mr Trump’s ultimatum, said it was “positively reviewing” the proposal, officials said before the ceasefire was announced.
Mr Sharif “warmly welcomed” the deal and said it hoped both countries would continue to engage in talks for a longer-term peace.
Following the agreement, Abbas Araghchi, the Iranian foreign minister, said Mr Trump had agreed to the “general framework” of a 10-point plan put forward by the Iranians.
“I hereby declare on behalf of Iran’s Supreme National Security Council: If attacks against Iran are halted, our Powerful Armed Forces will cease their defensive operations,” he wrote on X.
In his statement, Mr Araghchi also appeared to suggest that Iran would play a key role in controlling the Strait over the next two weeks.
As well as the reopening of the Strait of Hormuz, the 10-point plan includes an end to attacks in Iraq, Lebanon, Yemen and the rest of the Middle East, payment for reconstruction costs, the release of Iranian frozen assets, the lifting of sanctions against Tehran and agreement from the regime not to seek nuclear weapons.
Mr Trump insisted that most of the framework had been agreed upon and would lead to a longer-term deal.
“We have a 15-point transaction, of which most of those things have been agreed on. We’ll see what happens. We’ll see if it gets there,” he said, but did not elaborate on the nature of the possible additional five points.
There was no mention of uranium enrichment in the plan. Mr Trump had previously demanded that Tehran halted all nuclear enrichment within the country.
However, Iran said in a statement released alongside the 10 points that the plan would require “continued Iranian control over the Strait of Hormuz, acceptance of enrichment, lifting of all primary and secondary sanctions”.
Without elaborating, Mr Trump told AFP: “That will be perfectly taken care of, or I wouldn’t have settled.”