US and Iran Agree on Two-Week Ceasefire; Strait of Hormuz Reopens Under Conditions

The US and Iran agreed to a two-week ceasefire after 40 days of fighting.

“After 40 days of fighting, the United States and Iran agreed to a two-week ceasefire on Wednesday morning, with negotiations expected to begin on Friday in Pakistan’s capital, Islamabad”

Al Jazeera

Iran's 10-point proposal included allowing shipping to resume through the Strait of Hormuz.

Al Jazeera

The Strait handles about 20% of the world's oil and gas during peacetime.

Iran said safe passage would be possible via coordination with its armed forces.

Oil prices plunged more than 15% after the announcement.

Brent crude fell as much as 18% after the announcement.

European natural gas futures dropped up to 20%.

CNN

The Dow Jones surged more than 1,000 points.

More than 800 vessels remained stranded near the Strait.

Analysts warned the energy crisis is far from over.

Iran's reopening of the Strait requires coordination with its military.

“The fragile overnight ceasefire between the United States and Iran has opened a window for global fuel supplies to partially resume — but uncertainty surrounding terms of the agreement has left shippers and EU policymakers in limbo”

EUobserver

The ceasefire's short duration means uncertainty remains high.

Syria reopened its airspace following the ceasefire.

Economists cautioned that impacts may persist throughout 2026.