United States (US) President, Donald Trump has declared a two-week ceasefire with Iran after Tehran agreed to reopen the Strait of Hormuz under a Pakistan-brokered peace plan.
Trump revealed the breakthrough late last night on his Truth Social platform, saying he would suspend military strikes after receiving assurances from Pakistani Prime Minister Shehbaz Sharif that Iran would comply with the deal.
Trump said Iran had submitted a ten-point proposal aimed at ending the war, describing it as a "workable basis" for long-term peace.
He added that Washington had already "met and exceeded all military objectives" and was now close to finalising a permanent settlement.
Trump said:
"Based on conversations with Prime Minister Shehbaz Sharif and Field Marshal Asim Munir, of Pakistan, and wherein they requested that I hold off the destructive force being sent tonight to Iran, and 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.
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"This will be a double sided CEASEFIRE! The reason for doing so is that we are already met and exceeded all Military objectives, and are very far along with a definitive Agreement concerning Longterm PEACE with Iran, and PEACE in the Middle East. We received a 10 point proposal from Iran, and believe it is a workable basis on which to negotiate.
"Almost all of the various points of past contention have been agreed to between the United States and Iran, but a two week period will allow the Agreement to be finalized and consummated.
"On behalf of the United States of America, as President, and also representing the Countries of the Middle East, it is an Honor to have this Longterm problem close to resolution. Thank you for your attention to this matter! President DONALD J. TRUMP."
The announcement came hours after Trump had threatened to destroy Iran’s "entire civilization" if it refused to reopen the Strait, sparking fears of escalation.
In a later post, the President hailed "a big day for world peace" and claimed Iran had "had enough" of the conflict, promising "lots of positive action" in the weeks ahead.
Israel has also agreed to pause strikes for the same two-week period, according to a senior White House official, with the ceasefire taking effect once the Strait resumes operations.
According to the New York Times, Iran accepted the deal following last-minute pressure from Beijing to ease the economic fallout of the war.
Reports said markets reacted sharply to the news, with US crude prices tumbling.
West Texas Intermediate contracts dropped more than 15 per cent to $95 a barrel, having earlier surged to $116 on Tuesday.