US President Donald Trump has said he will “suspend the bombing and attack of Iran” under a two-week ceasefire deal, as global oil prices fell sharply following the announcement.
Before the ceasefire agreement, Trump had warned of his intention to bomb energy infrastructure and bridges in Iran, vowing that “a whole civilisation will die tonight” unless his demands were met – a threat which drew widespread condemnation.
In a post on Truth Social on Wednesday morning, Trump confirmed the agreement was conditional on Iran agreeing to the “COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz”, a key global shipping route for oil supplies.
“I agree to suspend the bombing and attack of Iran for a period of two weeks,” Trump said.
“…subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz.”
He described the development in broader terms, signalling expectations of economic recovery and stability in the region.
Iran’s position was outlined by Foreign Minister Abbas Araghchi, who said Tehran would agree to a ceasefire if attacks against the country were halted.
He added that safe passage through the Strait of Hormuz “will be possible” under those conditions.
The agreement prompted an immediate reaction in energy markets, with benchmark Brent crude falling by around 13% to $94.80 per barrel, while US-traded oil dropped by more than 15%.
The decline represents a shift after weeks of rising prices linked to disruption in Middle Eastern supply routes, although costs remain above pre-conflict levels of roughly $70 per barrel.
Stock markets also moved higher following the announcement, with gains recorded across Asia-Pacific indices. Japan’s Nikkei 225 rose by 5%, South Korea’s Kospi increased by nearly 6%, while Hong Kong’s Hang Seng and Australia’s ASX 200 also posted notable increases.
The Strait of Hormuz, through which a significant share of the world’s oil supply passes, had been at the centre of the disruption after threats to shipping in the area raised concerns over supply shortages.
The ceasefire deal is expected to ease those pressures, with the reopening of the route allowing a more stable flow of oil onto global markets and reducing immediate fears of further supply shocks.
Energy prices had risen as uncertainty around access to the strait intensified, affecting fuel costs internationally.
The two-week agreement provides a window for further negotiations between the United States and Iran, while also offering short-term relief to global energy markets following a period of volatility.