Oil prices dropped sharply, and US stock futures rose after President Donald Trump said he would delay his threat of devastating attacks as the US and Iran agreed to a ceasefire for two weeks, provided the Iranians allow ships to pass through the Strait of Hormuz.
Futures for US crude oil fell 18% to about USD 92.60, while Brent crude oil futures declined around 6% to USD 103.40. Despite the drop, both prices remain significantly higher than their levels at the start of the war. Meanwhile, futures for the S&P 500 climbed 2.4%.
Trump also said that Iran has put forward a "workable" 10-point peace plan that could help end the war launched by the US and Israel on February 28.
US-Iran announce ceasefire
The United States has agreed to a 2-week ceasefire with Iran, proposed by Pakistan. President Donald Trump announced just 90 minutes before his deadline for a major military strike on the West Asian nation was set to expire.
Trump made the announcement on Truth Social on Tuesday evening US time, as Democrats criticised him and called for his removal over threats targeting Iranian civilisation.
“Following conversations with Prime Minister Shehbaz Sharif and Field Marshal Asim Munir, who requested that I halt the destructive force being prepared for tonight against Iran, contingent on the Islamic Republic agreeing to the complete, immediate, and safe reopening of the Strait of Hormuz,” Trump said in his post.
“I have agreed to suspend the bombing and attack on Iran for a period of 2 weeks,” he added, describing it as a mutual ceasefire.
In Tehran, Iran’s Supreme National Security Council confirmed it had accepted the 2 week ceasefire and would begin negotiations with the US in Islamabad starting Friday.
Meanwhile, in Islamabad, Prime Minister Sharif invited US and Iranian delegations to meet on Friday, April 10, to work towards a final agreement to resolve all disputes.
White House press secretary Karoline Leavitt said discussions about in person talks are ongoing, but nothing will be final until formally announced by the President or the White House.
Trump also stated that the US has received a 10-point proposal from Iran, which he described as a workable basis for negotiations.
