The US-Iran truce announced on Tuesday has paused hostilities for two weeks and reopened the Strait of Hormuz, a key shipping route for global oil supplies. The deal, confirmed in multiple international reports, was brokered with Pakistani mediation and is meant to create space for talks expected in Islamabad later this week.

US-Iran truce pauses escalation

US President Donald Trump said Washington would suspend attacks on Iran for two weeks, while Tehran would allow safe passage through the Strait of Hormuz. Iran’s foreign minister also confirmed the temporary reopening of the waterway, which handles about a fifth of the world’s oil traffic, according to the supplied article and current reporting by AP and other outlets.

The US-Iran truce came after last-minute diplomacy involving Pakistan. Pakistani Prime Minister Shehbaz Sharif said talks aimed at a more conclusive agreement are due to begin in Islamabad on Friday, although the White House has signalled that US participation was still being considered.

Strait of Hormuz and oil prices in focus

The reopening of the Strait of Hormuz had an immediate market impact. AP reported that oil prices fell sharply after the ceasefire announcement, with Brent and US crude both dropping as traders reacted to the return of shipping through the route. That matters well beyond the Middle East, because any prolonged disruption in the strait can raise fuel and transport costs globally.

The supplied article also notes that Trump has repeatedly cited Iran’s uranium enrichment as justification for pressure on Tehran. However, the International Atomic Energy Agency has long described its role as verification and monitoring, and public IAEA materials do not support simple claims that the agency has confirmed an active Iranian bomb-building programme.

Disputed terms still cloud talks

Not all sides describe the truce in the same way. Israel backed Trump’s pause in attacks on Iran, but said the ceasefire does not extend to Lebanon, contradicting Sharif’s broader description of the arrangement. Reports also differ on the exact content of Iran’s proposed 10-point framework, especially on uranium enrichment and sanctions relief.

That leaves the US-Iran truce as a fragile diplomatic opening rather than a final settlement. For now, the immediate test will be whether talks in Pakistan can turn a temporary pause into a broader agreement.