The United States and Iran have agreed to a two-week ceasefire in a dramatic last-minute breakthrough, just hours before a deadline set by U.S. President Donald Trump linked to the reopening of the Strait of Hormuz.

The agreement, announced late Tuesday, followed intense mediation by Pakistan’s Prime Minister Shehbaz Sharif and Army Chief Field Marshal Asim Munir. The deal is conditional on Iran allowing the “complete, immediate, and safe” reopening of the strategic waterway, which handles nearly one-fifth of global oil shipments.

Trump described the agreement as a “double-sided ceasefire,” claiming that U.S. military objectives had already been achieved and that both sides were moving toward a broader peace framework. He also indicated that Iran’s proposed 10-point plan would serve as the basis for upcoming negotiations, expressing optimism about reaching a long-term agreement.

Iran signaled conditional acceptance of the ceasefire. Foreign Minister Abbas Araqchi said Tehran would halt retaliatory attacks and ensure safe passage through the strait if strikes against Iran cease. However, Iran’s Supreme National Security Council portrayed the development as a strategic victory, claiming Washington had effectively accepted its terms.

Despite the announcement, uncertainty persists over how quickly the ceasefire will take full effect. Reports indicated that missile launches and air defense activations continued in parts of the region, including Israel and several Gulf countries, shortly after the deal was revealed.

Israel has supported the temporary halt in U.S.-Iran hostilities but clarified that the ceasefire does not extend to Lebanon, where its military operations against Hezbollah are ongoing. This exclusion has raised concerns about whether the truce can hold across the broader conflict landscape.

The war, now entering its sixth week, has resulted in over 5,000 deaths across multiple countries, including significant civilian casualties in Iran. It has also triggered global economic concerns, particularly due to disruptions in oil flows through the Strait of Hormuz.

Markets responded positively to the ceasefire news, with oil prices falling and global equities rising on hopes of restored stability. However, analysts caution that the pause may be a “trust-building exercise,” with both sides testing each other’s intentions during the two-week window.

Global leaders have welcomed the ceasefire, emphasizing the urgent need to prevent further escalation. Whether this temporary halt evolves into a lasting peace agreement will depend on the outcome of negotiations expected to take place in the coming days.