Trump Delays Iran Strikes as Ceasefire Momentum Builds and Oil Markets React

Donald Trump announced a two-week suspension of planned military strikes against Iran, signaling a potential turning point in the ongoing conflict as diplomatic efforts gain traction.

The decision follows discussions with Shehbaz Sharif and Asim Munir, with the pause contingent on Iran reopening the critical Strait of Hormuz. The strategic channel carries roughly 20% of global oil supply, making it central to both economic stability and geopolitical tensions.

Tehran signaled openness to a conditional ceasefire, with Foreign Minister Seyed Abbas Araghchi stating that Iran would halt defensive operations if attacks ceased. He also confirmed that safe passage through Hormuz could resume under agreed conditions.

Pakistan has stepped in as a key mediator, proposing peace talks in Islamabad, while reports indicate that China also encouraged de-escalation. A 10-point framework reportedly forms the basis for negotiations, with both Washington and Tehran showing signs of alignment on major issues.

Markets reacted immediately to the geopolitical shift. S&P 500 futures surged over 2% in after-hours trading, while oil prices dropped sharply, with crude sliding nearly 13% as fears over prolonged supply disruption eased.

Despite the temporary pause, tensions remain high. The conflict has entered its sixth week, with continued exchanges involving Iran, Israel, and regional actors. However, the two-week window may prove critical in determining whether a lasting agreement can be reached.