Washington, April 8, 2026 (Reuters): US President Donald Trump has agreed to a two-week ceasefire with Iran, less than two hours before his deadline for Tehran to reopen the Strait of Hormuz or face devastating attacks on its civilian infrastructure in which he had threatened a ‘whole civilization will die’.
Meanwhile, Iranians celebrated by taking to the streets in Tehran and other cities declaring a victory.
The announcement about the ceasefire was made by Prime Minister Shehbaz Sharif in a post on X early this morning.
Iran said talks between the U.S. and Iran would begin on Friday in Islamabad, Pakistan, whose prime minister helped mediate the ceasefire. The U.S. has not yet confirmed in-person talks but says they are being discussed.
Trump said Iran had presented a 10-point proposal that was a “workable basis” for negotiations and he expected an agreement to be “finalized and consummated” during the two-week window.
Trump said the last-minute deal was subject to Iran’s agreement to pause its blockade of oil and gas supplies through the strait. Iran’s Foreign Minister, Abbas Araqchi, said in a statement Tehran would stop counter-attacks and provide safe passage through the strait.
Iranian state TV said Trump had accepted Iran’s terms for ending the war, describing it as a “humiliating retreat” by the U.S. president.
In response, White House press secretary Karoline Leavitt said, “The truth is that President Trump and our powerful military got Iran to agree to reopening the Strait of Hormuz, and negotiations will continue.”
U.S. stock futures were rising in the minutes following Trump’s message. Oil prices fell sharply, with U.S. crude futures dropping more than 17% to just over $92 a barrel.
However, a few minutes after Trump’s announcement, the Israeli military said it identified missiles launched from Iran towards Israel.
Gulf countries including Kuwait, Bahrain, Saudi Arabia and the United Arab Emirates also issued near-simultaneous alerts and activated air defenses.
Trump’s ceasefire announcement represented an abrupt turnaround from earlier in the day, when he issued an extraordinary warning that “a whole civilization will die tonight” if his demands were not met.
Oil Prices Drop
Meanwhile, soon after the ceasefire announcement, oil fell below $100 per barrel on Wednesday after Trump’s announcement of a ceasefire.
Brent fell $14.84, or 13.6%, to $94.43 a barrel and WTI slid $16.13, or 14.3%, to $96.82 a barrel as of 0023 GMT.
Trump’s turnaround came shortly before his deadline for Iran to open the Strait of Hormuz, where 20% of the world’s oil trabsit or face widespread attacks on its civilian infrastructure.
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