US-Israel-Iran agree to two-week ceasefire after 40 days of war, casualties exceed 2,000
The US has announced a ceasefire agreement between Israel, the US, and Iran, ending 40 days of escalating war in the Middle East. The deal follows Iran's submission of a 10-point proposal to the US via Pakistan, responding to a previous 15-point US plan. The two-week truce, which started after US President Donald Trump issued ultimatums threatening severe action against Iran, will be followed by negotiations over control of the Strait of Hormuz. Iran's ISNA news agency reports parliament speaker Mohammad Qalibaf will lead talks in Islamabad with US Vice President JD Vance.
The conflict has caused significant human and economic damage. Iranian authorities report at least 2,076 killed and over 26,500 wounded since the war began. Across Iran, Lebanon, Israel, and the region, casualties number in the thousands. The violence disrupted global oil markets, with prices fluctuating wildly for six weeks. After the ceasefire news, US crude futures fell 16.5% to $94 a barrel and the dollar dipped about 1% against the euro and pound, while S&P 500 futures rose over 2%.
World leaders have broadly welcomed the pause in fighting. EU officials stressed the urgent need to reopen the Strait of Hormuz for shipping. Spain's Prime Minister Pedro Sanchez criticized the war's origins, calling the ceasefire a "momentary relief" that shouldn't overshadow the destruction. Pope Leo and French President Emmanuel Macron also expressed support, with Macron urging Lebanon's inclusion. However, Israel's Prime Minister Benjamin Netanyahu stated the ceasefire does not apply to Lebanon, contradicting Pakistan's earlier comment. His office issued evacuation warnings for Southern Lebanon, particularly Tyre, signalling ongoing operations there. Hezbollah has suspended attacks on northern Israel pending a formal statement.
For global markets and energy security, the key question is whether this temporary pause can transform into a lasting diplomatic solution that keeps critical shipping lanes open and prevents further humanitarian catastrophe.