US and Iran Agree to Two-Week Ceasefire Amid Strait of Hormuz Tensions

The United States and Iran have agreed to a two-week ceasefire, effective immediately, following mediation efforts led by Pakistan. As part of the agreement, Iran has committed to reopening the Strait of Hormuz, a vital maritime corridor through which approximately 20% of the world's oil supply transits.

The ceasefire comes after nearly 40 days of hostilities that have significantly impacted global energy markets and regional stability. Analysts note that while Iran's military infrastructure has suffered considerable damage, the nation has gained strategic leverage by asserting control over the Strait of Hormuz.

In response to the ceasefire announcement, oil prices have experienced a sharp decline, with Brent crude futures falling approximately 13% to around $95 per barrel. This marks the steepest single-day decline since the 1991 Gulf War, excluding COVID-related events.

Despite the temporary halt in hostilities, concerns remain regarding Iran's proposal to collect tolls from ships passing through the Strait of Hormuz. Such a move would violate established international maritime law, specifically the United Nations Convention on the Law of the Sea, which guarantees freedom of passage through vital straits.

The international community has welcomed the ceasefire, urging all parties to commit fully to the truce and work towards a lasting peace in the Middle East.