Trump Announces Two-Week Ceasefire With Iran, Contingent on Strait of Hormuz Opening

U.S. crude oil fell approximately 8% to around $103 per barrel after President Trump announced a two-week "double-sided ceasefire" with Iran, contingent on the complete and immediate reopening of the Strait of Hormuz. The announcement came just ahead of Trump's firm 8 p.m. ET deadline on Tuesday, April 7, marking a sudden reversal in a conflict that the United States and Israel launched on February 28, 2026.

Trump posted the announcement on Truth Social, writing that the U.S. had received "a 10-point proposal from Iran" and considered it "a workable basis on which to negotiate." Iran's Supreme National Security Council formally accepted the two-week framework, with Foreign Minister Abbas Araghchi announcing: "If attacks against Iran are halted, our Powerful Armed Forces will cease their defensive operations. For a period of two weeks, safe passage through the Strait of Hormuz will be possible via coordination with Iran's Armed Forces and with due consideration of technical limitations."

Iran delivered its 10-point proposal on Monday, April 6, through Pakistan, which served as the sole communication channel between Washington and Tehran throughout the conflict. The proposal calls for a permanent end to the war, full lifting of U.S. and international sanctions, withdrawal of U.S. combat forces from all bases and deployment points in the region, and a reconstruction framework for areas damaged by American and Israeli strikes. Among the most commercially significant elements: a proposed $2 million per-ship transit fee through the strait, split with Oman, with Iran's share directed toward rebuilding war-damaged infrastructure rather than demanding direct war reparations.

The ceasefire nearly collapsed before it began. Iran had previously rejected a U.S.-backed 15-point proposal, calling it "extremely maximalist and unreasonable," and Trump himself had initially dismissed Iran's counter-proposal as "not good enough." Pakistan's Field Marshal Asim Munir spent the night before the announcement in continuous contact with U.S. Vice President JD Vance, special envoy Steve Witkoff, and Araghchi, ultimately bridging the gap. Pakistani Prime Minister Shehbaz Sharif also played a central role, drawing public gratitude from Araghchi, who credited both leaders for "tireless efforts to end the war in the region."

White House Press Secretary Karoline Leavitt confirmed the agreement, stating: "President Trump and our powerful military got Iran to agree to reopening the Strait of Hormuz, and negotiations will continue." Israel also agreed to the temporary ceasefire, subject to Hormuz reopening, according to a White House official briefing NBC News.

Not all Iranian voices are aligned. Iran's IRGC Navy declared the strait "will never return to its former state," particularly for the U.S. and Israel, signaling that Tehran's military establishment views any new arrangements as permanent rather than provisional. The proposed transit fee structure reinforces that posture; analysts note it would institutionalize Iranian control over the waterway long after any ceasefire expires.

The two-week window is intended to finalize a comprehensive agreement. Trump noted that "almost all of the various points of past contention have been agreed to between the United States and Iran," with the remaining period meant to allow the deal to be "finalized and consummated." The talks represent a potential turning point after 47 years of U.S.-Iran hostilities dating to the 1979 Islamic Revolution, though the IRGC's harder line suggests the most consequential disputes remain unresolved.