US and Iran Agree to Two-Week Ceasefire; Iran Reopens Hormuz; Oil Collapses 16%; Islamabad Talks Set for April 10

Just before Trump's 8:00 p.m. ET deadline expired on April 7, the United States and Iran reached a two-week ceasefire agreement brokered by Pakistan. Iran's Supreme National Security Council accepted the deal and agreed to allow safe passage of maritime traffic through the Strait of Hormuz — the first resumption of Hormuz shipping in approximately six weeks. Trump announced he would "suspend the bombing and attack of Iran for a period of two weeks," accepting Iran's 10-point proposal as a "workable basis" for negotiations. Oil prices collapsed on the news: West Texas Intermediate crude fell 16.41% to settle at $94.41/barrel and Brent fell to approximately $103/barrel, reversing much of the war-era oil premium. Pakistani Prime Minister Shehbaz Sharif formally invited US and Iranian delegations to Islamabad for peace talks on April 10, with Vice President Vance expected to lead the US delegation — the first direct US-Iranian engagement since the conflict began on February 28. Pakistan's mediation role was hailed by Bloomberg as elevating it to central stage in global geopolitics. However, the ceasefire was immediately complicated: Israel launched devastating strikes across Lebanon, including Beirut, killing at least 254 people. Trump and Netanyahu said Lebanon was explicitly not included in the ceasefire terms.