Trump announces conditional ceasefire with Iran as oil prices plunge

Donald Trump says that following discussions with the leadership of Pakistan, there will be a ceasefire between the United States and Iran—on condition that Iran allows traffic through the Strait of Hormuz.

Trump said he had agreed to suspend the bombing and attack of Iran for a period of two weeks.

“This will be a double-sided ceasefire!” reports the BBC.

He added that the two-week ceasefire would be upheld “subject to the Islamic Republic of Iran agreeing to the complete, immediate, and safe opening of the Strait of Hormuz.”

Despite the ceasefire announcement, strikes on US Gulf allies may still be ongoing.

The United Arab Emirates Ministry of Defence said in a statement that the country is “currently dealing with missile attacks and incoming drones from Iran,” adding that air defence systems were intercepting incoming missiles.

In Saudi Arabia, emergency alerts have been activated across the eastern region, including Riyadh, warning residents of “a potential danger” and urging them to seek shelter.

Global benchmark Brent crude fell by 13.6 percent to $94.50 (£70.58) per barrel, while US-traded oil dropped by about 14.3 percent to $96.80. Both benchmarks were trading well above $100 a barrel on Tuesday.

Ichiro Kutani of Japan’s Institute of Energy Economics said the conditional ceasefire announcement likely surprised traders, explaining the sharp fall in prices. However, he noted that prices are unlikely to return to pre-war levels of around $70 a barrel due to extensive regional damage.

The Nikkei 225 surged by 4 percent in early Asian trading, while Australia’s ASX 200 gained nearly 3 percent as markets responded to the easing geopolitical tension.

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