The United States and Iran agreed on Wednesday to a two week ceasefire, easing fears of an immediate escalation in the Middle East after President Donald Trump said he would pause planned U.S. strikes if Tehran reopened the Strait of Hormuz.

The announcement came just hours before Trump’s 8 p.m. deadline and followed renewed diplomatic efforts led in part by Pakistan. Trump described the move as a mutual ceasefire, saying it would create space for negotiators to finalize what he called a nearly complete long term peace arrangement.

Under the agreement, Iran is expected to begin talks with the United States in Islamabad. While the ceasefire has raised hopes for a temporary reduction in tensions, Iranian officials made clear that the conflict is not fully resolved and warned that any further provocation would be met with force.

A key part of the proposed arrangement involves reopening the Strait of Hormuz, one of the world’s most important energy shipping routes. According to a regional official cited by The Associated Press, the two week ceasefire plan would also allow Iran and Oman to charge transit fees on ships passing through the strait. Iran is expected to use the revenue for reconstruction, while it remains unclear how Oman would use its share.

The Strait of Hormuz lies within the territorial waters of both Iran and Oman, but the passage has long been treated by the international community as an open waterway where no tolls were charged. If implemented, the new fee system would mark a major shift in how one of the world’s most strategic maritime corridors operates.

At the White House, press secretary Karoline Leavitt said Trump’s comments on the Iranian proposal were clear and that negotiations would continue. She said the president viewed the plan as a workable basis for further talks and credited U.S. military pressure for pushing Iran to agree to reopen the strait.

The ceasefire announcement helped calm immediate concerns over the threat of major military action, but uncertainty remains high. Tehran’s warning that the conflict is not over suggests the coming two weeks will be critical in determining whether the pause leads to a lasting diplomatic breakthrough or only a temporary halt in hostilities.

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