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

lite News Desk 2 min read

At a glance

  • The US and Iran reached a two-week ceasefire on April 7, 2026
  • The agreement requires Iran to reopen the Strait of Hormuz
  • Asian stock markets rose following the ceasefire announcement

The United States and Iran established a two-week ceasefire on April 7, 2026, with the agreement tied to Iran reopening the Strait of Hormuz for international passage.

The arrangement was finalized less than two hours before a deadline set by US President Trump, which had been scheduled for 8 p.m. Eastern Time on April 7, 2026. The ceasefire was proposed by Pakistan under the Islamabad Accord framework, which had been introduced on April 5, 2026.

According to the agreement, Iran’s Supreme National Security Council accepted the terms and stated that discussions with the United States would begin in Pakistan. The reopening of the Strait of Hormuz was a key condition for the ceasefire to proceed.

Following the announcement, Asian financial markets responded with gains. On April 8, 2026, the S&P/ASX 200 Index in Australia increased by 2.47 percent to reach 8,944.30, while Japan’s Nikkei 225 index rose by 4.96 percent to 56,078.83.

What the numbers show

  • The S&P/ASX 200 Index closed at 8,944.30, up 2.47% on April 8, 2026
  • Japan’s Nikkei 225 reached 56,078.83, a 4.96% increase on April 8, 2026
  • The ceasefire was agreed on April 7, 2026, and set for two weeks

Crude oil prices dropped after the ceasefire and the reopening of the Strait of Hormuz were confirmed. The reduction in oil prices followed the restoration of shipping through the strategic waterway.

Pakistani Prime Minister Shehbaz Sharif called on President Trump to extend the deadline for reopening the Strait of Hormuz by an additional two weeks. Sharif stated that this extension would provide more time for diplomatic efforts to continue under the Islamabad Accord framework.

The Islamabad Accord, introduced by Pakistan on April 5, 2026, served as the basis for the ceasefire proposal. Both the United States and Iran accepted the framework, leading to the current agreement and the start of negotiations in Pakistan.

Iran’s Supreme National Security Council confirmed its acceptance of the ceasefire and indicated that talks with the United States would take place in Pakistan as part of the ongoing diplomatic process.

* This article is based on publicly available information at the time of writing.

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