The guns have gone quiet — at least for now. In a stunning diplomatic reversal that sent global markets surging and oil prices crashing, President Donald Trump announced Tuesday evening that the United States had agreed to a two-week ceasefire with Iran, suspending six weeks of sustained U.S. and Israeli military strikes just hours before Trump’s own deadline for escalation was set to expire.

The announcement came via Trump’s Truth Social platform and was confirmed by Iranian, Pakistani, and international officials within hours. The ceasefire is conditional on one non-negotiable requirement: Iran must guarantee the complete, immediate, and safe reopening of the Strait of Hormuz to international shipping — the waterway through which roughly one-fifth of global oil and liquefied petroleum gas flows.

Trump added that the U.S. had received a 10-point proposal from Tehran — which he described as a “workable basis” for further negotiations. He explicitly credited two Pakistani officials — Prime Minister Shehbaz Sharif and Army Chief Field Marshal Asim Munir — with facilitating the breakthrough.

The market response was immediate and dramatic. Energy traders, who had been bracing for potential destruction of Iran’s infrastructure and further Hormuz disruption, reversed course sharply.

The fact that gold also rose — despite the ceasefire news — signals that markets, while relieved, are not treating the truce as a certainty. Investors remain alert to the possibility of a breakdown before permanent terms are reached in Islamabad.

The ceasefire might never have happened without Pakistan. As Trump’s April 7 deadline ticked toward 8 p.m. ET, PM Sharif made a public appeal for a two-week extension and urged Iran to open the Strait as a goodwill gesture. Working through overnight phone calls with Trump, Vice President JD Vance, envoy Steve Witkoff, and Iranian Foreign Minister Abbas Araghchi, Sharif and Field Marshal Munir threaded an extraordinarily narrow diplomatic needle — and succeeded.

Trump’s announcement was itself a form of recognition: he credited Sharif and Munir by name, a public acknowledgment that Pakistan served as the indispensable communication channel at the moment the conflict teetered on its most dangerous edge. UN Secretary-General António Guterres expressed “sincere appreciation for the efforts of Pakistan and other countries involved in facilitating the ceasefire.” German Chancellor Friedrich Merz, EU Commission President Ursula von der Leyen, and Malaysian PM Anwar Ibrahim all issued formal thanks to Islamabad.

Even as celebrations spread across social media — hashtags including #IslamabadAccord and #PakGlobalPeaceMaker trended globally — analysts urged caution. Minor incidents were already reported in Lebanon, where Israeli and Hezbollah forces continued exchanging fire. Iran’s 10-point plan includes demands — including sanctions relief and reconstruction commitments — that will require difficult negotiation. And gold’s continued rise, despite the announcement, reflects investors’ residual doubt that the truce will hold.

What is certain: for the first time in 38 days of Operation Epic Fury, the bombs have stopped. The Strait of Hormuz is expected to begin reopening. And the world’s attention turns to a city that has quietly maneuvered itself to the center of one of the most consequential diplomatic moments in recent memory — Islamabad, Pakistan.

FFN will carry live coverage of the Islamabad Talks beginning Friday, April 10. Follow updates at fandfnews.com. Market figures sourced via Bloomberg News. Official statements via UN, White House, and Pakistani government channels.