US, Iran, and Israel Reach Two-Week Ceasefire; Strait of Hormuz to Reopen

The United States and Iran have reached a two-week ceasefire agreement, narrowly avoiding a deadline for escalation set by the Trump administration. The deal includes a critical commitment from Tehran to temporarily reopen the Strait of Hormuz, a vital artery for global oil shipments. The White House confirmed that Israel has also joined the ceasefire agreement, signaling a coordinated effort to stabilize the region. This diplomatic breakthrough comes at a moment of extreme tension, where the threat of direct conflict had heightened global market anxiety. Alongside the ceasefire, Tehran has submitted a comprehensive 10-point proposal aimed at a more permanent resolution. While the specific details of the 10-point plan were not fully disclosed in the immediate announcement, the temporary reopening of the shipping lanes serves as a primary confidence-building measure. The reopening of the Strait of Hormuz is expected to alleviate immediate pressure on crude oil prices and reduce the geopolitical risk premium currently embedded in energy futures. Market participants will likely monitor the two-week window closely to determine if the 10-point proposal leads to a sustainable de-escalation.