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A temporary ceasefire between the United States, Iran, and Israel is holding — but just barely. U.S. Vice President JD Vance described the two-week truce as "fragile" on Wednesday, warning that Iran appeared to be misrepresenting the agreement domestically. Speaking at an event in Hungary, Vance said a lasting peace remains possible only if Tehran negotiates in good faith, adding, "ultimately, it's up to the Iranians how they negotiate."
The ceasefire follows weeks of escalating military conflict that rattled global energy markets and threatened international oil supply chains. President Donald Trump, who had previously threatened to destroy Iranian infrastructure if the Strait of Hormuz remained blocked, announced the truce on social media, crediting Pakistan as a key mediator. Iran submitted a 10-point proposal that Trump called a workable foundation for negotiations, and Pakistani Prime Minister Shehbaz Sharif invited both nations to Islamabad for talks on Friday.
Despite the pause in hostilities, fresh strikes were reported across the Persian Gulf on Wednesday. The United Arab Emirates said its air defenses intercepted incoming Iranian missiles, Kuwait reported drone attacks on energy infrastructure, and Iranian state television confirmed a strike on an oil refinery on Lavan Island. The situation remains volatile.
Global markets responded with cautious optimism. Brent crude oil prices dipped below $100 per barrel after weeks of sharp increases driven by fears over restricted oil flow through the Strait of Hormuz — a narrow waterway carrying roughly one-fifth of the world's oil supply. Asian and European stock markets rallied on the news, though analysts warn that price volatility will persist until a durable agreement is reached and shipping flows normalize.
Trump pledged that the U.S. military would assist with maritime traffic through the strait, expressing confidence that the situation would stabilize and calling the moment an economic opportunity for global trade.
