With just over an hour left before the deadline he set, former U.S. President Donald Trump announced his acceptance of a two-week ceasefire proposal, signaling a possible de-escalation in the ongoing tensions with Iran. At roughly the same time, Israeli officials reported detecting incoming missiles from Iran, underscoring the region’s volatility. For now, the limited truce proposed by Pakistan in the final hours appears to have been accepted by both sides in an effort to allow further negotiations.
Cryptocurrency markets react to ceasefire
The news of Trump’s endorsement of a two-week pause in hostilities triggered a surge in cryptocurrency prices. This move likely came after Iran also agreed to the ceasefire, with Trump’s formal announcement coming less than two hours before the deadline. Market observers were not surprised by this rapid development, considering the recent spikes in oil prices and the global economic uncertainty fueled by the prolonged conflict.
Hormuz Strait to reopen for negotiations
Under the terms of the current arrangement, Iran has agreed to reopen the strategic Strait of Hormuz for two weeks, while both sides review and negotiate a ten-point proposal aimed at making the ceasefire permanent. With only a few months left before the U.S. midterm elections, Trump faces mounting pressure to stabilize the economy and demonstrate effective crisis management.
Trump elaborated on the agreement in a timely social media message:
“Following discussions with Pakistan’s Prime Minister Shehbaz Sharif and General Asim Munir, I was asked tonight to call off the destructive force set to be sent to Iran, provided that the Islamic Republic of Iran agrees to fully, immediately, and safely reopen the Strait of Hormuz. Under this condition, I am suspending aerial bombardment and all attacks on Iran for a period of two weeks.
This will be a mutual ceasefire. We believe we have already accomplished and surpassed all our military objectives, and are now very close to a definitive agreement on lasting peace with Iran and stability in the Middle East.
We have received a ten-point proposal from Iran, which we believe offers a workable basis for negotiations. The U.S. and Iran have reached consensus on almost all the issues from previous disputes, and this two-week interval will allow the finalization of the agreement.
As President of the United States, and in representation of the countries of the Middle East, it is an honor to see this long-standing issue so close to resolution. Thank you for your interest in this matter. President DONALD J. TRUMP”
Much like last year’s 12-day conflict, this current standoff has run longer than expected, with both parties appearing reluctant right up until the final moments. Yet, an agreement was finally reached, and market analysts suggest that if the reopening of the Strait of Hormuz is officially confirmed, Bitcoin (BTC) could climb to $75,000.
On the oil front, prices rapidly slipped below $107 and subsequently dropped past $103. Industry experts warn there is potential for further declines, possibly reaching as low as $93 in the coming hours. Bitcoin, on the other hand, soared to $71,298 over a 24-hour period. Meanwhile, CNN reported just moments ago that Israel had also agreed to the temporary ceasefire.
