US and Iran Agree Two-Week Ceasefire as Trump Pulls Back From Threat to 'End Civilisation'
The United States and Iran have agreed a two-week ceasefire, bringing a temporary halt to weeks of escalating military conflict that had sent oil prices surging, threatened global shipping through the Strait of Hormuz, and raised fears of a wider regional war.
The announcement, made by President Donald Trump on 8 April, came after a period of intensified US and Israeli strikes on Iranian military, nuclear, and infrastructure targets — and followed Trump's earlier threat that "a whole civilisation will die" if Iran did not comply with his demands.
Key Developments
The ceasefire announcement triggered a significant relief rally in global financial markets. Stock markets surged and oil prices fell below $100 a barrel on hopes that oil and gas flows through the critical Strait of Hormuz could resume. The Strait carries approximately 20% of the world's oil supply, and its closure had been a major driver of energy price inflation across Europe and the UK.
However, the ceasefire's durability was immediately questioned, with reports of continued attacks in Iran and neighbouring Gulf Arab nations even hours after the truce was declared. At the United Nations, Russia and China vetoed a resolution aimed at formally reopening the Strait of Hormuz, complicating efforts to stabilise the situation.
Background
The conflict escalated sharply following Israeli and American strikes on Iran's nuclear facilities in June 2025, which prompted Iranian ballistic missile attacks on Israeli cities. The subsequent weeks saw strikes on Iranian railway bridges, an airport, a petrochemical plant, and the Damavand power station near Tehran. The conflict has had severe economic consequences globally, with the Bank of England warning of a "substantial negative supply shock" to the UK economy and a sharp rise in government bond yields.
Why It Matters
For the UK and Ireland, the ceasefire offers potential relief from the energy price pressures that have driven fuel protests across Ireland and contributed to the cost-of-living crisis. UK 10-year gilt yields had risen by 74 basis points as a result of the conflict's economic impact. A sustained ceasefire could ease inflationary pressures and reduce the risk of a deeper economic downturn.
What's Next
The two-week ceasefire is intended to create space for diplomatic negotiations, but the underlying tensions between the US, Israel, and Iran remain unresolved. European governments, including the UK, are expected to push for a more durable diplomatic settlement. The fragility of the truce means that markets and governments will be watching developments closely in the days ahead. Full France 24 coverage at France 24.
