US, Iran Agree to Conditional Two-Week Ceasefire, Hormuz Strait to Reopen

Updated by Faith Barbara N Ruhinda at 1219 EAT on Wednesday 8 April 2026

European markets reacted positively to news of the ceasefire, with major indices posting strong early gains.

London’s FTSE 100 rose by 2.5 percent in early trading on Wednesday, while France’s CAC 40 climbed 4.07 percent. Germany’s DAX also surged, gaining 4.87 percent.

Asian markets rallied in tandem. Japan’s Nikkei jumped 5.5 percent, South Korea’s Kospi advanced 6.8 percent, Hong Kong’s Hang Seng gained 3 percent, and China’s Shanghai Composite index rose 2.5 percent

The Israel Defense Forces (IDF) says it has halted its strikes on Iran, in line with directives from the country’s political leadership, but will continue military operations in Lebanon.

In a statement, the IDF said it had “completed a wave of strikes in Iran” and had now ceased fire in accordance with official instructions. It added that it remains “highly prepared to respond defensively to any violations” against Israel.

However, the military said operations against Hezbollah are ongoing, with “targeted ground operations” continuing in Lebanon.

The two-week ceasefire announced by former US President Donald Trump last night requires Iran to reopen the Strait of Hormuz.

However, shipping analyst Lars Jensen, a former executive at Danish logistics giant Maersk, told BBC Radio 4’s Today programme that “nothing has really changed yet” in the strait, adding that “it will take time” for trust to develop.

Jensen said he expects a wave of vessels to exit the Gulf over the coming days, but only a “trickle” to enter, citing the risk of ships becoming trapped if the ceasefire collapses.

The Israel Defense Forces carried out a wave of air strikes in southern Lebanon early this morning, signalling that the US–Iran ceasefire deal does not extend to the country.

The strikes targeted areas around Tyre and Nabatieh shortly after the agreement was announced.

Benjamin Netanyahu has denied that the deal covers the conflict with the Iranian-backed Lebanese armed group Hezbollah.

Officials in Lebanon and Hezbollah have yet to comment, while Pakistan — which mediated the ceasefire — indicated that the agreement was intended to involve Lebanon as well.

Recent reports suggested that Hezbollah had urged Iran to include the Lebanese front in any negotiations.

Meanwhile, Israel has indicated it aims to establish a security buffer zone along the border inside Lebanese territory. Israeli troops have entered Lebanon, raising fears that parts of the country could come under occupation.

An adviser to the president of the United Arab Emirates said the country has “triumphed” after enduring repeated Iranian attacks since the outbreak of war.

“We prevailed through an epic national defence that safeguarded sovereignty and dignity and protected our achievements in the face of treacherous aggression,” said Anwar Gargash.

“Today, we move forward to manage a complex regional landscape with greater leverage, sharper insight, and a stronger capacity to influence and shape the future,” he added.

The UAE’s Ministry of Defence has been publishing regular updates on intercepted Iranian attacks since the start of the conflict. In its latest update on Tuesday, the ministry reported intercepting 2,221 drones, 26 cruise missiles, and 520 ballistic missiles.

Meanwhile, the Sultanate of Oman’s foreign minister welcomed the ceasefire, praising Pakistan’s role in brokering the deal while stressing the need to “intensify efforts” to secure a permanent truce.

The two-week ceasefire marks a tentative step toward stability in a region long defined by conflict and strategic rivalry.

While tensions remain high and key players continue to pursue their interests — from Iran and Israel to the UAE and Djibouti — the agreement offers a window for diplomacy, reconstruction, and the potential for longer-term peace. Observers caution that much will depend on whether trust can be sustained, and whether regional powers can navigate the delicate balance between security, commerce, and political influence in one of the world’s most vital waterways.

-BBC

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