President Donald Trump announced a two-week ceasefire with Iran, calling it a ‘definitive’ peace agreement, according to the BBC, though the deal came just hours before Trump’s 20:00 EDT deadline to either launch massive strikes against Iranian energy and transportation infrastructure or reach a deal. This temporary pause in hostilities allows the US and Iran to engage in negotiations over the next two weeks, according to the BBC.

Iran’s Conditions for Ceasefire

The ceasefire is contingent on Iran suspending hostilities and fully opening the Strait of Hormuz to commercial shipping traffic, according to the BBC; the Iranian regime said it will do so, while insisting it still exerts ‘dominion’ over the waterway. This condition highlights the delicate balance of power in the region and the strategic importance of the strait.

Trump’s decision to agree to the ceasefire appears to have bought him a temporary reprieve from what was shaping up to be a treacherous choice, according to the BBC. He faced the option of escalating with his promise that a ‘whole civilisation will die tonight’ or backing down and undermining his credibility; However, this ceasefire may not resolve the underlying tensions between the two nations.

Market Reactions and Political Fallout

In after-hours trading. The price of a barrel of oil dropped below the $100 mark for the first time in days, while US stock futures soared, according to the BBC. This suggests a sense of optimism that the worst is over, but However, the political fallout from Trump’s previous threats is still being felt within the US.

Democrats were quick to condemn Trump’s words on Tuesday, with some going so far as to call for his removal, according to the BBC; Congressman Joaquin Castro wrote on X that it is clear the president has continued to decline and is not fit to lead. Chuck Schumer. The top Democrat in the US Senate, said any Republican who did not join in voting to end the Iran war ‘owns every consequence of whatever the hell this is.’.

While many in Trump’s own party stood by their president, it was far from the near-universal support he often enjoys, according to the BBC; Austin Scott, a Republican congressman from Georgia, strongly criticized Trump’s threats about a civilisation dying. He told the BBC that the president’s comments were counter-productive and that he did not agree with them.

Wisconsin Senator Ron Johnson, usually a Trump loyalist, said it would be a ‘huge mistake’ if Trump followed through with his bombing campaign, according to the BBC. Congressman Nathaniel Moran of Texas wrote on social media that he did not support ‘the destruction of a ‘whole civilisation.’ He added, ‘This is not who we are, and it is not consistent with the principles that have long guided America.’

Uncertain Future and Long-Term Costs

Even if the two-week ceasefire results in a permanent peace, the Iran war—and Trump’s recent words—may have fundamentally altered the way the rest of the world views the US, according to the BBC. A nation that once styled itself as a force for stability around the globe is now shaking the foundations of the international order.

Iran’s foreign minister, Seyed Abbas Araghchi, said in a statement after Trump’s ceasefire message that Iran would halt its ‘defensive operations’ and allow safe passage through the Hormuz ‘via coordination with Iran’s armed forces,’ according to the BBC. He added that the US had accepted the ‘general framework’ of the Iranian 10-point plan, which includes the US withdrawing its military forces from the region, lifting economic sanctions on Iran, paying compensation for war damages, and allowing Iran to maintain control over Hormuz.

For the moment, however, this is a partial political victory for Trump. He made a dramatic threat and achieved the desired result, according to the BBC. But the ceasefire is a reprieve, not a permanent settlement. The long-term cost of the president’s words and actions, and of the war overall, has yet to be fully assessed.

Trump’s Truth Social post announcing the ceasefire stated that the US had ‘met and exceeded’ all its military objectives, according to the BBC. Iran’s military has been significantly degraded. Although its Islamic fundamentalist regime is still in power, many of its top leaders have been killed in bombing strikes. However, many of the stated American objectives are still in doubt, including the disposition of Iran’s enriched uranium and its influence over regional proxies like the Houthi rebels in Yemen.