The United States and Iran reached a sudden agreement on a "two-week ceasefire" on the 38th day of war on Tuesday (local time). The two countries dramatically avoided a breakdown just 88 minutes before the negotiation deadline set for 8 p.m. (9 a.m. Wednesday Korea time). Both nations are scheduled to begin peace negotiations in Islamabad, Pakistan, on January 10. Vice President JD Vance is expected to lead the US delegation, while Iran has several candidates under consideration, including Parliament Speaker Mohammad Bagher Ghalibaf.
President Donald Trump announced via Truth Social at 6:32 p.m. that day, "I agree to halt bombings and attacks on Iran for two weeks, provided Iran agrees to the full, immediate and safe opening of the Strait of Hormuz." Iran's Supreme National Security Council also issued a statement saying the US had accepted all 10 points of Iran's proposed peace plan, according to The New York Times. Iranian Foreign Minister Abbas Araghchi posted on X, "Safe passage will be possible with the cooperation of Iranian forces for two weeks."
With this development, the war between the US-Israel alliance and Iran, which began on April 28 and had continued since, has entered a dramatic phase of provisional ceasefire. International oil prices, which had surged above $110 per barrel during the conflict, fell below $100 immediately after news of the two-week truce broke. Korean stock markets also rallied across the board on the ceasefire news. The KOSPI closed at 5,872.34, up 377.56 points (6.87%) from the previous trading day, and briefly surged to 5,919.60 during the session, crossing the 5,900 mark for the first time in 15 trading days. The KOSDAQ index also rose more than 5%.
However, a difficult road lies ahead before an actual end to the war. The two countries remain at odds over uranium enrichment, a core issue. Meanwhile, Israeli Prime Minister Benjamin Netanyahu said he "supports President Trump's decision" to agree to a ceasefire with Iran, while indicating he would continue offensive operations in Lebanon, the stronghold of the pro-Iran Hezbollah.