What’s going on: President Donald Trump announced a two-week ceasefire with Iran after warning “a whole civilization” would die. The deal, brokered by Pakistan and China, came shortly before his 8 pm Tuesday deadline for Tehran to open the Strait of Hormuz or face total obliteration. The 14 days buys both sides time to negotiate a longer-term deal and for the US to consider Iran’s 10-point proposal. US-Iran talks are expected to resume Friday, and the Strait of Hormuz is expected to reopen. But the damage may already be done, especially to global supply chains. Cargo ships stacked with goods have been stuck in the Strait for weeks.
What this means back home: While the ceasefire deal pushed US crude oil prices under $100 for the first time in over a week, experts warn it likely won’t make a difference. Air travel and grocery bills have also shot up. There’s also another caveat in the ceasefire deal: Iran and Oman are expected to charge cargo ships that pass through the Strait — a move that isn’t likely to ease prices. With negotiations ongoing and fighting continuing elsewhere in the Middle East, what happens next is far from certain. In the meantime, many hope the pause in fighting brings temporary relief in a conflict that, according to one agency, has claimed 1,600 civilian lives in Iran and at least 13 US service members.
