President Donald Trump has officially suspended planned military strikes against Iran for a period of two weeks , announcing a "double sided CEASEFIRE" just as his 8 p.m. ET deadline expired on Tuesday, April 7.
The president confirmed the decision followed high-level conversations with Pakistan’s Prime Minister Shehbaz Sharif and Field Marshal Asim Munir, who requested a hold on the "destructive force" prepared for tonight.
The suspension remains subject to Iran’s "COMPLETE, IMMEDIATE, and SAFE OPENING" of the Strait of Hormuz.
President Trump signaled that a definitive peace agreement is now within reach, noting that the U.S. has received a "10 point proposal" from Tehran that serves as a workable basis for negotiations.
"Almost all of the various points of past contention have been agreed to," Trump stated, adding that the two-week window will allow the agreement to be finalized.
"It is an Honor to have this Longterm problem close to resolution,"he wrote.
Trump had previously warned that failure to end the blockade of the critical oil waterway by Tuesday evening (April 7) would result in a significant escalation against Iran.
Related: Lawmakers call to remove Trump after Iran warning
A massive rally for markets
The ceasefire announcement triggered an immediate and powerful recovery across global markets . Digital assets, which had been under pressure throughout the day, staged a massive rally as the threat of immediate conflict receded.
Bitcoin (BTC) jumped over 3% to trade at $71,128.97, while Ethereum (ETH) surged more than 4% to reach $2,196.32. Solana (SOL) saw the most significant gains, climbing 5.5% to $84.54 as investors flooded back into risky assets.
U.S. stocks also experienced a late-day turnaround. The S&P 500 erased an earlier 1.2% loss to finish with a modest gain of 0.1%, while the Nasdaq composite also moved into positive territory.
These dramatic swings reflect the relief felt by investors following the removal of Trump's "civilization-ending" ultimatum.
The 'civilization' ultimatum
The tension reached a boiling point following a series of stark warnings from the White House. Trump stated that “ a whole civilization will die tonight ” if Iran failed to reopen the Strait of Hormuz, a critical waterway that carries one-fifth of the world’s seaborne oil.
Trump had given Tehran until 8 PM in Washington (3:30 AM in Tehran) to end its blockade of key oil route or face the destruction of its primary infrastructure.
Iran responded with its own threats, suggesting that any U.S. action would lead to retaliation against Gulf neighbors. Tehran warned that desert cities in the region could become uninhabitable if power and water systems were destroyed.
However, the late-night breakthrough suggests that "smarter, and less radicalized minds" may have prevailed, fulfilling Trump's hope for a "revolutionarily wonderful" outcome.
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The battle for Kharg Island
In the hours preceding the deadline, military activity had already intensified. Reports from the Wall Street Journal and CNN confirmed that U.S. forces carried out strikes on military targets across Kharg Island.
This coral outcrop is an economic lifeline for Tehran, handling roughly 90% of the country’s crude oil exports.
Vice President JD Vance described these strikes as a continuation of existing efforts rather than a shift in strategy. Trump later clarified that the U.S. has "already met and exceeded all Military objectives," providing the leverage needed for the current ceasefire.
A push for peace
The two-week ceasefire marks a historic shift in the regional conflict.
In addition to the mediation by Pakistan's leadership, the U.S. is now focused on finalizing the 10-point proposal received from Iran.
While the world waits to see the safe reopening of the Strait of Hormuz, the resolution of the "civilization" ultimatum remains the most significant moment in a long and complex history of Middle East conflict.
Related: Mysterious trader moves $20M before Trump’s 8 PM ultimatum
This story was originally published by TheStreet on Apr 7, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.
