Following a request from Pakistan Prime Minister Shehbaz Sharif, US President Donald Trump has temporarily halted military action against Iran. The decision came after discussions involving Pakistan Army Chief Asim Munir.
Trump announced a two-week pause, urging Iran to reopen the Strait of Hormuz for safe global transit within that period. Reports suggest Iran has informally indicated willingness to comply.
Global markets reacted sharply to the development. Crude oil prices dropped by over 15%, while gold prices surged from $4,658 to around $4,830 per ounce.
Stock markets also rebounded strongly. The Dow Jones gained 718 points, while the S&P 500 and Nasdaq rose by 1.6% and 1.7% respectively.
Trump stated that the pause is not unilateral and that the broader goal is to achieve long-term peace in the Middle East. He also noted receiving multiple proposals from Iran aimed at resolving the crisis.
Meanwhile, the developments are expected to impact India’s economy as well. The Reserve Bank of India’s monetary policy announcement today is being closely watched amid global uncertainties.
