Middle East Situation | Iran Accepts Ceasefire Proposal, Dow Futures Surge Over 900 Points, NY Oil Plummets More Than 16%

After U.S. President Donald Trump agreed to suspend attacks on Iran for two weeks, Iran said it accepted the ceasefire proposal put forward by Pakistan. U.S.-Iran negotiations began on Friday in Islamabad to finalize the details, with the goal of confirming Iran’s battlefield gains through political means within a maximum of 15 days.

Spurred by the news, U.S. stock index futures for the Dow rose by 940 points to 47,752. The Dow gave back 85 points from its earlier gains to close down for the full day, and during the trading session it fell by as much as 455 points. New York crude oil in electronic trading widened its decline to 16.55%, trading at $94.26 per barrel.

In the early hours of Wednesday (the 8th), Iran’s Mehr News Agency cited a statement from the secretariat of Iran’s Supreme National Security Council, reporting that it had submitted the “10-point” proposals to the United States through Pakistan. Negotiations with the United States will begin on April 10 in Islamabad, the capital of Pakistan, for two weeks; if both sides agree, the period can be extended.

Iran’s 10-point proposal includes, in coordination with Iran’s armed forces, controlled passage through the Strait of Hormuz; ending the war targeting Iran and organizations allied with it; and withdrawing U.S. military forces from all regional bases. It also calls for canceling all primary and secondary sanctions, paying Iran full compensation, and releasing all frozen Iranian assets.

Iran also said that dialogue with the United States does not mean the end of the war; it would accept an end to the war only after the details are finalized according to the “10-point plan.” Iran’s foreign minister, Araqchi, said that if attacks stop, Tehran will halt defensive operations, and safe passage through the Strait of Hormuz for two weeks is possible.

Pakistan’s Prime Minister Shehbaz Sharif earlier said in a social media post that “diplomatic efforts aimed at peacefully ending the current Middle East conflict are being steadily and powerfully advanced, and are expected to achieve tangible success soon.” To leave room for the diplomatic process, he urged Trump to postpone the “final deadline” for talks with Iran by two weeks, and at the same time asked “brotherly Iran” to open the Strait of Hormuz for two weeks as a show of goodwill.

Trump’s deadline for Iran to reopen the Strait of Hormuz was originally due to expire at 8:00 p.m. U.S. Eastern Time on Tuesday (8:00 a.m. Hong Kong time on Wednesday). Earlier, he posted on social media threatening Iran, saying, “Tonight, the entire civilization will perish and never return,” and demanding that Iran either reach an agreement or face a large-scale strike by U.S. forces on Iran’s civilian infrastructure.