The world welcomed on Wednesday a diplomatic breakthrough for peace in the Middle East as Iran, the United States and Israel agreed to a two-week ceasefire brokered by Pakistan, potentially suspending a six-week-old war that has killed hundreds and disrupted global energy supplies.
The eleventh-hour truce was achieved as US President Donald Trump withdrew his threat to obliterate "a whole civilization" and Iranian authorities agreed to temporarily reopen the Strait of Hormuz, a crucial maritime corridor that facilitates one-fifth of the world's oil exports.
Pakistan has said that negotiations to hammer out a permanent deal to end the war could begin in Islamabad as soon as Friday. All parties have reportedly expressed their willingness to join the negotiations, but it is unclear how much agreement there is regarding the modalities of the talks.
READ MORE: US, Iran agree on 2-week ceasefire
Nevertheless, the news of a two-week ceasefire pushed down crude prices, with West Texas Intermediate losing almost 20 percent and Brent as much as 16 percent.
The euphoria also sent global equities rocketing. China's benchmark Shanghai Composite Index gained 2.69 percent to close at 3,995 on Wednesday, while Sydney, Bangkok, Manila, Jakarta, Singapore and Wellington were sharply higher. Middle East stocks rallied, with Dubai jumping 8.5 percent, the biggest intraday increase since December 2014, according to Bloomberg data.
China welcomed the ceasefire on Wednesday and expressed hope that all parties will work together to ensure the safe passage of vessels through the Strait of Hormuz.
The strait "is an important route for global goods and energy trade, and safeguarding its security and stability serves the common interests of the international community", Mao Ning, Foreign Ministry spokeswoman, said at a daily news briefing in Beijing.
"We have been advocating for a ceasefire and negotiations," Mao said, adding that China will continue to play a "constructive role" toward achieving lasting peace in the region.
Kaja Kallas, the European Union's top diplomat, said the ceasefire created a "much-needed" window for diplomacy.
United Nations Secretary-General Antonio Guterres welcomed the ceasefire, his spokesperson said in a statement, adding that the UN chief "calls on all the parties to the current conflict in the Middle East to comply with their obligations under international law and to abide by the terms of the ceasefire".
Iran's Foreign Minister Abbas Araghchi pledged safe passage for all vessels through the Strait of Hormuz for two weeks if the US and Israel held their side of the deal.
Iran reiterated its demand for continued control over the Strait of Hormuz, called for a $2 million transit fee per vessel while offering to share the revenue with Oman, and sought international acceptance of its nuclear enrichment activities, full revocation of all primary and secondary sanctions against the country, and withdrawal of US forces from the region.
ALSO READ: China vows continued constructive role in promoting Gulf peace
Vessel movements resumed on Wednesday in the strait, ship-tracking service MarineTraffic said, adding that Greek-owned bulk carrier NJ Earth and Liberia-flagged Daytona Beach have crossed the strait.
Trump said the US is "very far along" in negotiating a long-term deal with Iran that has submitted a 10-point plan, which he called "a workable basis for negotiation".
Israel's Prime Minister Benjamin Netanyahu said early on Wednesday that he backed the ceasefire deal between the US and Iran, but clarified that it doesn't cover fighting against Hezbollah in Lebanon. The remarks contradicted Pakistan's statement that the ceasefire terms included the issue of Israeli strikes in Lebanon.
Contact the writers at cuihaipei@chinadaily.com.cn
