When the US-Iran conflict was escalating in mid-March, very few expected Pakistan to intervene as it did. But over the weeks that followed, Islamabad slowly moved into the centre of the crisis, and by early April, it had become the main line of communication between Washington and Tehran.

By then, the war had already taken a serious turn. US and Israeli strikes had hit Iranian targets, and Iran responded by tightening control over the Strait of Hormuz, a route that carries a huge chunk of the world’s oil. 

Now, after more than a month of fighting, Trump has announced that the United States and Iran have agreed to a two-week ceasefire. Trump also revealed that Iran has put forward a 10-point proposal, which he described as a “workable” peace point that could help bring the war to an end.

The ceasefire comes at a time when Pakistan is under economic pressure. Immediately after the announcement, Pakistan’s benchmark KSE-100 stock index jumped as much as 8.3%, marking its biggest one-day gain in nearly a year.

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How the ‘Islamabad Accord’ took shape

Just days ago, on April 6, Pakistan had proposed a two-step plan to end the conflict, which is now being referred to as the “Islamabad Accord.” The idea was to implement an immediate ceasefire and then conduct detailed negotiations for a long-term solution. A key part of the plan included reopening the Strait of Hormuz and stabilising the region. There were also reports that mediators had earlier discussed the possibility of a longer, 45-day ceasefire.

Talks picked up pace as pressure mounted on Trump

According to reports, negotiations between the US and Iran were finalised over the past 24 hours, with Pakistan playing the main role in bringing both sides together. At the same time, Trump was under pressure from different sides.

Leaders like Israel’s Prime Minister Benjamin Netanyahu, along with Saudi Arabia and the UAE, and allies such as Senator Lindsey Graham, had reportedly urged him not to accept any deal unless Iran made major concessions. But within his own team, there was a different view. Vice President JD Vance and envoy Steve Witkoff were said to be in favour of taking a deal if one could be reached.

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At the same time, Prime Minister Shehbaz Sharif went public. In a post on X, he urged Trump to extend his deadline by two weeks “to allow diplomacy to run its course.” In the same breath, he appealed to Iran, calling them “brothers,” and asked them to reopen the Strait of Hormuz as a goodwill gesture.

As part of the agreement, Iran has indicated that its armed forces will oversee and coordinate the safe movement of ships through the Strait of Hormuz during the ceasefire period.

How Pakistan became a key mediator?

On one side, it had long-standing ties with Iran, sharing a border and a history of engagement. On the other, it had built a working relationship with Donald Trump’s administration. After clashing with India last year, Pakistan supported Trump’s peace efforts, even nominating him for the Nobel Peace Prize. New Delhi, however, rejected Trump-mediated efforts. Munir has traveled to Washington multiple times, with Trump even calling him “my favourite field marshal.”

Over time, Pakistan became the main messenger between Iran and Washington, passing on a US 15-point proposal to Iran and then carrying back Iran’s response, which came in the form of a shorter 5- or 10-point plan.

At the same time, Pakistani officials were also speaking to countries like Egypt, Turkey and Saudi Arabia, trying to build bigger support. Islamabad also offered itself as a neutral place for talks. With oil prices rising and energy pressure building at home, the crisis was simply too big to ignore.

Strategic ties and motivations

Pakistan has historically good relations with both Iran and Gulf states, including Saudi Arabia, and has a mutual defense pact with Saudi Arabia. Avoiding direct involvement in the war was a strong incentive for Islamabad to mediate.

Economic concerns also drove Pakistan’s role. Iran’s blockade of the Strait of Hormuz disrupted global energy supplies, affecting Pakistan’s own oil and gas imports. Before the ceasefire, Iran agreed to allow 20 Pakistani vessels to pass through the strait safely. Pakistan also explored allowing global traders to use Pakistani flags for their ships to ensure continued passage.

Trump credits Pakistan

In his announcement, Trump made it clear that Pakistan’s intervention had influenced his decision. He said, “Based on conversations with Prime Minister Shehbaz Sharif and Field Marshal Asim Munir, of Pakistan… I agree to suspend the bombing and attack of Iran for a period of two weeks,” while making it conditional on the “COMPLETE, IMMEDIATE, and SAFE OPENING” of the Strait of Hormuz.

Hours later, Iran’s Supreme National Security Council accepted the two-week ceasefire and confirmed that talks would now move to Islamabad. On the ground, US forces stopped offensive operations, though they stayed ready in a defensive position. Markets reacted almost instantly, with oil prices falling as fears of supply disruption eased.

Pakistan’s Shehbaz Sharif confirms ceasefire

Pakistan Prime Minister Shehbaz Sharif confirmed the development in a detailed post on X, saying the agreement goes beyond just the US and Iran. He wrote,  “With the greatest humility, I am pleased to announce that the Islamic Republic of Iran and the United States of America, along with their allies, have agreed to an immediate ceasefire everywhere, including Lebanon and elsewhere, EFFECTIVE IMMEDIATELY.”

‘Islamabad Talks’ next as Pakistan invites both sides

Sharif also said he has invited delegations from both countries to Islamabad on April 10 to push talks further and try to reach a final agreement. In his post, he said,  “I warmly welcome the sagacious gesture and extend deepest gratitude to the leadership of both countries and invite their delegations to Islamabad on Friday, 10th April 2026, to further negotiate for a conclusive agreement to settle all disputes.”

He added that both sides had shown maturity in handling the situation. “Both parties have displayed remarkable wisdom and understanding and have remained constructively engaged in furthering the cause of peace and stability. We earnestly hope, that the ‘Islamabad Talks’ succeed in achieving sustainable peace and wish to share more good news in coming days!”

A diplomatic win, but a fragile pause

The two-week ceasefire is now in place, but it is only a pause. The real test will come in Islamabad, where both sides are expected to sit down and try to turn this temporary break into something lasting.