President Trump announced a two-week ceasefire agreement between the United States and Iran on Tuesday night, ending what administration officials termed "Operation Epic Fury" after 40 days of military conflict. The agreement came hours after Trump had threatened severe military action against Iran.

Defense Secretary Pete Hegseth told reporters at the Pentagon on Wednesday that the military operation had significantly damaged Iran's weapons facilities and rendered its military "combat ineffective for years to come." Hegseth claimed Iran had requested the ceasefire, though Iranian officials have disputed aspects of the U.S. characterization of events.

Vice President JD Vance described the ceasefire as a "fragile truce" and said Trump remained "impatient to make progress" on longer-term arrangements. Multiple international actors, including Turkish intelligence according to media reports, played roles in facilitating the agreement. The European Union welcomed the ceasefire while urging efforts toward a lasting peace deal.

Financial markets responded positively to the ceasefire news, with stocks rising sharply while oil prices and energy sector stocks declined on reduced supply disruption fears. Trump warned Wednesday that any country supplying military weapons to Iran would face 50% tariffs on goods sold to the United States.

The ceasefire's durability remains uncertain, with former General Jack Keane expressing skepticism about Iran's commitment to negotiations. The agreement provides a temporary pause in hostilities but leaves broader questions about regional stability and long-term diplomatic solutions unresolved.