Fragile ceasefire lifts markets as Trump threatens 50% tariffs on Iran arms suppliers

A tense, Pakistan-mediated ceasefire between the United States and Iran provided a momentary respite, lifting global markets after the two nations agreed to a two-week truce and scheduled peace talks in Islamabad. The agreement was reached just hours before a Trump-imposed deadline for Iran to capitulate or face widespread destruction of its civilian infrastructure. However, the fragile diplomatic progress was immediately undercut by new economic threats from the White House.

President Donald Trump escalated tensions by threatening to impose immediate 50% tariffs on all goods from any country that supplies military weapons to Iran, declaring there would be "no exclusions or exemptions." This new trade weapon, announced via social media, adds a complex economic dimension to the conflict. Simultaneously, Iran demonstrated its leverage by blocking oil tanker passage through the critical Strait of Hormuz and warning it may withdraw from the ceasefire if Israeli attacks on Lebanon persist. The situation remains volatile as high-level diplomatic meetings, including between US Secretary of State Marco Rubio and NATO's Mark Rutte, continue in Washington.