Live Updates: Markets embrace Trump's announcement of Iran ceasefire despite new attacks on Gulf states

Israeli military spokesman Avichay Adraee issued a new "urgent warning" to residents in parts of the southern Lebanese city of Tyre on Wednesday to flee their homes as Israel continued ramping up its war against the Iranian-backed group Hezbollah.

Israeli Prime Minister Benjamin Netanyahu has said the country would respect the ceasefire announced by President Trump and halt its attacks on Iran, but that the agreement would not impact Israel's parallel war against Hezbollah.

The 10-point Iranian proposal that both President Trump and the Iranian regime say will form the basis of direct U.S.-Iran negotiations toward a permanent peace agreement over the next two weeks include a call for the cessation of all hostilities in the region, including Israel's war in Lebanon.

But Israel has indicated no willingness to slow the advance of its offensive against Hezbollah, after which it has vowed to occupy a significant portion of southern Lebanon. 

The Israel Defense Forces said Wednesday that it had recently completed the "largest attack carried out against the infrastructure of the terrorist organization Hezbollah since the start of" the war with Iran, "targeting command centers and military infrastructure" of the the Iranian-backed group in Beirut, the Bekaa Valley, and southern Lebanon.

In his warning on Wednesday Adraee warned residents in specific areas of Tyre that Hezbollah "activity compels the IDF to operate against it. The IDF does not wish to harm you. For your safety, we urge you to evacuate your homes at once and move north toward the Al-Zahrani River."

Defense Secretary Pete Hegseth said Wednesday that the U.S. military's job in Iran is done for now.

"Now we have a chance at real peace and a real deal," he said. "The war department, for now - for now - has done its part. We stand ready in the background to ensure Iran upholds every reasonable term. And as everybody knows, nobody makes a better deal than President Trump," said the defense secretary. 

He thanked the service members involved in Operation Epic Fury, but encouraged them to "stay vigilant, and stay ready." 

Defense Secretary Pete Hegseth acknowledged that Iran can and still may shoot missiles, as it appeared to be doing Wednesday, at various Persian Gulf states. 

But Hegseth warned it would be "very, very unwise" for Iran to do so. 

"What little they have left buried in bunkers is all they will have," he said. "They can still shoot, we know that. Their command and control is so decimated they can't really talk and coordinate, so they still may shoot here and there, but that would be very, very unwise. But they can no longer build missiles, build rockets, build launchers or build UAVs."

President Trump said Wednesday that any country "supplying Military Weapons to Iran" would be hit with a 50% tariff on all goods exported to the U.S.

"A Country supplying Military Weapons to Iran will be immediately tariffed, on any and all goods sold to the United States of America, 50%, effective immediately," Mr. Trump wrote on social media. "There will be no exclusions or exemptions!"

Russia is the major supplier of arms to Iran, according to the Stockholm International Peace Institute. 

Existing U.S. sanctions already impose severe penalties on any nation supplying Iran with weapons, and it was unclear whether President Trump's statement indicated an additional punitive measure, or if the sanctions might be lifted as part of a peace agreement with Iran that could result from negotiations during the ceasefire.

Defense Secretary Pete Hegseth opened a news conference on Wednesday by saying Iran was "no longer" a threat to the United States and referring to the American war in Iran, dubbed Operation Epic Fury by the Pentagon, in the past tense. 

"Operation Epic Fury was a historic and overwhelming victory on the battlefield," he said. "A capital 'v' military victory."

He called it a big day for world peace.

"Iran begged for this ceasefire, and we all know it," Hegseth insisted.

The head of the United Nations' maritime organization said Wednesday that he welcomes the U.S.-Iran ceasefire and is working "with relevant parties" to ensure the safe transit of vessels through the Strait of Hormuz following the agreement.

"The priority now is to ensure an evacuation that guarantees the safety of navigation," International Maritime Organization Secretary-General Arsenio Dominguez said in a statement. 

The MarineTraffic.com ship-tracking organization said Wednesday that two vessels had transited the Strait of Hormuz since the U.S.-Iran ceasefire was announced, one of them Greek-owned and the other flying a Liberian flag. They were bulk cargo vessels, not oil tankers.

Officials in Iraq announced on Wednesday that airspace was reopening and flights would resume at airports in the country in the next few hours.

The Civil Aviation Authority said Iraqi airspace would reopen on Wednesday, following the announcement of the ceasefire agreement.

Iraq's Joint Operations Command said the aviation authority would issue instructions for flight schedules, and urged travelers to communicate directly with airlines regarding flight details, reservations and any updates on departures and arrivals.

Iran's Islamic Revolutionary Guard Corps said in a statement Wednesday that it would respect the two-week conditional ceasefire agreed between the country's leadership and the Trump administration, but keep its "fingers on the trigger."

The IRGC statement, shared on social media and by Iran's state news outlets, said that, "drawing on the vast experience of two imposed wars against" Israel the U.S., it would remain "prepared to create an even greater epic should the enemy make another miscalculation."

But in the meantime, the IRGC said it was "heeding the orders of the Supreme Commander of the Armed Forces, His Eminence Ayatollah Seyyed Mojtaba Khamenei." 

"The enemy has always been deceitful, and we have no trust in his promises," the statement said, adding that the IRGC would "respond to any aggression with a higher level of force."

Jordan's military said Wednesday that two missiles launched by Iran were intercepted over the past 24 hours, but it did not say whether they were fired before or after President Trump announced the U.S.-Iran ceasefire.

President Trump said Wednesday that Iran would not return to enriching uranium, and that its existing stockpile of 60% enriched uranium — believed to be buried under its heavily damaged Isfahan facility since U.S.-Israeli strikes in June 2025 — would be unearthed and secured in a joint U.S.-Iranian effort.

Iran has not said anything about such a joint effort or committed publicly to abandoning uranium enrichment under the conditional ceasefire agreement. Iranian leaders have long insisted the country has the right to uranium enrichment for civilian purposes, such as medicine and power generation. 

"The United States will work closely with Iran, which we have determined has gone through what will be a very productive Regime Change! There will be no enrichment of Uranium, and the United States will, working with Iran, dig up and remove all of the deeply buried (B-2 Bombers) Nuclear 'Dust.' It is now, and has been, under very exacting Satellite Surveillance," Mr. Trump said in a Truth Social post, adding that none of the buried, highly enriched uranium "has been touched from the date of attack."

"We are, and will be, talking Tariff and Sanctions relief with Iran," he said, adding that "Many of the 15 points have already been been agreed to."

Iran rejected a 15-point proposal by the U.S., responding with its own 10-point proposal that Mr. Trump and Iran's foreign minister have said will form the basis for negotiations over the next two weeks, during the ceasefire. 

Japan and South Korea announced efforts Wednesday to ensure ships belonging to the two giant Asian economies can safely pass through the Strait of Hormuz, citing the ceasefire agreement between the U.S. and Iran.

The office of Japanese Prime Minister Sanae Takaichi said she held a call on Wednesday with Iranian President Masoud Pezeshkian during which she welcomed the announcement "as a positive development," and stressed the importance of "safety of navigation through the Strait of Hormuz."

Takaichi "urged Iran to ensure the safety of navigation for vessels of all nationalities, including those related to Japan," according to the statement, which added that the two leaders had agreed to "continuing close communication towards an early de-escalation of the situation."

The South Korean presidential Blue House said, meanwhile, that the government would do its best to ensure the country's ships can pass through the Strait of Hormuz as soon as possible in the wake of the U.S.-Iran deal, under which Mr. Trump said Iran would allow safe passage for all vessels.

The South Korean government's maritime ministry said authorities had discussed with local shippers how to help their vessels pass through the strait, according to the Reuters news agency.

South Korean authorities have not lifted an advisory for ships to avoid sailing near the strait, due to ongoing risks in the region, but the ministry said it would provide full support for 26 South Korean-flagged vessels stranded in the region.

Reuters quoted an unnamed South Korean official as saying the government hopes to get those vessels through the strait during the two-week ceasefire.

Oil prices plunged Wednesday, staying well above pre-war levels but dropping below the $100 a barrel mark, and stocks soared after the United States and Iran said they had agreed to a two-week conditional ceasefire that should see Tehran temporarily reopen the vital Strait of Hormuz.

U.S. West Texas Intermediate lost almost 20% and global benchmark Brent Crude oil shed as much as 16%, with both trading around the $95 mark early Wednesday as investors heaved a huge sigh of relief after more than five weeks of war that has hammered supplies.

The euphoria sent global equities rocketing on hopes the crisis that has shocked the global economy for more than a month will come to an end.

Stocks in Seoul jumped 6.9% and Tokyo 5.4%, while Taipei added more than 4% and Mumbai 3.8%. Hong Kong advanced more than 3%, while Sydney, Shanghai, Bangkok, Manila, Jakarta, Singapore and Wellington were also sharply higher.

London, Paris and Frankfurt extended the global rally, while U.S. futures soared.

Middle East stocks also rallied, with Dubai jumping 8.5%, the biggest intraday increase since December 2014, according to Bloomberg.

CBS/AFP

A maritime monitoring service said Wednesday that vessel movement was resuming in the Strait of Hormuz, with two ships moving through the vital waterway.

"Early signs of vessel activity are emerging in the Strait of Hormuz following a ceasefire," MarineTraffic said on X.

"Initial movements are now being recorded," it said. "The Greek-owned bulk carrier NJ Earth crossed the Strait at 08:44 UTC, while the Liberia-flagged Daytona Beach transited earlier at 06:59 UTC, shortly after departing Bandar Abbas at 05:28 UTC."

MarineTraffic said that "hundreds of vessels remain in the region, including 426 tankers, 34 LPG carriers, and 19 LNG vessels, many of which had been effectively stranded during the disruption."

Both ships that transited the strait on Wednesday passed close to Iran's Larak Island, which analysts have said the regime is using as a "toll booth" to collect fees for safe passage.

The Associated Press, citing a regional official directly involved in the negotiations, said the plan allows for both Iran and Oman to charge fees for ships to transit the strait. The official told the AP that Iran intended to use the money from its fees for post-war reconstruction.

The United Arab Emirates said Wednesday afternoon its air defenses fired at an incoming Iranian missile barrage. And Kuwait's military said its forces responded to an "extensive wave" of drone attacks.

A gas processing facility in Abu Dhabi was ablaze after incoming Iranian fire, officials said. The fire stopped for a time, but then restarted.

Missile alerts were issued in the United Arab Emirates, Israel, Saudi Arabia, Bahrain and Kuwait after the ceasefire announcement. 

"Air defense systems are currently responding to a missile threat," the UAE's emergency and disaster authority said in a post on X. "Please remain in a safe location and follow official channels for warnings and updates."

Iran then said an oil refinery came under attack, with Iranian state TV reporting that an oil refinery on Iran's Lavan Island was attacked on Wednesday. The report said firefighters were working to contain the blaze but no one had been hurt. It did not say who launched it.

CBS/AP

At least three explosions were heard around Iran's Lavan Island Oil Refinery, the country's state media reported Wednesday, hours after President Trump said the U.S. and Iran had agreed to a conditional two-week ceasefire.

It was not immediately clear whether U.S. or Israeli forces had launched new attacks on the island, which sits less than 10 miles off Iran's coast in the Persian Gulf, west of the entrance to the Strait of Hormuz.

Iran's Mehr news agency said several explosions were also reported on Siri Island, southeast of Lavan and much closer to the mouth of the Strait of Hormuz. It said the cause of the blasts remained unclear.

"Considering the need for both sides to adhere to the declared ceasefire, and according to the Armed Forces, any aggression against the country will be met with a regrettable response," Mehr said.

Vice President JD Vance, who is on a trip to Hungary, called the ceasefire a "fragile truce," adding that the Iranian foreign minister had responded favorably to the agreement, but that others in the country had been "lying" about what had been accomplished militarily and the ceasefire.

"This is why I say this is a fragile truce," he said. "You have people who clearly want to come to the negotiating table and work with us to find a good deal and then you have people who are lying about even the fragile truths that we've already struck."

Vance said that if Iranians are willing "in good faith to work with us," he believes they can make an agreement. 

"What the president has also shown is that we still have clear military, diplomatic and, maybe most importantly, we have extraordinary economic leverage," Vance said. "So the president has told us not to use those tools. He's told us to come to negotiating table. But if the Iranians don't do the exact same thing, they're going to find out that the president of the United States is not one to mess around. He's impatient. He's impatient to make progress." 

The EU's top diplomat described the U.S.–Iran agreement on Wednesday as "a step back from the brink."

"It creates a much-needed chance to tone down threats, stop missiles, restart shipping, and create space for diplomacy towards a lasting agreement," said Kaja Kallas, who is vice president of the European Commission and the EU high representative for foreign affairs and security policy.

She said she spoke to Pakistan's foreign minister and thanked him for securing the deal, but urged that "the door to mediation" remain open, "as the underlying causes of the war remain unresolved." 

European Commission President Ursula von der Leyen said she welcomes the ceasefire, which "brings much-needed de-escalation."

She also said she thanked Pakistan for mediating, adding, "Now it is crucial that negotiations for an enduring solution to this conflict continue."

Egypt's foreign ministry called the U.S.-Iran ceasefire agreement "a significant step" toward ending the war permanently on Wednesday, with a spokesperson saying Cairo would seek to capitalize on the diplomatic momentum.

"The decision by the United States and Iran to agree to a ceasefire is a significant step towards de-escalation in the region. We must now allow diplomacy to take its course. We shall continue to uphold our faith in diplomacy and allow dialogue to prevail," Ambassador Tamim Khallaf, the ministry spokesperson, told CBS News, adding that Egypt would "exert its utmost efforts to capitalize on this positive momentum to diffuse existing tension and bring the war to a complete end."

Iran's Supreme National Security Council shared a long statement on Tuesday lauding the conditional ceasefire agreement with Washington as a "great victory" 38 days after the U.S. and Israel launched their joint war on the Islamic Republic.

An English version of the statement posted online by Iran's semi-official Tasnim news agency, which is affiliated with the country's powerful Islamic Revolutionary Guard Corps, said Tehran had "forced the criminal America to accept its 10-point plan, in which the United States is committed in principle to guaranteeing non-aggression, continuing Iranian control over the Strait of Hormuz, accepting (uranium) enrichment, lifting all primary and secondary sanctions, terminating all resolutions of the UN Security Council and the IAEA Board of Governors, paying compensation to Iran, withdrawing American combat forces from the region and stopping the war on all fronts, including against the heroic Lebanese Islamic resistance [Hezbollah]."

The Council's statement added that, "until the details of this victory are finalized, there is still a need for perseverance and prudence on the part of the authorities."

Announcing the agreement on his Truth Social platform, President Trump called the 10-point plan, which was conveyed earlier in the week to Washington by Pakistani intermediaries,  "a workable basis on which to negotiate."

"Almost all of the various points of past contention have been agreed to between the United States and Iran, but a two week period will allow the Agreement to be finalized and consummated," Mr. Trump said.

President Trump said Tuesday that he had agreed to a "double sided CEASEFIRE" with Iran, less than two hours before his deadline for Iran to make a deal with the U.S. or face massive strikes on its power plants and bridges. 

"I agree to suspend the bombing and attack of Iran for a period of two weeks," the Mr. Trump wrote on Truth Social, arguing that the U.S. had "already met and exceeded all Military objectives."

He said the ceasefire, which he agreed to at Pakistan's request, was "subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz."

Iranian Foreign Minister Seyed Abbas Araghchi confirmed that Iran had agreed to halt "defensive operations," likely referring to its drone and missile strikes on U.S. allies in the region, if the U.S. stops attacking Iran. 

Araghchi said Iran's armed forces would coordinate "safe passage through the Strait of Hormuz," but it was unclear what that coordination might involve. Analysts say Iran has, for the past week or more, allowed select vessels to transit the strait for hefty fees, using its Larak island as a "toll booth."