NZ welcomes Iran/US ceasefire, but significant work remains

There is tentative optimism that a conditional ceasefire agreed to by Iran and the United States is the first step towards ending the conflict between them.

U.S President Donald Trump has called off the bombing of Iran for two weeks, subject to the opening of the Strait of Hormuz.

Iran’s Foreign Minister said if attacks against Iran are halted, then safe passage through the Strait will be possible during the two-week period.

Trump also called Iran’s proposed ten-point peace plan “workable.”

Pakistan, which has been working as a mediator, has invited the two sides to hold talks in Islamabad this weekend.

New Zealand has welcomed the collective announcements.

Foreign Minister Winston Peters says the country will continue to stand in support of all efforts “to bring about a lasting and durable end to this conflict.

“While this is encouraging news, there remains significant and important work to be done in the coming days to secure a lasting ceasefire.”

Peters is currently in the United States and held discussions with Secretary of State Marco Rubio, during which he pointed out the conflict's wide-ranging impacts and disruptions, including in New Zealand and the wider Pacific region. 

News of the ceasefire has been reflected by a positive surge in stock markets around the world and a sharp drop in oil prices.

Brent crude fell about 13%, hovering around US$95 a barrel.

Finance Minister Nicola Willis said prices here typically respond quickly to oil market moves - usually within a week or so.

"It may take longer in this instance, given the heightened volatility in markets, and the residual uncertainty about the geopolitical situation."

She said it's also unclear how fast cargo will begin to move through the Strait, should the ceasefire hold.

"Oil and gas facilities have also been damaged, or shut down across the region."

University of Otago International Relations Professor Robert Patman believes today’s agreement means there is a chance to move forward.

However, he's unsure whether the U.S and Israel have identical aims, which keeps the situation tenuous. 

“It’s been difficult to work out why the US has engaged in this very costly, more than a billion dollars a day, conflict.

“However, I think many of us are just grateful that the US and Iran have agreed to de-escalate, and that is a very welcome sign.”