U.S. AND IRAN AGREE TO 2-WEEK CEASEFIRE

and Iran are expected to hold peace talks on Friday in Islamabad, two sources familiar with the plans told Axios.Driving the news: Israel has agreed to the ceasefire and will also suspend its strikes, a White House official said. The same official said the ceasefire will come into force when Iran opens the Strait of Hormuz.State of play: There have been discussions through mediators about potential in-person negotiations, likely to be led by Vice President Vance, though nothing has been announced.The announcement comes less than 12 hours after Trump threatened to wipe out Iran's entire civilization. More specifically, he threatened bridges, power plants and potentially oil and water infrastructure.The latest: Financial markets reacted with instant relief to the news.SP 500 futures rose more than 1, while oil futures quickly sank about 6.Markets had been weak all day on fears of an escalation, before rallying late in the day on signs a deal might be at hand.Behind the scenes: Negotiations between the U.S. and Iran picked up momentum over the past 24 hours, as Axios reported, with Pakistan serving as the primary mediator. Israeli Prime Minister Benjamin Netanyahu, the leaders of Saudi Arabia and the UAE, and political allies like Sen. Lindsey Graham (R-S.C.) had urged Trump to reject any proposal unless Iran made major concessions.Members of Trump's team, including Vance and envoy Steve Witkoff, have advised him to take a deal if they could get one.What he's saying: Based on conversations with Prime Minister Shehbaz Sharif and Field Marshal Asim Munir, of Pakistan, and wherein they requested that I hold off the destructive force being sent tonight to Iran, and subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz, I agree to suspend the bombing and attack of Iran for a period of two weeks, Trump wrote. This will be a double sided CEASEFIRE! The reason for doing so is that we have already met and exceeded all Military objectives, and are very far along with a definitive Agreement concerning Longterm PEACE with Iran, and PEACE in the Middle East.We received a 10 point proposal from Iran, and believe it is 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.On behalf of the United States of America, as President, and also representing the Countries of the Middle East, it is an Honor to have this Longterm problem close to resolution. Thank you for your attention to this matter!The other side: On behalf of the Islamic Republic of Iran, I express gratitude and appreciation for my dear brothers HE Prime Minister of Pakistan Sharif and HE Field Marshal Munir for their tireless efforts to end the war in the region, Araghchi wrote.In response to the brotherly request of PM Sharif in his tweet, and considering the request by the U.S. for negotiations based on its 15-point proposal as well as announcement by POTUS about acceptance of the general framework of Iran's 10-point proposal as a basis for negotiations, I hereby declare on behalf of Iran's Supreme National Security Council: If attacks against Iran are halted, our Powerful Armed Forces will cease their defensive operations. For a period of two weeks, safe passage through the Strait of Hormuz will be possible via coordination with Iran's Armed Forces and with due consideration of technical limitations.Editor's note: This is a breaking news story. Please check back for updates.