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A fragile pause: Why the Iran ceasefire doesn’t end global risks

By Rajkumar Sinha* 
Just an hour and a half before the deadline, US President Donald Trump announced a ceasefire in the conflict that had been ongoing since 28 February between the United States, Israel and Iran. Iran has officially accepted the ceasefire. In a social media post, Trump stated that consensus had been reached on all contentious issues with Iran and that a final agreement could be concluded within two weeks. He also revealed that Iran had submitted a 10-point proposal, which he described as a practical basis for negotiations.
According to Trump, assurances regarding the reopening of the Strait of Hormuz were conveyed through Pakistan’s Prime Minister Shehbaz Sharif and Field Marshal Asim Munir. Sharif has announced that talks between Iranian and American representatives are scheduled to take place in Pakistan on 10 April. Islamabad’s role as a mediator has been significant, reflecting its attempt to facilitate a diplomatic resolution between the two adversaries.
It is worth noting that this is not the first attempt at dialogue. Over the past year, Iran and the United States have held talks twice before, only for hostilities to erupt again mid-process. The recent escalation followed sharp warnings from Washington, including threats to target Iran’s infrastructure and even rhetoric about ending its “civilisation.” In response, Iran asserted that the strength of a civilised nation lies in its culture, reason and conviction in just causes, rather than submission to coercive pressure. Foreign Ministry spokesperson Esmaeil Baghaei reiterated that Iran would take all necessary steps to safeguard its rights and interests.
International concern grew rapidly during the conflict, given its potential impact on global security and energy supply. Iranian authorities and state media have portrayed the agreement as a major diplomatic victory, emphasising that the country withstood more than 30 days of sustained military pressure from the United States and Israel. Early in the conflict, senior leadership figures, including Supreme Leader Ali Khamenei and top commanders of the Islamic Revolutionary Guard Corps, were reportedly killed in US-Israeli strikes—underscoring the existential nature of the crisis for Iran’s ruling establishment.
According to Iranian sources, the 10-point proposal includes commitments to non-violence, firm international guarantees against future attacks, and continued Iranian control over the Strait of Hormuz under its own terms. It also calls for recognition of Iran’s uranium enrichment programme, removal of primary US sanctions, cessation of Israeli strikes, and the termination of relevant resolutions of the UN Security Council and other governing bodies. The proposal further demands compensation for wartime damage, withdrawal of US combat forces from the region, closure of American military bases in the Gulf, and a broader ceasefire encompassing theatres such as Lebanon and Gaza, including an end to hostilities involving Hezbollah.
The economic fallout of the conflict has been severe. The International Energy Agency described the disruption as potentially the largest supply shock in the history of the global oil market, evoking memories of the 1970s energy crisis. Supply constraints, currency instability, inflationary pressures and the spectre of recession have intensified worldwide. The crisis has strained the economic model of the Gulf Cooperation Council and triggered a second major energy shock for Europe, exacerbated by disruptions in liquefied natural gas supplies from Qatar and the closure of key maritime routes.
Industrial production in the United Kingdom and the European Union has taken a hit, with sectors such as chemicals and steel imposing surcharges of up to 30 percent to offset rising energy and input costs. Globally, petroleum distribution has been severely disrupted, contributing to economic turmoil from Wall Street to Dalal Street. Estimates suggest that the world economy has already suffered losses running into trillions of rupees, while US expenditures on the conflict have surged dramatically. Indian investors, too, have faced significant losses amid market volatility.
This confrontation was never merely a regional conflict. It has shaken the foundations of global power dynamics, energy security and economic stability. Iran’s projection of the agreement as a “diplomatic victory,” and the United States’ acceptance of it as a workable solution, both indicate that prolonged confrontation has compelled a search for middle ground.
Yet, the path ahead remains fraught. Key elements of the proposal—such as sanctions relief, recognition of Iran’s nuclear programme, control over the Strait of Hormuz and the withdrawal of US forces—are deeply complex and politically contentious. Their implementation will be neither swift nor straightforward.
Ultimately, the episode offers a sobering lesson: while war may serve as an assertion of power, durable solutions can emerge only through dialogue, mutual trust and balanced diplomacy.
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*Bargi Dam Displaced and Affected Association

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