‘Back from the brink’: EU hails Iran ceasefire deal

The EU has welcomed the announcement of a two-week ceasefire in the war between the US and Iran after an eleventh hour deal that saw Donald Trump walk back his threat to wipe out Iran’s “civilisation”.

“I welcome the two-week ceasefire the US and Iran agreed last night. It brings much-needed de-escalation,” Ursula von der Leyen, European Commission president, wrote on X. “Now it is crucial that negotiations for an enduring solution to this conflict continue. We will continue coordinating with our partners to this end.”

Her words were echoed by Kaja Kallas, the EU’s top diplomat, who said that the deal “is a step back from the brink after weeks of escalation”.

“It creates a much-needed chance to tone down threats, stop missiles, restart shipping, and create space for diplomacy towards a lasting agreement,” she said.

But Kallas warned that deal “must” see the Strait of Hormuz – a critical energy chokepoint that Tehran effectively closed following the US-Israeli attack on 28 February – “open for passage again”.

“The door to mediation must remain open, as the underlying causes of the war remain unresolved,” she said. “The EU stands ready to support those efforts and is in touch with partners in the region.”

German Chancellor Friedrich Merz also welcomed the deal. “The goal must now be to negotiate a permanent end to the war,” he said, adding that Berlin is “in close consultation with our partners on this”.

France’s Emmanuel Macron similarly hailed the ceasefire as “a very good thing”, adding: “It is indeed through negotiations that we will be able to provide the security guarantees necessary for stability throughout the region.”

Sir Keir Starmer, Britain’s prime minister, said the deal “will bring a moment of relief to the region and the world”.

“Together with our partners we must do all we can to support and sustain this ceasefire, turn it into a lasting agreement and reopen the Strait of Hormuz,” said Starmer, who is travelling to the Middle East today for talks with Gulf leaders.

Spain’s Pedro Sánchez, who has repeatedly condemned the US-Israeli attack on Iran, struck a more critical tone.

“Ceasefires are always good news,” he said. “Especially if they lead to a just and lasting peace. But this momentary relief cannot make us forget the chaos, the destruction, and the lives lost.”
“The government of Spain will not applaud those who set the world on fire just because they show up with a bucket,” he added.

The art of the deal

The remarks come amid confusion about the details deal between Washington and Tehran, which was brokered by Shehbaz Sharif, Pakistan’s prime minister.

In a social media post last night, Trump claimed that a 10-point peace plan submitted by Iran was a “workable basis on which to negotiate” and that “almost all of the various points of past contention” between Washington and Tehran “have been agreed to”.

In a sign of trouble ahead,Tehran’s plan includes many details that the US had previously staunchly rejected, including Iran’s continued control over the Strait and a US full military withdrawal from the Middle East.

Trump’s remarks suggest “a lower bar for agreement, but Iran’s reported 10-point plan includes elements such as the lifting of all sanctions and Iran controlling the Strait of Hormuz that have previously been unacceptable to the US and allies,” Deutsche Bank analysts wrote in note on Wednesday morning.

European financial markets also welcomed the the news of the ceasefire on Wednesday morning.

The STOXX 600, a broad measure of European equities, surged 3.7%. 10-year Bund yields, the eurozone government borrowing benchmark, fell from 3.08% to 2.93%. The euro was roughly stable against the dollar, at $1.169.

(bw, cs)