Trump soon blasted Iran's response as "totally unacceptable."

Iran agreed Tuesday to reopen the Strait of Hormuz as Tehran and the US reached a two-week cease-fire deal — a dramatic breakthrough in a nearly 40-day war that rattled global shipping and sent gas prices soaring.

Israel and Lebanon have agreed to 10-day ceasefire between Israel and Hezbollah. President Donald Trump announced the ceasefire, which began at midnight.

Iran’s grip on the Strait of Hormuz has jolted the world economy, causing a spike in fuel prices that has rippled through other sectors with effects far beyond the Middle East. It has also left tens of thousands of mariners and hundreds of ships stranded in the Persian Gulf.

The Trump administration’s approach to the Iran war over the past 24 hours has pinballed from declarations that a tenuous ceasefire was holding and military operations were over to new threats of bombing the Islamic Republic.

The U.S. is racing to reopen the Strait of Hormuz as Iran reportedly lays mines in the critical waterway, testing the Navy's shift to unmanned systems.

The U.S. military says it fired on Iranian forces and sank six small boats as it moved to reopen the Strait of Hormuz

Efforts to reopen the Strait of Hormuz have been the focus of talks between US secretary of state Marco Rubio and UK Foreign Secretary Yvette Cooper.The pair discussed the ongoing Iran crisis as Britain and France prepared to co-host a meeting of 40 defence ministers on Tuesday about plans to protect shipping in the critical waterway once hostilities cease in the conflict.