The African Union has welcomed the immediate ceasefire agreement announced between the United States and Iran, describing it as a significant diplomatic breakthrough and urging all parties to sustain dialogue to secure a durable and comprehensive peace amid growing global concerns over the conflict's economic and humanitarian impact.

In a statement released on Wednesday, African Union Commission Chairperson Mahmoud Ali Youssouf said the truce offers a critical opportunity to ease regional tensions and mitigate the spill over effects that have disrupted fuel supplies and driven up the cost of basic commodities across Africa.

Youssouf said the ceasefire reflects a shared commitment to de-escalation and aligns with the African Union's consistent calls for restraint and the peaceful resolution of disputes.

"The repercussions have been felt globally, including across Africa, where disruptions to fuel supplies have driven inflation and increased the cost of basic commodities," the AU chairperson said, adding that the truce presents "a critical opportunity to ease the suffering of populations affected both directly and indirectly."

The AU also commended the diplomatic efforts by regional and international mediators that helped secure the ceasefire. He stressed that sustained dialogue and inclusive diplomacy remain essential to consolidating the gains made through the ceasefire, warning that only continued engagement can lead to a durable and comprehensive peace.

He reaffirmed the African Union's support for diplomatic efforts aimed at preventing renewed hostilities, saying dialogue in line with the Charter of the United Nations remains the only viable path to resolving international crises.

The truce followed weeks of heightened tensions that rattled global energy markets and raised concerns over maritime trade routes, particularly around the Strait of Hormuz, a vital corridor for global oil shipments.

The ceasefire agreement between the United States and Iran was announced shortly before a deadline set by US President Donald Trump, who had warned that "a whole civilization will die tonight" if Iran did not reopen the Strait of Hormuz.