US and Iran Pause Military Strikes as Oil Prices Plummet

The United States paused a 13-day campaign of military strikes against Iran on Friday, July 25, 2026. In response, Iran announced it would halt retaliatory attacks provided the U.S. maintained its restraint. The ceasefire followed a period of intense escalation involving Iranian attacks on ships in the Strait of Hormuz and Houthi rebel strikes on Saudi Arabian energy facilities. Reports indicate President Donald Trump paused the bombing campaign after advisers warned that the military was depleting its arsenal and running out of targets.

This de-escalation triggered a massive sell-off in energy markets. Brent crude, which had previously exceeded $100 per barrel, plummeted by more than 8% to approximately $85.87. The drop alleviated global inflation fears and boosted gold prices, which climbed toward $4,100 per ounce. Global stock markets in Asia, Europe, and Australia initially rallied, though Wall Street ended mixed as investors pivoted toward upcoming megacap tech earnings and a Federal Reserve policy meeting on July 28-29.

Diplomatic efforts have shifted to Oman, where Iranian and Omani officials discussed common principles for safe shipping passage through the Strait of Hormuz. Despite the pause, regional instability persists. Iran-backed Houthi rebels continued to attack Saudi oil installations in Jizan and Yanbu and declared a blockade of the Bab al-Mandeb Strait. Additionally, Saudi Arabia reported shooting down drones launched by Iran-backed militias in Iraq.