US and Iran Pause Military Strikes as Oil Prices Drop

The United States paused a 13-day campaign of military strikes against Iran on Friday, July 25, 2026. In response, the Iranian army announced Sunday that Tehran had likewise suspended its military response. This de-escalation coincided with talks between Iranian and Omani officials regarding shipping and security in the Strait of Hormuz.

The lull in hostilities triggered a sharp decline in global oil prices, with Brent crude falling 4.2% to $92.02 and West Texas Intermediate dropping 5.2% to $86.48. These shifts lifted the Australian S&P/ASX 200 by 77.8 points on July 26 and boosted Asian stocks on July 27, though energy stocks slumped due to the falling cost of oil.

While the ease in tensions weakened the U.S. dollar and lowered inflation concerns, markets remain focused on the July 28-29 meeting of the Federal Reserve and upcoming earnings reports from megacap technology firms. In Australia, retailer Myer reported a share price tumble of 11.2% following disappointing sales figures attributed to cost-of-living pressures.