Iran halts retaliatory strikes as US gives diplomacy 'more room'

Iran and the United States have paused their attacks, offering Gulf shipping and global oil markets a respite after weeks of escalating strikes around the Strait of Hormuz. Issued on: 27/07/2026 - 11:24 2 min Reading time Tehran said on Monday it had halted retaliatory operations against Washington’s regional allies, while US ambassador to the United Nations Mike Waltz said President Donald Trump was allowing diplomacy “a little bit of room”. US forces nevertheless remained “locked and loaded”, Waltz told Fox News, indicating that military action could resume if negotiations failed to make progress. The pause follows a sharp escalation that disrupted earlier diplomatic efforts between Washington and Tehran. Fighting around the Strait of Hormuz triggered a US air campaign and Iranian reprisals targeting shipping routes, Gulf states and military bases across the region. Before the latest lull, the US military had struck Iran for 13 consecutive nights – the most intense period of fighting since a ceasefire in April. However, Friday, Saturday and Sunday nights passed without further US bombing. “Since our strategy has essentially been retaliatory, we have also halted our retaliatory operations,” Iranian army spokesman Mohammad Akraminia said. United States launches new Iran strikes and reimposes naval blockade Oil prices retreat The reduction in hostilities brought immediate relief to energy markets, with oil prices falling sharply on Monday as investors cautiously welcomed the pause. The price of North Sea Brent crude, the international benchmark, dropped by more than 7 percent at one stage and briefly fell below €79 a barrel. US benchmark West Texas Intermediate was down 4 percent at €75 a barrel. The Strait of Hormuz is one of the world’s most important oil transport routes, and the widening conflict had raised fears of prolonged shipping disruption and further pressure on energy prices. Unconfirmed reports in Iranian media on Sunday said an oil tanker had been damaged by a sea mine, underlining the continued risks to commercial vessels operating in the region. The lull has revived hopes that negotiations could resume, although US media reports have suggested that pressure on American stocks of Patriot interceptors and other defensive weapons may also have influenced the decision to pause the campaign. Trump rejected suggestions that the US was running low on military supplies. “We have far more munitions than anyone in the world, and far more than we need,” he told The Wall Street Journal. US-Iran fighting escalates with infrastructure targeted Pressure over nuclear programme Meanwhile, Israeli Prime Minister Benjamin Netanyahu is due to meet Trump at the White House on Tuesday and is expected to urge the US president to maintain pressure on Tehran, particularly over its nuclear programme. Iran has repeatedly said its nuclear activities are intended for civilian purposes, but the US, Israel and their allies accuse Tehran of seeking the capacity to develop a nuclear weapon. Netanyahu said he supported Trump’s efforts to end the programme through negotiations, provided the objective was achieved. Trump said on Friday that he had not yet decided whether to return to a full-scale operation, while suggesting Iran was becoming more serious about negotiations. “We’re talking to them right now. I think they’re getting more and more serious,” he told journalists. The conflict, which Trump had initially predicted would last four or five weeks, is now approaching its fifth month and has begun to weigh on his approval ratings ahead of the US midterm elections in November. In Tehran, the pause brought a measure of normality on Sunday. Shops and restaurants remained open, while residents navigated heavy traffic and a summer heatwave. (with newswires)