The United States and Iran held their fire for a second consecutive day on July 26, 2026, as mediators pressed both sides to return to negotiations over an interim deal that has been badly eroded by weeks of military exchanges.
The pause followed nearly two weeks of U.S. strikes on Iranian coastal areas and infrastructure, triggered by Iran's firing on commercial vessels attempting to transit the Strait of Hormuz. The Pentagon did not immediately respond to questions about why it had halted operations.
'President Trump has always been consistent in saying he prefers a diplomatic solution, but he continues to retain all options if Iran continues terrorist activities in the Strait of Hormuz or against allies,' White House communications director Steven Cheung said. 'It would be wise for Iran to work toward a negotiated deal. Otherwise, they know what will happen.'
Since the U.S. halted attacks for the past two nights, Iran has done so as well, according to Iran's army spokesperson on state TV. Tehran had previously counterattacked against countries in the region hosting U.S. military forces, killing at least three at a base in Jordan.
The 60-day period that began when the interim deal was signed by both countries in mid-June is now well into its second half. Major issues — notably Iran's nuclear program — remain set aside as mediators scramble to keep both sides at the table.
A regional official involved in mediation efforts, speaking on condition of anonymity, called the pause a 'positive signal that helps their efforts to de-escalate.' The official said a compromise being negotiated centers on having Iran manage vessel transit through the Strait of Hormuz with fewer restrictions on ships.
Iran's Foreign Ministry spokesperson Esmail Baghaei said Sunday that talks with Oman over managing safe passage on the strait had 'made progress and continued.' Tehran has asserted the interim deal allows it to manage shipping on the waterway, and has objected to U.S. efforts to support a transit route passing closer to Oman.
The U.S. military said Saturday its recently reimposed naval blockade against Iran continued, with a dozen commercial ships redirected, two disabled, and two boarded. U.S. forces 'remain highly vigilant, focused, lethal, and ready,' it added.
Concerns have also spread to the Bab al-Mandeb strait leading to the Red Sea, where Iranian-backed Houthi rebels in Yemen last week threatened a blockade of Saudi shipping.
Israeli Prime Minister Benjamin Netanyahu plans to travel to Washington to meet with President Trump on Tuesday. The two last met in Washington in February, weeks before they launched the war on Iran that killed senior leaders including Supreme Leader Ayatollah Ali Khamenei. Netanyahu told Fox News on Sunday he 'fully' backs Trump's efforts to weaken Iran and end its nuclear program, adding: 'If he can do so without returning to intense military fighting, that's fine. Why not?' He warned, however, that if Iran again attacks Israel directly or through armed proxies, 'it will make a terrible mistake.'
The numbers come first — and they are not reassuring. Gasoline prices have risen again, global energy supplies hang in the balance, and the 60-day diplomatic window is closing fast. The Trump administration has correctly identified that leverage, not concession, is what brought Tehran back to the table. A Hormuz deal that restores free transit for commercial shipping would be a genuine market win — reducing the risk premium baked into every barrel of oil moving through one of the world's most critical chokepoints. But capital rewards clear rules, and no investor or shipping company will treat a two-day pause as durable certainty. The test is whether Washington can convert this tactical quiet into a framework that actually removes Iran's hand from the throat of global commerce.
