US President Donald Trump suspended American strikes on Iran on Friday, July 25, opening room for diplomacy. The decision, made several hours after an Omani delegation arrived in Tehran for talks on navigation in the Strait of Hormuz, has already led to a noticeable decrease in tension on global markets.
On Monday, July 27, 2026, Brent crude oil prices fell by more than 5%. As of the morning, futures were down 5.24% from the previous close, dropping to $86.8 a barrel. This was the lowest opening price, after which the quote partially recovered. A similar drop was recorded for US WTI crude grades.
The United States has not struck Iranian targets for the second consecutive night. Tehran, in turn, has also refrained from retaliatory actions. Both sides took a pause after 13 days of continuous combat operations, interrupting an escalation cycle that began in early July.
There is a set of reasons behind the suspension of strikes. According to an administration official, Trump is creating space for negotiations with Iran. Furthermore, the US military leadership warned the president about the risks of depleting ammunition reserves if large-scale operations continued. US Permanent Representative to the UN, Mike Waltz, confirmed that the pause should be seen as an opening for a diplomatic solution. Previously, concerns about the blocking of the Strait of Hormuz caused serious worry regarding global oil supplies.
Markets reacted sharply and positively. The decline in oil prices by more than 5% was a direct reflection of investors' hopes for de-escalation. Compared to previous weeks, when escalation caused speculative oil growth, the downward correction signals the market's perception of a stabilization scenario through negotiations.
Oman's role in this process is critical: the Sultanate's diplomatic delegation arrived in Tehran on July 24 to discuss new mechanisms for managing navigation in the strait. It is reported that Iran and Oman have made progress in negotiations on restoring safe passage for ships through the Strait of Hormuz – one of the key bottlenecks in global energy trade.
The main question remains open: is this a temporary respite for negotiations or the beginning of a real settlement process? One thing is clear: both sides have chosen diplomacy over continued strikes, and financial markets have immediately recognized this. Further actions by Washington and Tehran will determine how long-term this truce will be. In the meantime, the decline in oil prices offers global markets a much-needed respite after weeks of high tension.
