A woman walks past war-themed graffiti and murals painted on the walls of streets and avenues in the capital Tehran, as air defense systems are activated overnight while daily life continues in the shadow of growing military tensions between the United States and Iran, July 22, 2026 in Tehran, Iran.
Fatemeh Bahrami | Anadolu | Getty Images
A temporary pause in hostilities between the United States and Iran appeared to last Monday, but Iran denied media reports that it had agreed to a 10-day ceasefire.
The US military ended two weeks of strikes on Friday as diplomats sought to begin peace talks. “a little space.” Iran, which has also refrained from carrying out military operations against regional targets in recent days, said it would reciprocate following China-led efforts to resume diplomatic efforts in stalled Pakistan.
Iranian Foreign Ministry spokesperson Esmail Baghaei said Monday that Iran “currently has no negotiations with the United States,” reiterating that ongoing official talks are only with Oman regarding the future of the Strait of Hormuz.
As the United States and Iran suspended hostilities, other actors did launch conflict-related military action over the weekend, underscoring the risk of further escalation and the complex challenges facing negotiators.
THE The Saudi army carried out strikes on Iran-backed Houthi targets in Yemen following the rebel group’s attacks on Red Sea shipping in recent days.
Meanwhile, the Ukrainian military reportedly struck an Iranian commercial ship in the Caspian Sea, killing one sailor and injuring another. kyiv said the ship was used to transport military cargo supporting Russia’s invasion of the country, while Tehran called the attack a “hostile and criminal act.”
Nonetheless, investors were encouraged by the pause in hostilities, which followed shortly after the White House considered a “massive attack” on Iran. Oil price plunged more than 7% early Monday as futures markets highlighted the strong performance of Wall Street.
The challenge facing negotiators But experts warn that prospects for lasting peace face serious challenges. The United States and Iran are not currently in direct formal talks, but are negotiating through intermediaries.
When direct talks are possible, negotiators will need to agree on controversial topics, such as the future of Iran’s nuclear program, sanctions relief and Tehran’s support for its proxy groups in the Middle East.
From an economic point of view, the most important negotiating point will be the guarantee of maritime security as well as the return and normalization of cost-free two-way traffic flows through the strategically vital Strait of Hormuz.
The strait, through which a fifth of the world’s oil supplies passed before the conflict, remains subject to the ongoing US blockade.
Iran’s Baghaei said on Monday that the situation in the Strait of Hormuz had “not changed and it was still closed.”
Oman, located across the strait from Iran, has become a key player in the negotiations. An Omani delegation reportedly visited Tehran on Friday and Saturday to try to negotiate an interim arrangement to manage the transit of ships through the waterway.
Baghaei called the discussions on Friday and Saturday “useful discussions.”
Read more news about the US-Iran warOman also said the negotiations had been constructive, but analysts warn that a normalization of traffic is unlikely in the short term.
“The main market risk remains that of energy and maritime transport,” write Deutsche Bank analysts in a note published Monday. “Traffic through Hormuz remains severely disrupted, while the conflict has spread to the Red Sea.”
“This raises the prospect of simultaneous disruption to the Gulf and Red Sea export routes. So it is a welcome pause from the major players, but a fragile one, especially with the side battles still ongoing.”
