The US and Iran agreed to pause military strikes on July 26, and global markets responded with immediate enthusiasm.
Major stock indices including the S&P 500, Dow Jones, and Nasdaq all posted significant gains as oil prices dropped to multi-month lows. The crypto market joined the party too, with Bitcoin climbing as traders rotated back into risk-on mode after weeks of conflict-driven anxiety.
What actually happened
The pause follows a period of aggressive escalation between Washington and Tehran, with US strikes on Iranian targets drawing counter-responses that had markets on edge for weeks. The agreement builds on an earlier interim deal struck in June 2026, which focused on reopening the Strait of Hormuz, one of the world’s most critical oil transit chokepoints.
For context, roughly 20% of the world’s petroleum passes through that narrow waterway.
