US halts strikes on Iran after ceasefire breakdown

The United States has temporarily halted its strikes on Iran following nearly two weeks of continuous bombardments. This development follows the breakdown of an Islamabad-brokered ceasefire that was initially intended to halt hostilities in the ongoing conflict between the United States, Israel, and Iran. The conflict, which has been active since February 2026, saw a resumption of strikes earlier this month, targeting key Iranian military installations. The recent pause in attacks has led to speculation about a potential de-escalation in tensions, although the situation remains volatile with no clear indication of a lasting truce. Key Takeaways The pause in US strikes on Iran appears to suggest a temporary de-escalation in the ongoing conflict. Market pricing indicates a decrease in the likelihood of a full Iranian airspace closure by July 31, now priced at 6.5% YES. The recent developments suggest a fragile diplomatic environment, reflecting the ongoing volatility and uncertainty in the region. What to Watch Observers will be closely monitoring statements from key actors such as the Civil Aviation Organization of Iran and US officials for indications of further de-escalation. Any ...