Recent U.S.-Iran diplomacy following the 2026 conflict has shifted focus toward negotiated de-escalation rather than sustained military escalation. Joint U.S.-Israeli airstrikes beginning in late February 2026 targeted Iranian nuclear and military sites, prompting Iranian missile and drone retaliation, but a ceasefire took hold by April with a formal memorandum of understanding signed in mid-June. That framework lifted elements of the U.S. naval blockade, authorized temporary waivers on Iranian oil exports, and launched a 60-day negotiation window—extended through technical talks—on sanctions relief, freedom of navigation in the Strait of Hormuz, and nuclear limits under IAEA oversight. Ongoing mediation by Pakistan and Qatar, combined with statements from U.S. officials emphasizing economic reconstruction incentives over further force, has reinforced trader expectations that Washington will prioritize diplomatic stabilization through the remainder of 2026 rather than commit ground forces for a full-scale invasion.