• Israel has decided to halt its attacks on Iran, according to sources familiar with the matter.
  • The move comes amid heightened tensions and follows international mediation efforts.
  • Oil prices dipped on the news, reflecting eased fears of a broader regional conflict.

Sudden Pause in Hostilities

Israel has decided to stop its military strikes on Iran, according to two people familiar with the decision. The halt, effective as of Thursday evening, marks a significant shift after weeks of escalating exchanges that had pushed the region to the brink of a wider war. The reasons for the pause were not immediately clear, but sources indicated it followed intense behind-the-scenes diplomacy involving the United States and European intermediaries.

Immediate Market Reactions

Brent crude fell 2.3% to $78.50 a barrel on the news, as traders priced in a reduced risk premium for Middle East supply disruptions. Safe-haven assets like gold and the US dollar also retreated. “This is a clear risk-off reversal,” said a senior commodities analyst. “But the situation remains fragile, and any blip could send prices soaring again.”

Background and Context

The decision comes after a series of tit-for-tat strikes that began in early April, when Israel bombed an Iranian diplomatic compound in Damascus, killing several senior commanders. Iran retaliated with a barrage of drones and missiles, most of which were intercepted by Israel and allied forces. Subsequent Israeli strikes on Iranian nuclear and military sites had drawn warnings from Tehran of a "crushing response."

Diplomatic Efforts

A senior US official, speaking on condition of anonymity, said Washington had "strongly urged" Israel to de-escalate, while offering additional security guarantees. Meanwhile, Gulf states, particularly Qatar and the UAE, had been shuttling messages between the two sides. “The backchannel was critical,” said a regional diplomat. “Both sides realized they were one miscalculation away from a catastrophic war.”

What Comes Next

While the halt is in effect, there are no guarantees of a lasting truce. Israeli officials caution that the military remains on high alert, and Iran’s proxy forces in Syria, Lebanon, and Iraq could still act independently. A spokesperson for the Israeli Prime Minister’s office declined to comment on the record. Attempts to reach Iranian officials for comment were unsuccessful.

Correction: An earlier version of this article misstated the timing of the halt. It began Thursday evening, not Wednesday.