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U.S.-Iran Conflict: Quiet Holds During Funeral Pause as U.S. Permits Oil Sales

Diplomatic talks are paused for the funeral of Ali Khamenei as the U.S. signals a major policy shift by allowing Iranian oil sales.

July 5, 2026 at 1:00 PM

The U.S.-Iran conflict has entered a period of relative calm as both nations observe a tactical ceasefire during the state funeral for Supreme Leader Ali Khamenei. President Trump stated that the U.S. would not engage in military action during the mourning period, emphasizing a desire to maintain the current pause in hostilities. While IRGC officials have issued warnings against any attacks during the proceedings, no new military strikes or proxy engagements have been reported in the last 24 hours. In a significant diplomatic development, the U.S. has granted Iran permission to sell oil, marking a departure from previous blockade policies. This economic shift is viewed as a strategic move to stabilize global markets and provide an incentive for continued peace negotiations. Current indirect talks, facilitated by Qatar and Pakistan, are temporarily suspended but are scheduled to resume on July 11. The venue for future negotiations has reportedly shifted toward Islamabad, Pakistan, signaling a move away from traditional Western neutral sites like Switzerland. While Vice President Vance noted that formal nuclear discussions have not yet begun, President Trump has expressed optimism regarding the trajectory of denuclearization. Despite the diplomatic thaw, internal pressures remain high within Iran, with recent reports highlighting widespread domestic protests throughout the month of June.

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