The US dollar hovered near a one-month high on Tuesday as traders weighed the possibility of another Federal Reserve rate hike, even as falling oil prices following the pause in US attacks on Iran eased some inflation concerns.
The dollar index edged up 0.03% to 101.55, while Brent's recent decline helped ease pressure on inflation expectations.
Treasury yields, however, retreated only modestly, suggesting markets remain cautious ahead of the Fed's upcoming meeting.
A screen grab from a video that appears to show security forces at Isfahan's Alikhani Square shortly before the execution of two protesters, early hours of Tuesday July 28, 2026
Two protesters were executed early Tuesday amid heavy security deployment around Isfahan's Alikhani Square, where an scaffold had been erected and witnesses reported clashes between guards and people who gathered overnight amid fears of further executions.
Iran's judiciary news agency Mizan identified the men as Amirhossein Safari and Abolfazl Sepahi, saying the sentences were carried out early Tuesday local time.
The executions followed hours of growing concern after reports that an iron scaffold had been erected in Alikhani Square, where protests erupted on January 8.
Witness accounts circulating on social media described the area as being under heavy security throughout Monday night, with some reporting brief confrontations between security forces and people gathered near the square. Iran International could not independently verify the reports.
Twelve young men convicted in what became known as the Alikhani Square case were sentenced to death. Two of them—Golmohammad Mohammadi and Erfan Esfandiari—were executed on July 19.
Before the executions, a source close to Safari's family told Iran International that relatives had been summoned to Isfahan Central Prison for what they believed could be a final visit.
Iranian authorities accuse the defendants of involvement in the killing of four security personnel, as well as arson and vandalism during the January protests. Officials say four members of the Basij militia and Special Unit forces were killed during clashes in the area.
UN had urged halt to executions
Earlier on Monday, UN experts led by Mai Sato, the UN Special Rapporteur on the situation of human rights in Iran, urged the authorities to halt the executions of the ten remaining defendants.
"Sentencing 12 people to death in one hearing, in a closed courtroom and without clarity as to each defendant's individual responsibility violates established fair trial standards," the experts said.
They said the defendants, aged from their late teens to their early twenties, were reportedly subjected to arbitrary detention, enforced disappearance and, in some cases, ill-treatment.
According to the experts, the convictions relied heavily on confessions broadcast on state television, while Revolutionary Court hearings were held behind closed doors and the judgments were never made public.
Among those still facing execution is Shervin Bagherian Jebeli, who turned 18 only days before his arrest.
Iran's state television broadcast footage of Jebeli confessing to violence against security officers within a week of his detention and before any trial, the experts said.
The executions bring the number of people put to death in the Alikhani Square case to four, leaving eight others still under sentence of death despite mounting international calls for Iran to halt the executions.
Iran displays Zolfaghar ballistic missiles during a state-organised event at Tehran's Azadi Square, July 25, 2026
The pause in US airstrikes has opened a new debate in Tehran over whether the military lull should be used to revive diplomacy or intensify pressure on Washington before another round of fighting begins.
Hardline commentators argue the United States paused its campaign because military pressure and disruptions to regional energy supplies have exposed American vulnerabilities.
Moderate and pragmatist voices, meanwhile, see a narrow window to pursue indirect diplomacy before renewed fighting further weakens Iran's economy.
The debate comes as indirect diplomacy appears to be regaining momentum after three nights without direct US or Iranian attacks.
President Donald Trump told supporters in Michigan on Monday that "very friendly negotiations" with Tehran were underway, while warning that "you got to beat them, and we'll beat the hell out of them" if diplomacy failed.
Tehran, however, has continued to portray the lull as temporary. Iran's joint military command said the US naval blockade amounted to an expansion of the conflict, accusing Washington of threatening Iranian commercial vessels and oil tankers in Iran's territorial waters over the past three days.
Outside political circles, public reactions have been more cautious than optimistic. Many Iranians reportedly interpret the sudden quiet as evidence of behind-the-scenes diplomacy rather than a genuine breakthrough, with some saying they remained unable to sleep despite the absence of airstrikes.
Official statements have also avoided describing the lull as a "ceasefire," instead referring to it as a "pause" or "hold," reflecting Tehran's continued distrust of US intentions.
For hardliners, that makes negotiations even more dangerous.
The conservative newspaper Kayhan urged the Foreign Ministry to "formally declare the end of all indirect diplomatic communications and backchannel negotiations," arguing that nearly three weeks of fighting had shown Washington only moderates its military pressure when global energy supplies come under threat.
The paper argued the pause reflected dwindling US precision-guided munitions rather than any diplomatic opening.
"The brief pause in nighttime airstrikes is not a signal of American goodwill or diplomatic flexibility—it is a tactical breathing space meant to allow the enemy to replenish depleted precision munitions and distract Tehran from exercising its strategic leverage."
The IRGC-linked newspaper Javan advanced a similar argument, saying US offensive capabilities were showing signs of "structural fatigue" and warning that any hesitation would allow Washington to rebuild regional air-defence networks and supply lines.
It also called for a forceful response to what it described as attempts to expand pressure into the Caspian Sea through recent attacks on Iranian shipping.
Moderate outlets drew almost the opposite conclusion.
Government-aligned Etemad argued that every night without airstrikes represented a crucial opportunity to prevent further deterioration in municipal services, inflation and currency markets, urging officials to make full use of regional mediation efforts, particularly those led by Oman.
Economic daily Donya-ye-Eghtesad likewise described the lull as an opportunity for indirect de-escalation that could help stabilise foreign exchange and gold markets.
Moderate Shargh, meanwhile, warned against opening a new maritime front following the reported attack on Iranian shipping in the Caspian Sea, arguing that escalating the confrontation northwards would only deepen Iran's economic isolation and threaten critical trade corridors.
Perhaps the mood was best captured by Etemad, whose front-page headline distilled both the opportunity and the uncertainty confronting Iran's leadership: "Diplomacy in the enclosure of distrust."
Amirhossein Safari and cousins Alireza and Abolfazl Sepahi (right to left) have been sentenced to death following their arrest during the widespread protests in Iran in January
An iron scaffold erected Monday in the central Iranian city of Isfahan has raised fears that authorities are preparing to publicly execute more protesters arrested during January's nationwide unrest, sources told Iran International.
The scaffold was installed in Alikhani Square, where protests erupted on January 8.
Twelve young men convicted in what became known as the Alikhani Square case were sentenced to death. Two of them—Golmohammad Mohammadi and Erfan Esfandiari—were executed on July 19.
Witness accounts circulating on social media described Alikhani Square as being under heavy security on Monday night.
A source close to the family of Amirhossein Safari, another defendant in the case, told Iran International that relatives had been summoned to Isfahan Central Prison for what they believed could be a final visit.
The concerns were echoed by prominent Iranian activist Mehdi Mahmoudian, who wrote on X that several families of the ten remaining death-row prisoners in the Alikhani Square case had also been instructed to report to the prison for final visits.
Mahmoudian identified cousins Alireza Sepahi and Abolfazl Sepahi among those facing what he described as an imminent risk of execution. He also noted that two other defendants in the case had already been executed.
The visible deployment of security forces around the scaffold has further fuelled fears that additional executions could be carried out publicly.
Iranian authorities accuse the defendants of involvement in the killing of four security personnel, as well as arson and vandalism during the January protests. Officials say four members of the Basij militia and Special Unit forces were killed during clashes in the area.
UN condemns death sentences
Earlier on Monday, UN experts led by Mai Sato, the UN Special Rapporteur on the situation of human rights in Iran, urged the authorities to halt the executions of the ten remaining defendants.
"Sentencing 12 people to death in one hearing, in a closed courtroom and without clarity as to each defendant's individual responsibility violates established fair trial standards," the experts said.
They said the defendants, aged from their late teens to their early twenties, were reportedly subjected to arbitrary detention, enforced disappearance and, in some cases, ill-treatment.
According to the experts, the convictions relied heavily on confessions broadcast on state television, while Revolutionary Court hearings were held behind closed doors and the judgments were never made public.
Among those still facing execution is Shervin Bagherian Jebeli, who turned 18 only days before his arrest.
Iran’s state television broadcast footage of Jebeli confessing to violence against security officers within a week of his detention and before any trial, the experts said.
They added that Jebeli appeared unaware of the meaning of the capital charge against him—moharebeh, or "enmity against God"—raising concerns that he had not had access to legal counsel of his own choosing.
"Confessions obtained under coercion must never be admitted as evidence, and broadcasting them before trial violates the presumption of innocence," the experts said.
Mahmoudian said the Alikhani Square case, like many other political and security prosecutions in Iran, had been marked by serious legal irregularities, denial of fair trial guarantees and widespread humanitarian concerns.
With a scaffold now standing in Alikhani Square and families reporting final prison visits, relatives fear the remaining death sentences could soon be carried out despite mounting international pressure.
Pedestrians walk beneath a state-sponsored billboard depicting Donald Trump in a coffin in downtown Tehran, Iran, July 23, 2026
The suspension of US and Iranian attacks has revived hopes for diplomacy, but in Tehran the military lull has exposed a widening divide over whether the Islamic Republic should negotiate with Washington or press what hardliners see as a battlefield advantage.
Deputy Parliament Speaker Hamidreza Haji Babai made that resistance explicit on Monday, telling lawmakers that Iran would "never reach an understanding with the United States."
"We should not allow America to wage war whenever it wants and declare a ceasefire whenever it wants," he said during a virtual parliamentary session.
Former vice president Mohsen Mansouri, who served under the late President Ebrahim Raisi, voiced similar opposition in a social media post, arguing that Iran was discussing negotiations precisely when its military position had strengthened.
"We struck several ships, closed the strait and fought even harder than before. An arrow set Aramco ablaze, oil prices rose, and Iran's power became more evident than ever," he wrote.
"Why is it that just when our position is stronger and the enemy is more desperate, some immediately begin talking about negotiations, a ceasefire and reopening the strait?"
He added: "Do not restart this flawed cycle. The path to peace does not pass through negotiations and agreements. Struggle, jihad, vengeance and resistance are the road to peace."
The hardline pushback comes despite mounting signs that indirect diplomacy has resumed.
President Donald Trump said Monday that Washington was engaged in "very serious negotiations" with Iran while warning the United States would resume "very powerful military action" if diplomacy failed.
According to Turkey's Anadolu Agency, citing Pakistani sources, Pakistan and Qatar have intensified exchanges between Washington and Tehran.
The report said the mediators had proposed restoring the status quo that existed before July 9 through a two-week ceasefire, reopening maritime routes and resuming negotiations.
Iranian Foreign Ministry spokesman Esmaeil Baghaei confirmed in an interview with Austria's ORF television that Iran and the United States were exchanging messages through intermediaries.
At his weekly press briefing on Monday, however, he denied that Tehran had requested negotiations, insisting Iran had only been discussing shipping arrangements in the Strait of Hormuz with Oman.
Baghaei also rejected reports of a proposed ceasefire, saying Iran "has never allowed, and will never allow, the United States to determine the timing of war and peace."
Not everyone inside Iran shares the hardliners' view.
The reformist newspaper Etemad argued Monday that recent developments marked a turning point, with military confrontation giving way to deterrence and renewed diplomacy.
Former diplomat Abdolreza Faraji Rad wrote in Arman Emrooz that several developments—including the suspension of US attacks and Trump's latest remarks—suggested behind-the-scenes negotiations had either already produced results or were close to doing so.
He argued both sides still appeared to regard their earlier memorandum of understanding as valid.
Others dismissed that assessment.
Fada-Hossein Maleki, a member of parliament's National Security and Foreign Policy Committee, told the Iranian Labour News Agency (ILNA) that the reduction in US military operations reflected the impact of Iranian attacks on American logistical and operational infrastructure rather than diplomatic contacts.
"Iran has entered the offensive phase," he said. "In the offensive phase, there is certainly no discussion of negotiations."
The United States halted its nightly strikes on Friday after nearly two weeks of attacks, while Iran has not launched further strikes on US bases in the region since shortly after Washington's final operation.
Whether the lull develops into renewed diplomacy or merely precedes another round of fighting remains uncertain.
What has become increasingly clear, however, is that the military pause has opened a new political battle inside Tehran over whether Iran should negotiate from what some see as a position of strength or continue pressing its advantage on the battlefield.
Iranian social media users and news outlets have praised archaeologist Hamideh Choubak after Alamut Castle was added to UNESCO’s World Heritage List, highlighting her 25 years of work excavating and protecting the historic site.
The UNESCO listing has drawn renewed attention to Choubak’s role in identifying, documenting and conserving the fortress complex, located 120 miles northwest of Tehran, and preparing it for World Heritage status.
Alamut Castle and Related Fortifications became Iran’s 30th UNESCO World Heritage property when it was inscribed on July 26 during the committee’s 48th session in Busan, South Korea.
Images of Choubak crying as the decision was announced were widely shared online, with users praising her decades-long commitment while criticizing the prominence given to government officials at the ceremony.
Zeinab Karimian, an Iranian journalist who formerly worked for the official news agency IRNA, said the inscription was the result of Choubak’s 25 years of “perseverance, yet once again, the front row was filled by male officials who will serve as ministers or deputy ministers for only a few years, while she remained in a corner.”
“History forgets the names of those who occupy the seats, but not those who devoted their lives to this land.”
Many social media users also praised Choubak as a symbol of professional dedication, saying the UNESCO listing had finally brought overdue recognition to decades of largely unseen work.
“I wish people like Dr. Hamideh Choubak could be multiplied—people who love this country’s land and heritage,” communications specialist Negar Arab wrote on X.
The Asr-e Iran news website also published a tribute to Choubak titled “25 years of effort and love for Iran’s cultural heritage.”
The outlet said she had devoted much of her career to researching and protecting Alamut, describing the UNESCO decision as the culmination of years of work.
“Alamut’s inscription may be only a piece of news, but for a woman who devoted more than a quarter of a century of her life to this mountain and fortress, this moment marks the end of a long journey and the beginning of Alamut’s lasting place in global memory,” it wrote.
Twenty-five years at Alamut
Choubak began archaeological excavations at Alamut Castle in 2001.
Her research continued over 25 years and included 16 excavation seasons at the main fortress, surrounding areas and several associated castles.
Her team uncovered buried sections of the complex and identified the functions of different structures.
The excavations revealed the castle’s prison, main entrance, observatory and central courtyard.
Researchers also identified Molasara, believed to have been used by Hassan-i Sabbah and other Ismaili leaders, as well as storage facilities, irrigation systems and communication routes.
Studies of six neighboring castles indicated that the fortifications had operated as an integrated network.
Botanical research conducted during the excavations also challenged some common accounts about the use of hashish during Hassan-i Sabbah’s era.
Choubak said the site had been reduced to little more than a mound of earth after years of erosion and neglect when excavations began.
Only parts of its walls remained visible.
Over the following decades, the main structures were identified, documented, conserved and restored as part of efforts to prepare Alamut for UNESCO recognition.
Protecting Alamut from development
Choubak was also praised for opposing projects that could have damaged the site and its surrounding historical landscape.
She resisted plans to construct a road, a cable car and other developments within the protected area, and sought to prevent unauthorized land occupation and construction.
Choubak, who serves as director of the Alamut World Heritage base, has said the complex was more than a military fortress.
It was also a center of government, science and culture during the Ismaili period, she said.
She pointed to the presence of scholars including Nasir al-Din al-Tusi, as well as the castle’s library and scientific activities, as evidence of its broader cultural importance.
Asr-e Iran also highlighted Choubak’s archaeological work in the ancient city of Jiroft and the Jazmourian region.
Those excavations led to the identification of a mosque, bazaar, public square, cemetery, water-distribution network and industrial workshops.
Choubak, born in 1952 in Bushehr in southern Iran, is an archaeologist specializing in the Islamic period. She studied archaeology at the University of Tehran, completing her master’s degree in 1983 with a thesis on Islamic ceramics, before earning a PhD in Islamic archaeology from Tarbiat Modares University.
Her career has included work at Iran’s Archaeological Center, the Glassware and Ceramic Museum, the Tehran Cultural Heritage Center and the Research Institute of Archaeology.
Choubak has participated in and led numerous excavations across Iran, including at Rey, Tepe Hissar, Hormuz, Jiroft and Kish.
