Donald Trump Cancels Iran Strikes and Unveils Gaza Peace Plan

President Donald Trump canceled planned military strikes against Iran following pressure from Gulf allies to de-escalate. The decision, coupled with the announcement of a new Gaza peace plan, led to a sharp decline in oil prices, with Brent dropping to $60.98 per barrel. New negotiations with Iran are scheduled to begin Monday.

The announced Gaza peace plan aims to end a two-year conflict. The first phase involves the release of hostages and detainees and the withdrawal of Israeli troops to an agreed line. The Cabinet of Israel approved the framework on Friday following a Wednesday night agreement with Hamas. While Israeli troops began withdrawing from parts of Gaza, the Prime Minister's office expressed security concerns regarding the disarmament of Hamas and the future of Gaza's governance.

Simultaneously, the United States and Japan coordinated currency interventions to stabilize the yen, which Trump described as a "signal of friendship." In financial markets, the peace plan triggered early gains in Saudi Arabia's Tadawul and exchanges in Dubai and Abu Dhabi. Analysts are divided on the long-term economic impact; Nigel Green of the deVere Group predicts a rally in regional infrastructure, while Rachel Ziemba of Ziemba Insights suggests the plan will have minimal financial impact compared to Chinese oil demand and US pressure on Iran.