Trump Cancels Massive Iran Strikes to Facilitate Peace Talks

Donald Trump cancelled planned military strikes against Iran that he described as being on a scale never seen since World War II. The decision followed requests from Iran and the leaders of Qatar, Saudi Arabia, and the United Arab Emirates. Trump stated there is a "good chance" of progress in negotiations to end months of fighting, though he indicated the halt is contingent on Iran rapidly finalizing a deal.

Diplomatic efforts are currently centered on breaking a deadlock regarding transit fees and the management of the Strait of Hormuz to reopen the waterway. While the U.S. maintains it controls the strait, the Iranian Foreign Ministry refuted claims that a deal is imminent.

The prospect of peace talks triggered a sharp plunge in crude oil prices, which eased inflation and interest rate concerns and boosted both U.S. and European stocks. Simultaneously, the U.S. government coordinated an intervention to support the Japanese Yen after it hit a 40-year low, with the Federal Reserve Bank of New York selling Euros to purchase Yen. Treasury Secretary Scott Bessent indicated the U.S. is willing to intervene further in foreign exchange markets if necessary.