Iran military operations against Israel have ended, according to Fars News, which said Iran’s armed forces made the announcement on Monday. The report added that Tehran warned of harsher attacks if Israel resumes attacks on Lebanon.
The move came after a series of posts from Trump on Truth Social. He wrote that Israel and Iran must immediately stop shooting. He later said the two sides were looking for an immediate ceasefire.
Iran military operations and market reaction
The report helped lift risk assets and pushed oil prices lower as fears of a wider escalation eased. The source said the signals of an end had already been building before the confirmation.
However, the article said the Strait of Hormuz will remain closed and keep oil prices elevated. It also said the latest escalation is likely to extend the US-Iran stalemate.
The source also linked Friday’s market selloff to a very strong NFP number. It said the data acted as a wake-up call for hawkish Fed risk, rather than a Middle East trigger.
Iran military operations keep focus on the Fed
The article said the focus has now shifted to the Fed. It argued that monetary tightening during a negative supply shock is a poor mix for growth.
It added that markets could come under pressure if the Fed tightens further. The source closed by saying that if Trump does not end the situation soon, the Fed will do it for him.
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