Hopes for a ceasefire between Israel and Iran took a blow after U.S. President Donald Trump made inflammatory posts on Truth Social, suggesting that diplomacy was off the table and hinting at a military response. Trump, who left the G7 summit early to return to Washington, dismissed the idea of a ceasefire, claiming the situation was “much bigger,” and demanded “unconditional surrender” from Iran’s Supreme Leader Ayatollah Ali Khamenei, whom he described as an “easy target.”
Sources told NBC News that Trump is actively weighing a U.S. military strike against Iran, having held discussions with his national security team. His aggressive language and threats immediately impacted global markets. U.S. stocks fell sharply on Tuesday, with the S&P 500 dropping 0.84% and the Nasdaq down nearly 1%, while oil prices jumped over 4%, reflecting growing fears of a wider Middle East conflict.
Meanwhile, markets in Asia were mixed on Wednesday, with Japan’s Nikkei 225 rising slightly despite a surprising 1.7% drop in May exports. The decline marked the steepest fall in Japanese exports since September 2024 and was led by an 11.1% plunge in exports to the U.S. This came even as South Korea’s Kospi edged up and Hong Kong’s Hang Seng Index posted a notable decline.
Outside of geopolitics, the tech and crypto sectors made headlines. OpenAI CEO Sam Altman accused Meta of attempting to poach key AI talent with massive incentives, though none have reportedly left. On the regulatory front, the U.S. Senate passed the GENIUS Act, a landmark bill aimed at regulating stablecoins by introducing audits, reserve requirements, and anti-money laundering rules—potentially reshaping the U.S. crypto landscape.
Looking ahead, markets await the conclusion of the U.S. Federal Reserve’s policy meeting. While rates are expected to remain unchanged, investors are eager for guidance on inflation, future rate cuts, and Chair Jerome Powell’s response to growing political pressure. With markets already volatile, the Fed’s projections could add another layer of uncertainty to an already tense global environment.
Source: CNBC