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Trump Calls Off Iran Strikes as Peace Framework Nears

Lower oil prices from revived USIran deal hopes lift stocks, easing inflation worries ahead of the Federal Reserve meeting.

Overview

  • President Donald Trump said he canceled planned strikes and that a USIran outline could be finalized soon, a move that sharply reduced the immediate military premium in markets.
  • The cancellation, which occurred Thursday, triggered a rapid fall in crude prices and sent major U.S. indexes higher with chip and AI‑related stocks leading the rebound.
  • SpaceX’s record IPO — priced at $135 a share and reported to raise about $75 billion — added a separate boost to sentiment when the stock jumped roughly 19% on its debut.
  • Analysts caution the diplomatic picture remains conditional because Iran’s security bodies, including the IRGC, and formal approval steps must still sign off on any memorandum of understanding.
  • Lower energy costs could ease near‑term inflation and relieve pressure on interest‑rate expectations, but traders say Fed guidance and upcoming economic data will determine whether the rally holds.