Trump Cancels Attacks on Iran as Global Markets Rally
A drop in oil prices eased inflation pressure on rates, leaving markets to rally despite remaining geopolitical and policy uncertainty.
Overview
- President Donald Trump said he canceled planned attacks and signaled a near‑term agreement with Iran, a move that sent a broad relief rally through stocks, bonds and currencies on Thursday.
- Oil prices fell sharply after the announcement, which helped push U.S. Treasury yields lower and weakened the dollar against major and emerging‑market currencies.
- Iran publicly denied signing or approving any deal with the United States, creating a direct contradiction that keeps the geopolitical outlook unsettled.
- U.S. producer prices for May rose more than expected, driven largely by energy, which renewed questions about inflation and the Federal Reserve’s policy path and capped the strength of the market rally.
- Bitcoin recovered modestly to the low‑$60,000s but stayed under pressure because U.S. spot bitcoin ETFs recorded multi‑week outflows even as Strategy announced a 1,550 BTC purchase and Brazilian assets rallied on the external risk‑on shift.