Risk of all-out war grows
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Dual risks kept investors on edge ahead of markets reopening late on Sunday, from heightened prospects of a broad Middle East war to U.S.-wide protests against U.S. President Donald Trump that threatened more domestic chaos.
Israel’s attacks on Iran’s nuclear facilities risk pushing back the timeline for Federal Reserve interest-rate cuts as the US central bank waits to assess any potential impact on inflation, economists said.
Israel’s leader and President Trump appeared to bet they can persevere, but other world leaders warned of unintended outcomes in a volatile region.
Gold is shining as Treasurys remain under pressure — but it’s probably too soon to write off U.S. debt as a safe-haven asset.
The ongoing Israel Iran war has unleashed not only a massive aerial assault with missiles and drones causing heavy destruction in both the countries but could potentially impact global economy including India with whom the two have trade relations.
The country’s exports mostly come from Kharg Island in the Persian Gulf. But Israel’s energy facilities are also at risk.
Trump now faces a difficult balancing act between supporting Israeli strikes and salvaging fragile nuclear negotiations with Iran, which he emphasized on Friday remain a priority.
Israel says it has more attacks planned against Iran after a series of overnight strikes targeted Tehran’s nuclear program and shook global tensions. As Washington watches the fallout, President Donald Trump is continuing to push Tehran toward the negotiating table to come to a nuclear deal.