President Trump has stated he will cancel military strikes against Iran if a deal is reached, emphasizing that negotiations are ongoing Zhitong. While maintaining that the U.S. retains the option for further escalation, Trump noted that his previous suspension of strikes successfully lowered oil prices and boosted equity markets . He has characterized a deal as the ‘smarter strategy’ but warned that time is running out for a quick resolution .
So, Trump is basically admitting the ‘maximum pressure’ campaign is now a market management tool. By linking the cancellation of strikes to a potential deal, he’s trying to bake a ‘peace dividend’ into the markets—he even explicitly took credit for lower oil prices and the stock rally following his last pause . But don’t be fooled by the ‘smart strategy’ talk; he’s still holding energy facilities as the ultimate target if talks fail .
The signal here is that he’s desperate for a win that keeps inflation (oil) down, but his ‘speedy resolution or give up’ ultimatum suggests a volatile window ahead . The market might be overpricing the likelihood of a smooth deal given the historical pushback from both Iran and Israel . Bottom line: we should be wary of the relief rally in equities. I’d look at hedging with long-volatility on crude; if this ‘quick’ window closes without a signature, the pivot back to targeting energy infrastructure will send oil prices vertical.
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