Iran and Israel announced on Monday that they had suspended military actions against one another after US President Donald Trump urged both sides to immediately cease hostilities. However, Tehran warned that it could resume attacks if Israel continued targeting Hezbollah positions in Lebanon.
The exchanges over the previous 24 hours represented the most significant direct confrontation between the two regional rivals since a ceasefire reached in April. The escalation had raised concerns about the potential impact on diplomatic efforts led by Washington to secure an agreement with Tehran aimed at ending the conflict that has persisted for more than three months.
Global oil markets reacted sharply to the developments, with prices initially climbing as much as 5 percent amid fears of wider instability. However, gains eased after Iran’s military announced that its initial phase of operations against Israel had concluded. Meanwhile, the US dollar retreated after reaching its strongest level in nearly two months.
According to a source familiar with the situation, Israel also decided to suspend its military operations against Iran, contributing to a temporary de-escalation in tensions.