The Trump administration has distanced itself from Israel's recent military actions against Iran. These strikes are expected to complicate President Donald Trump's efforts to negotiate a nuclear deal with Tehran.
What Happened: The Trump administration sought to separate the United States from Israel's recent military actions against Iran, according to a report by Reuters on Thursday.
Israel claimed responsibility for targeting Iranian nuclear sites to prevent the development of atomic weapons. Meanwhile, the U.S. is preparing for another round of talks on Iran's uranium enrichment program scheduled for Sunday.
Marco Rubio, the Secretary of State and National Security Adviser, emphasized that Israel acted independently. He stated, "We are not involved in strikes against Iran and our top priority is protecting American forces in the region." Rubio also warned Iran against targeting U.S. interests or personnel.
"Israel advised us that they believe this action was necessary for its self-defense," Rubio added.
Just before the strikes, Trump advocated for a diplomatic resolution, although he acknowledged that military action against Iran "could very well happen." The International Atomic Energy Agency declared Iran in violation of its non-proliferation obligations, intensifying the situation.
Despite tensions, the U.S. and Iran announced plans for further discussions in Oman, with a U.S. official confirming that talks are still intended for Sunday.
Why It Matters: The geopolitical tensions in the Middle East have had a significant impact on global markets. Following Israel's pre-emptive strike against Iran, U.S. stock futures experienced a decline. The S&P 500 Futures dropped 1.49%, while Nasdaq and Dow Jones Futures also saw declines of 1.59% and 1.36%, respectively.
Oil prices surged by 8%, reflecting the market's response to the escalating conflict.
Gold and its cryptocurrency derivatives saw a rise as investors sought refuge. Spot gold increased by 1.20% to $3,427.51 per ounce, marking its highest level in over a month.
Gold futures also climbed 1.63% to $3,457.70, underscoring the heightened demand for safe-haven assets amid the ongoing tensions.