Tel Aviv, Israel. Iran launched multiple waves of missiles at Israel, the Israeli military said, after U.S. President Donald Trump postponed a threat to bomb Iran’s power grid citing productive talks with Iranian officials. Air raid sirens sounded in parts of Israel, including Tel Aviv, and no deaths were reported.
Missile attacks and interceptions
The missiles triggered air raid sirens in parts of Israel, including Tel Aviv where blasts from interceptions were heard. In one attack, homes in northern Israel were damaged by falling debris following an interception, with no deaths reported.
Trump cites talks and delays planned strike
Trump wrote on his Truth Social platform on Monday that the U.S. and Iran had held “very good and productive” conversations about a “complete and total resolution of hostilities in the Middle East”. He said he was postponing for five days a plan to hit Iran’s energy grid.
His announcement sent share prices higher and oil prices sharply lower to below $100 a barrel, reversing a market swoon caused by his weekend threats and Iran’s vows to respond.
Iranian speaker denies negotiations
On Tuesday, Iran’s parliament speaker Mohammad Baqer Qalibaf, whom an Israeli official and two other sources familiar with the matter said was the interlocutor in the talks on the Iranian side, said no negotiations had taken place.
“No negotiations have been held with the U.S., and fakenews is used to manipulate the financial and oil markets and escape the quagmire in which the US and Israel are trapped,” he wrote on X.
IRGC statement and renewed threats
Iran’s elite Revolutionary Guards said they were launching fresh attacks on U.S. targets and described Trump’s words as “psychological operations” that were “worn out” and having no impact on Tehran’s fight.
Markets weigh conflicting signals and oil rebounds
Global markets rallied in relief overnight Monday after Trump added five days to his Saturday ultimatum for Iran to reopen the Strait of Hormuz within 48 hours. The strait is a conduit for about 20% of the world’s oil and liquefied natural gas.
On Tuesday, gains were under threat as markets weighed conflicting messages from Tehran and Washington. U.S. Treasury yields pushed higher and the dollar regained lost ground as the world continued to grapple with an energy shock tied to Iran’s threat to shipping in the strait.
Brent crude futures were up 4.2% to $104.21 a barrel, reversing some of their 10% slide from Monday, while U.S. crude rose 4.3% to $91.93 per barrel.
How do you think the conflicting statements from Washington and Tehran will affect markets in the coming days?