Trump Sets Two-Week Deadline on Iran Strikes; Israel Hits Nuclear Sites

Geopolitical Tensions and Diplomacy - The U S President has a two-week window to decide on potential actions regarding Iran, opening a door for negotiations [1][2][3][11][12][13] - Diplomatic efforts are underway, with European ministers meeting Iranian counterparts in Geneva to discuss de-escalation and monitoring Iran's nuclear program [2][20][21][22] - The conflict between Israel and Iran has lessened in the last 24 hours, but the war of words continues, with potential involvement of Iranian proxies like Hezbollah and Iraqi militias [14][17][18][19] Market Reactions and Analysis - Markets show relief as the U S stays on the sidelines, with European stocks recovering from losses and U S markets reopening after a holiday [4] - Brent crude oil prices initially doubled due to the conflict but later dropped more than 2% to $77 per barrel as safe-haven bids fade with the possibility of diplomacy [2][6][28] - Analysts suggest that a 20% move in oil prices has not had a bigger impact because the market anticipates ample supply from OPEC and U S shale drillers [29][30] - Central banks are in a difficult position due to geopolitical and trade uncertainties, leading to a cautious approach [31][32] Economic Trends and Indicators - The EU Economy Commissioner indicates progress in trade talks with the U S, emphasizing the protection of EU economic interests [36][37] - A shift from consumer companies to defense is observed in the European economy, with Rheinmetall replacing Kering in the Euro Stoxx 50, reflecting deglobalization and reassuring trends [37][38][39][40] - SoftBank is pitching a $1 trillion AI hub to TSMC, seeking tax breaks to establish a manufacturing hub in the United States [27]