Trump’s Posts Crush Hopes of an Israel-Iran Ceasefire
Hopes of a swift ceasefire between Israel and Iran were dashed by a series of social media posts from US President Donald Trump. As he departed early from the Group of Seven summit, Trump stated that it "certainly has nothing to do with a Cease Fire" and that he was involved in something "much bigger than that." The comments were made on his social media platform, Truth Social.
According to a report by CNBC, Trump’s posts brought US stocks lower and caused oil prices to surge more than 4% during Tuesday’s trading session. A weaker-than-expected US retail sales report in May also contributed to the heavy sentiment in markets. The Dow Jones Industrial Average shed 0.7%, the S&P 500 fell 0.84%, and the Nasdaq Composite was down 0.91%. The pan-European Stoxx 600 index lost 0.85% as regional bourses slipped.
The CNBC report also stated that Trump’s rhetoric on Iran ramped up, with the US President writing on Truth Social that the US knows "exactly" where Iran’s leader, Ayatollah Ali Khamenei, is "hiding," and demanded "UNCONDITIONAL SURRENDER!" This has raised concerns about the possibility of a US military strike against Iran, with current and former administration officials telling NBC News that it is one of the options Trump is considering.
The situation has also had an impact on the oil market, with the CEOs of TotalEnergies, Shell, and EnQuest telling CNBC that further attacks on critical energy infrastructure in Iran could have serious consequences for the global supply and prices of oil. Some shipowners are already steering clear of the strategically important Strait of Hormuz, according to the world’s largest shipping association.
In other news, the US Senate on Tuesday passed the GENIUS Act, a landmark crypto bill that establishes federal guardrails for US dollar-pegged stablecoins. The bill, which was reported by CNBC, also opens the door to a range of issuers, including banks, fintechs, and major retailers looking to launch their own stablecoins or integrate them into existing payment systems.
Meanwhile, shares of Regencell, an early-stage, Hong Kong-based bioscience company with no revenue, spiked 30% on Tuesday, having risen more than 58,000% in 2025 to hit $36 billion in market value. The company, which develops traditional Chinese medicine formulas, is the latest example of a speculative international stock attracting attention during summer trading.
As the Federal Reserve’s policy meeting concludes on Wednesday, investors are eagerly awaiting the central bank’s updated projections on interest rates and inflation. According to CNBC, markets are pricing in the next cut to come in September, which would be the one-year anniversary of a surprisingly aggressive half-percentage-point reduction the FOMC instituted amid concerns over the labor market.
The Federal Reserve’s Chair, Jerome Powell, will also answer questions from the media at a press conference, providing insight into the central bank’s thinking on monetary policy. As things stand heading into the meeting, it is unlikely that there will be any immediate movement on interest rates, but the Fed’s forecast and Powell’s comments could still move markets.
The CNBC report also noted that the era of US exceptionalism might be coming to an end, with global stocks vastly outperforming those in America year to date. According to the results of Bank of America’s latest fund manager survey, investors also think that global stocks will be the best-performing asset class over the next five years.
In conclusion, Trump’s social media posts have dashed hopes of a swift ceasefire between Israel and Iran, leading to increased tensions in the region and concerns about the possibility of a US military strike. The situation has also had an impact on the oil market and global stocks, with investors eagerly awaiting the Federal Reserve’s policy meeting and updated projections on interest rates and inflation. As reported by CNBC, the situation will continue to be closely watched by investors and market analysts in the coming days and weeks.
