Trump Says Talks With Iran Are Underway, as Airstrikes Continue

U.S. and Israeli airstrikes are ongoing while Iran is firing missiles at Israel even as President Trump claims talks are underway. The active strikes and missile exchanges materially raise the risk of broader regional escalation, likely driving risk-off flows into safe havens (gold, U.S. Treasuries) and upward pressure on oil, while increasing volatility across equities, FX, and credit. Portfolio managers should consider short-term hedges and monitor energy supply route disruption and rapid headline risk.

Analysis

U.S. and Israeli airstrikes are ongoing while Iran is firing missiles at Israel even as President Trump claims talks are underway. The active strikes and missile exchanges materially raise the risk of broader regional escalation, likely driving risk-off flows into safe havens (gold, U.S. Treasuries) and upward pressure on oil, while increasing volatility across equities, FX, and credit. Portfolio managers should consider short-term hedges and monitor energy supply route disruption and rapid headline risk.