Iran targets Israel and Gulf Arab states even as Trump says US is in talks to end the war

Iranian missiles and drones struck targets in Israel and Gulf Arab states, raising the risk of regional escalation. U.S. President Trump said the U.S. is in talks with Iran to end the war, leaving the outlook uncertain and creating potential for either de‑escalation or further volatility. Investors should expect risk‑off flows, higher oil price risk and elevated volatility across EM and regional assets.

Analysis

Iranian missiles and drones struck targets in Israel and Gulf Arab states, raising the risk of regional escalation. U.S. President Trump said the U.S. is in talks with Iran to end the war, leaving the outlook uncertain and creating potential for either de‑escalation or further volatility. Investors should expect risk‑off flows, higher oil price risk and elevated volatility across EM and regional assets.