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Trump halts strikes and begins talks
U.S. President Donald Trump suspended the implementation of new military strikes on Iran and announced the start of diplomatic negotiations with Tehran. This came after he decided to delay a military operation that had been heavily prepared for, amid reports of potential understandings regarding the management of the Strait of Hormuz and Iranian nuclear de-escalation. The move followed calls from Saudi Arabia, the UAE, Qatar, and Iran, with expectations of reaching an agreement soon that could help de-escalate the tension. As a result, oil prices dropped significantly, with West Texas Intermediate crude futures falling by about 6%, and Brent crude futures decreasing by 5.16%. Despite the diplomatic progress, the risk of military escalation remains, as tensions in the region persist and investigations continue into the explosion near the Strait of Hormuz.
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