United States President Donald Trump said Friday that Israel is no longer allowed to conduct airstrikes in Lebanon, a move he said was ordered by Washington and aimed at reinforcing a fragile ceasefire in the region.
The comments, published on his Truth Social account, coincided with a rally on Wall Street as easing Middle East tensions encouraged traders to shift back into equities and away from defensive assets.
Washington asserts tighter control over Israel operations
Trump said the United States had instructed Israel to halt air operations over Lebanon, describing it as a direct restriction from Washington on a key ally’s military actions.
The directive is intended to support a 10-day ceasefire that began at midnight after weeks of heavy fighting between Israel and Hezbollah. The clashes have reportedly displaced more than a million people in Lebanon and raised fears of a broader regional war.
By curbing Israel’s air campaign, Washington is signaling a more hands-on role in managing the conflict and in containing potential escalation along the Israel–Lebanon border.
U.S. to take “nuclear dust” from Iran under separate understanding
Trump also said the United States would obtain what he called “nuclear dust” from Iran, a phrase he used to describe enriched material linked to prior U.S. B‑2 bomber operations.
He framed the move as part of a U.S. strategy to remove enriched uranium from Iran and block any future nuclear weapons program. He stressed that the arrangement would not involve any cash payments and that Lebanon was not part of this understanding.
The reported uranium-related deal is tied to a separate two-week truce between the United States and Iran. That truce, which helped cool tensions in recent days, is due to expire next week, leaving markets sensitive to any signal that talks could break down.
Separate track for Lebanon and Hezbollah
Trump said Washington plans to engage Lebanon on a separate diplomatic track focused on Hezbollah. The aim is to address security concerns along the Israel–Lebanon frontier without linking those talks directly to the Iran nuclear file.
His remarks follow a period of intense cross-border fire between Israel and Hezbollah that had threatened to spill over into a wider conflict before the current ceasefire took hold.
Equities advance as geopolitical fears ease
U.S. equity markets strengthened through Friday’s session as traders reacted to the easing tensions.
- The Dow Jones Industrial Average rose about 1.4–1.5%
- The S&P 500 gained around 1%
- The Nasdaq Composite also added roughly 1%, extending its winning streak to 12 sessions, its longest run since 2009
Risk-oriented trading dominated the day, with capital flowing out of safer holdings and into stocks, particularly in growth and technology names.
Oil drops as conflict premium unwinds
Energy markets reflected the shift in sentiment. Brent crude fell 3.2% to $96.25 a barrel, reversing part of a conflict-driven rally that had lifted prices about 40% since late February.
The pullback suggests traders are beginning to price out some of the geopolitical risk premium that had built up on fears of supply disruptions from a wider regional war.
Outlook: rally tied to fragile diplomatic progress
Market gains remain closely tied to the durability of the current ceasefires and diplomatic tracks.
The 10-day Israel–Hezbollah truce and the separate two-week U.S.–Iran understanding are both temporary. Any sign of breakdown in negotiations, especially as the U.S.–Iran truce nears expiry, could quickly revive volatility and reverse recent equity gains.
For now, sentiment favors risk assets, but the backdrop argues for flexibility: positioning that can benefit from improved conditions while remaining ready to pivot back toward defensive strategies if talks stall or violence resumes.
Curious how geopolitics shape crypto? Learn how macro trends move digital assets in this crypto and DeFi outlook.
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