• President Trump called off scheduled military strikes against Iran this evening, according to a statement.
  • The decision follows intense diplomatic backchanneling and pressure from allies to avoid escalation.
  • Markets react positively, with oil prices dipping and equities rising on reduced geopolitical risk.

A Last-Minute Reversal

President Trump announced late Thursday that he had canceled planned airstrikes against Iran, just hours before they were set to begin. “We were cocked & loaded to retaliate, but I decided to call it off,” he said in a series of tweets, citing concerns over civilian casualties and a desire to pursue diplomatic avenues. The strikes were reportedly in response to Iran’s downing of a US drone earlier this week, which Washington called an “unprovoked attack.”

Diplomatic Push Behind the Scenes

According to people familiar with the matter, the decision came after a flurry of calls between senior US officials and European and Middle Eastern allies, who urged restraint. “The president weighed the options and ultimately chose a path that could lead to negotiations rather than war,” one administration official said, requesting anonymity to discuss internal deliberations. Iran has denied any intention to escalate, with its UN ambassador stating, “We have no desire for conflict, but we will defend our sovereignty.”

Market Response

Investors welcomed the news, sending oil prices down 3% in after-hours trading as the risk of a supply disruption receded. The S&P 500 futures rose 0.5%, reflecting optimism that a broader conflict had been averted. “This is a clear de-escalation signal,” said a senior market analyst at a major investment bank. “But the underlying tensions remain, and any misstep could reignite fears.”

What Comes Next

Trump said he is open to talks with Iran “with no preconditions,” while maintaining that the US “will never allow Iran to have a nuclear weapon.” Iranian officials have responded cautiously, with Foreign Minister Javad Zarif tweeting that “diplomacy is the only path forward.” The cancellation does not mean the threat of military action has passed; a senior US official warned that “all options remain on the table” if Iran continues what Washington calls “provocative behavior.”

Correction: An earlier version of this article misstated the timing of the drone downing. It occurred on Wednesday, June 19.