Trump's Warning Sends Markets into Turmoil as Iran-Israel Tensions Escalate

U.S. President Donald Trump issued a stark warning on Monday, urging all individuals to immediately evacuate Tehran, the capital of Iran. This urgent call came just hours after he had pressed Iran's leadership to sign a nuclear agreement that would limit its nuclear capabilities. Concurrently, Israel indicated that its military strikes against Iran would persist, further escalating tensions in the region.

Trump, who was attending the G7 summit in Alberta, Canada, took to social media to express his concerns. "Iran should sign the 'agreement' I have proposed," he wrote. "It's a tragedy, a real catastrophe. In short: Iran cannot have nuclear weapons. I have said it over and over again! Everyone should evacuate Tehran immediately!" This statement followed a meeting where Trump had mentioned that Iran was seeking a deal, adding cryptically, "I leave here, and we will do something." However, he did not provide further details.

It remains unclear whether Trump was aware of potential Israeli plans to launch new strikes on Tehran, a city with a population exceeding 9 million. Earlier, Israel had warned residents of a community in Tehran to evacuate, and videos showed severe traffic congestion as people attempted to leave. Shortly after Trump's post, the Iranian Fars News Agency reported multiple explosions in the eastern part of the city.

Trump's remarks sent shockwaves through the market, causing U.S. stock index futures to dip slightly. Meanwhile, oil contracts erased earlier losses. Israeli officials claimed that since launching strikes on Friday, the Israeli military had gained control over most of Iran's airspace and had severely damaged key facilities related to Iran's missile and nuclear programs. This raised concerns about the potential for a broader conflict in the Middle East.

Israeli Prime Minister Benjamin Netanyahu, in a press conference, stated, "They want a ceasefire and to continue producing lethal weapons, including nuclear weapons that threaten our existence, and ballistic missiles. But we are determined to destroy these two threats." He added that while other means to achieve this would be preferable, Israel had given Iran 60 days before launching its strikes. This statement preceded Trump's latest comments.

Iran, through unofficial channels, expressed a willingness to de-escalate tensions with Israel and restart nuclear talks with the U.S., provided that Washington did not participate in Israeli strikes. This information was relayed through intermediaries such as Qatar, Saudi Arabia, and Oman. In response to these developments, oil prices initially fell, with Brent crude futures dropping by approximately 4%. U.S. Treasury prices also reduced earlier declines, while European bond prices rose.

Iranian Foreign Minister Abbas Araghchi, in a phone call with European officials, emphasized that Iran had never left the negotiating table. However, he stressed that the current priority was to respond effectively to Israel's aggression. The conflict showed no signs of abating, with Iran launching waves of drones and missiles in the past 24 hours, and Israel continuing its strikes on Tehran, resulting in the death of a senior military official and the destruction of a state television building.

As Trump spoke in Canada, a semi-official Iranian news agency quoted a high-ranking security official stating that Iran was prepared to deliver a "crushing blow" to Israel in response to recent attacks on Iranian cities and targets. Shortly after, Israel reported additional missile launches and sounded air raid sirens, though the alert was later lifted with no new reports of missile strikes.

In a phone conversation with Turkish President Recep Tayyip Erdogan, Iranian President Masoud Pezeshkian reiterated that his country would respond to Israel's continued aggression. "We do not want the conflict to escalate, but we will respond to any attack on Iranian territory in a way that will make Israel regret it," he said.

According to the Iranian government, 224 people have been killed in Iran since Friday, with the majority being civilians. The Israeli government's press office reported that Iranian attacks had resulted in 24 deaths and 592 injuries in Israel. Israeli Strategic Affairs Minister Ron Dermer, in an interview, stated that Israel's actions were "ahead of schedule" but declined to specify how long the conflict was expected to last. "We will take action to eliminate these two threats," he said, referring to Iran's missiles and nuclear program. "Whether Iran decides to meet with the U.S. and accept the terms they should have accepted a month, two weeks, or two months ago, that is up to Iran."

Netanyahu, in an interview with ABC News, stated that his military was seeking to end what he described as a half-century-long conflict and did not rule out targeting Iran's Supreme Leader, Ayatollah Ali Khamenei, to achieve this goal. He also emphasized that supporting Israel's efforts to halt Iran's nuclear program aligned with Washington's interests.