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Markets Rebound as Hopes for Iran–U.S. Dialogue Ease Geopolitical Tensions

U.S. stock futures edged higher on Wednesday as signs of potential diplomatic movement in the Iran–U.S. standoff helped calm volatile markets. Futures tied to the S&P 500 rose about 0.3%, the Nasdaq 100 gained 0.5%, and Dow Jones Industrial Average futures added 0.2% after a turbulent prior session.  The shift in sentiment followed reports that Iran has quietly approached the United States to discuss terms for ending the escalating conflict , a development that helped cool fears of further disruption in global energy markets. This diplomatic signal contributed to a rebound after Tuesday’s sharp sell-off, when concerns over widening conflict and rising oil prices rattled investors.  The conflict, now in its fifth day, has seen continued strikes and mounting casualties, adding to market unease. Iran is preparing for the funeral of Supreme Leader Ali Khamenei, killed in recent attacks, while regional tensions remain high.  Despite the ongoing uncertainty, Wednesda...
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Trump Draws Red Line on West Bank Annexation

Palestinians, displaced by the Israeli military offensive, take shelter in a tent camp, in Zawaida in the central Gaza Strip, September 25, 2025. 

U.S. President Donald Trump declared on Thursday that he would not permit Israel to annex the West Bank, marking one of his clearest public breaks with Israeli Prime Minister Benjamin Netanyahu’s right-wing allies. Speaking from the Oval Office, Trump said firmly, “I will not allow Israel to annex the West Bank. Nope, I will not allow it. It’s not going to happen. There’s been enough. It’s time to stop now.”

The statement comes as Netanyahu faces mounting pressure from far-right members of his coalition to extend sovereignty over the occupied territory, a move that Arab leaders have warned could trigger severe regional consequences. Several Western nations, including France, Britain, Canada, and Australia, have recently recognized a Palestinian state, intensifying the debate over the future of the West Bank.

Roughly 700,000 Israeli settlers live among 2.7 million Palestinians in the West Bank and East Jerusalem, areas captured by Israel in the 1967 war. Most of the international community considers Israeli settlements there illegal under international law, though Israel disputes this.

Trump’s remarks coincided with the United Nations General Assembly in New York, where Netanyahu is scheduled to deliver an address. U.S. officials also presented a 21-point Middle East peace plan to regional leaders this week, signaling Washington’s push to end the ongoing Gaza conflict and revive prospects for a broader settlement.


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