Trump to convene Cabinet meeting, as Iran threatens to retaliate after US strikes

President Donald Trump will convene a Cabinet meeting amid growing pressure to resolve the escalating conflict with Iran. The ceasefire between the US and Iran is under strain following threats by the Islamic Revolutionary Guard Corps to retaliate after the US conducted self-defense strikes on Iranian missile launch sites and boats near the Strait of Hormuz on Monday. In Lebanon, Israeli airstrikes killed at least 31 people on Tuesday, marking one of the deadliest days since the ceasefire took effect in April. The Israeli military targeted a road near Lebanon’s largest dam in the Bekaa Valley, raising concerns about potential damage to water infrastructure. Despite the truce agreed upon last month, clashes between Israel and Iran-backed Hezbollah have persisted daily. Global markets reacted to the developments with oil prices falling—Brent crude dropped 3.5% to $96.12 a barrel, and West Texas Intermediate slipped nearly 4% to $90.10—while stock futures rose on optimism for a Middle East peace deal. The S&P 500 hit a record high, boosted by gains in chipmakers like South Korea’s SK Hynix, which surpassed $1 trillion in market value. However, Hong Kong’s Hang Seng fell 1% amid doubts about a swift resolution to the conflict. The US and Iran continue negotiations toward a memorandum of understanding to lay the groundwork for a broader agreement. Despite lingering uncertainties, investors remain cautiously optimistic about a pathway to peace. Meanwhile, internet connectivity in Iran was partially restored after months of blackout, though Iranians expressed skepticism and defiance toward the limited access.