Hours after threatening “very hard” action against Iran, President Trump reversed course on June 11, announcing the cancellation of planned airstrikes via Truth Social. His reasoning: high-level talks had made significant progress, with reported approval from Iranian leadership.
Financial markets didn’t need to be told twice. The NASDAQ climbed nearly 1.8% in early trading, and risk assets across the board caught a bid as the threat of a full-blown military escalation receded, at least temporarily.
From threats to talks in a matter of hours
The cancellation marks at least the second time in recent months that planned US military action against Iran was called off, following a similar reversal in May 2026 when negotiations reportedly showed progress.
Regional intermediaries, particularly Gulf states, have been facilitating broader talks between Washington and Tehran. Mediators reported breakthroughs on critical issues including the Strait of Hormuz, a chokepoint for roughly a fifth of global oil transit, and Iran’s nuclear program.
