Trump pauses strikes on Iran after Saudi, UAE appeal; stocks rise

On May 18, President Trump paused planned strikes on Iran after requests from the Saudi crown prince and the president of the United Arab Emirates to delay while high-level negotiations proceed. The president posted on Truth Social that he would not go forward with the immediate military strike and had been scheduled to meet his war cabinet the next day to discuss further action.

The announcement followed a firm rejection by Iran of a recent diplomatic proposal earlier in the day. Markets had priced in a sharp escalation and traders moved to hedge against the risk of sudden hostilities.

U.S. stocks rose after the pause. The S&P 500 erased most intraday losses and retested the 7,400 level within hours. Buyers returned to equities as the near-term military tail risk eased.

Oil markets swung sharply. U.S. crude briefly approached $110 per barrel in early trading before selling pressure pushed prices lower. Traders noted intraday resistance in the $106-$110 range and larger channel highs near $117-$120. Near-term support clustered around $98-$100, with psychological levels near $90.

The U.S. dollar index fell after failing to hold above its 50-hour moving average and slipped back below 99. Copper and silver posted the clearest gains among metals as risk appetite improved.

Traders will monitor diplomatic statements from regional leaders and U.S. policy signals for further market direction, along with oil technical levels. Earlier in the session, trading flows reflected concern about a potential military response; the pause removed the immediate military tail risk.