Trump says US will get nuclear dust and that Israel is now prohibited from bombing Lebanon

Trump's comments suggesting U.S. involvement in Middle East security dynamics and a restriction on Israeli military action in Lebanon introduced geopolitical uncertainty, affecting risk sentiment toward regional assets. The transmission occurs through risk appetite and safe-haven flows, as heightened political instability in a volatile region prompts reassessment of exposure to Israeli and Lebanese-linked financial instruments. Israeli bonds and equities may face downward pressure due to perceived constraints on national security policy, while Lebanese debt and currency proxies could see speculative positioning on reduced conflict escalation. U.S. Treasury yields might edge lower if investors shift toward safe-haven assets amid escalation risks. Traders will watch upcoming U.S. State Department briefings for confirmation or clarification of official policy shifts regarding Middle East military engagement.

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