The U.S. has recalled its ambassador to Israel for consultations amid escalating tensions over Iran's nuclear programme, according to Israeli media. This diplomatic move signals heightened U.S. concern over potential Israeli military action against Iran, which could trigger broader regional conflict and disrupt energy markets. The development weighs on Israeli assets due to increased geopolitical risk premium, while Iranian assets may see short-term speculative support amid expectations of indirect sanctions relief or deterrence. The key transmission channel is risk appetite and regional stability, affecting bond yields, equity valuations, and shekel and rial liquidity in offshore markets. Traders will watch upcoming U.S.-European coordination statements and any IAEA reports on Iran’s uranium enrichment levels as near-term catalysts.
WASHINGTON RECALLS ITS AMBASSADOR TO ISRAEL FOR CONSULTATIONS ON DEVELOPMENTS REGARDING IRAN'S NUCLEAR PROGRAMME, ACCORDING TO ISRAEL'S CHANNEL 12.
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