Trump says 'there would be no Israel' if Iran was allowed nuclear weapon

President Donald Trump stated that there would be "no Israel" if Iran were permitted to obtain a nuclear weapon, according to the headline reported by Middle East Eye. The remark signals a stark escalation in rhetoric around Iran's nuclear program, which markets typically price through a geopolitical risk premium rather than a direct fundamentals shock. The primary transmission channel is risk appetite and energy supply expectations, as heightened Middle East tension tends to lift crude oil and safe-haven demand for gold, the US dollar, and Treasuries while weighing on regional equities and the shekel. Israeli assets and Gulf-linked energy exposures are most directly sensitive, with Israeli equities and the shekel facing elevated volatility and oil-importing economies facing pressure from higher input costs. Traders should watch the next IAEA Board of Governors assessment of Iran's enrichment levels and any official US or Israeli policy action, as either would confirm whether the rhetoric is translating into concrete escalation.

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