Your morning market brief.In plain English.

Risk assets found their footing overnight as escalating Middle East tensions paradoxically accelerated diplomatic efforts. Iran and Israel exchanged missile strikes, with smoke reported at an illegal Israeli settlement following Iranian retaliation and Israel claiming a strike on an Iranian petrochemical complex (Al Jazeera). The military escalation immediately triggered high-level intervention, with Trump announcing both nations are looking to implement an 'immediate ceasefire' (Bloomberg Markets). The shekel whipsawed from best to worst performer, easing pressure on Israel's central bank (Bloomberg Markets). VIX collapsed 12.69% to 18.78 as markets interpreted the rapid diplomatic response as containing tail risk rather than expanding it. WTI crude climbed 1.21% to $91.64 on supply disruption fears, while safe-haven gold edged up 0.31%. Industrial metals showed particular strength with copper surging 1.89%, suggesting traders are positioning for a diplomatic resolution that preserves global growth momentum.