TEHRAN, June 17, 2025
Iran Seeks Ceasefire Amidst Escalating Conflict with Israel
As tensions flare in the Middle East, Iran reportedly seeks a ceasefire with Israel, sparking market reactions and international responses.
- Iran has asked countries to persuade the U.S. to call for an immediate ceasefire.
- Israeli Prime Minister Benjamin Netanyahu is not interested in a ceasefire.
- The U.S. Defense Department has awarded a $200 million contract to OpenAI.
The stock market in the U.S. surged on Monday following reports that Iran is seeking a ceasefire with Israel, signaling the potential for de-escalation in the ongoing conflict.
As early as the initial days of Israel’s strikes, Tehran appealed to several nations to convince U.S. President Donald Trump to urge Israel toward an immediate ceasefire, according to a Middle East diplomat with knowledge of the situation.
However, when questioned about a potential ceasefire during a news briefing on Monday, Israeli Prime Minister Benjamin Netanyahu indicated a lack of interest. Netanyahu affirmed Israel’s commitment to eliminating Iran’s nuclear program.
Defense and Economic Shifts
The persistent conflict has caused a renewed emphasis on defense strategies among various nations. The U.S. Defense Department is leveraging artificial intelligence to strengthen its forces, announcing a one-year contract with OpenAI to address critical national security challenges in warfighting and enterprise domains on Monday.
In a turn of events seemingly out of sync with the unfolding geopolitical landscape, the Trump Organization introduced a mobile phone plan named Trump Mobile and a gold-plated smartphone, the “T1,” emblazoned with an American flag. This move, made in the context of armed conflict and defense considerations, struck some as ill-timed.
What You Need to Know Today
Markets in America Rise
U.S. stocks rose Monday on news that Iran is reportedly seeking a ceasefire with Israel. The S&P 500 was up 0.94%, the Dow Jones Industrial Average climbed 0.75% and the Nasdaq Composite jumped 1.52%. Asia-Pacific markets were mixed in choppy trading Tuesday. Japan’s Nikkei 225 rose 0.53% at 2:30 p.m. local time on developments regarding the country’s monetary policy.
G7 Leaders Blame Iran for ‘Terror’
Group of Seven leaders issued a joint statement Tuesday, expressing support for Israel’s security. The leaders condemned Iran for being the “principal source of regional instability and terror,” reiterating that Iran can never have a nuclear weapon. Due to the Middle East conflict, Trump will be leaving the summit a day earlier, the White House said Monday.
BOJ to Slow Bond Purchase Cuts in 2026
The Bank of Japan reiterated on Tuesday that it would continue reducing its monthly purchases of Japanese government bonds until March 2026, and subsequently slow down the cuts. The BOJ kept its benchmark rate unchanged at 0.5%, as expected by a Reuters poll of economists. In other Japan news, a report explores why the country is doubling down on arms exports.
OpenAI Wins Contract from Defense Department
OpenAI has been awarded a $200 million one-year contract to provide the U.S. Defense Department with artificial intelligence tools, the latter announced Monday. It’s the first contract with OpenAI listed on the Department of Defense’s website. In December, OpenAI said it would collaborate with defense technology startup Anduril to deploy advanced AI systems for “national security missions.”
Trump Organization Enters Telecommunications
The Trump Organization on Monday announced a mobile phone plan and a $499 smartphone set to launch in September. The company’s new foray into telecommunications mainly comprises a licensing agreement. On Friday, the president reported that he had made more than $8 million in 2024 from various licensing agreements.
[PRO] What would it take for markets to react?
Equity and energy markets appeared to shake off concerns of a wider conflict in the Middle East on Monday, reversing some of the moves from late last week. Such a response to geopolitical conflict is not unusual, according to one strategist, who explained what it would take for markets to feel the effects of the hostilities.
And Finally…
Gold Outshines Treasurys, Yen and Swiss Franc as the Ultimate Safe Haven
Gold has claimed the safe haven crown. With spot prices surging 30% so far in 2025, bullion’s gains are outpacing that of other traditional safe havens such as the Japanese yen, Swiss franc, and U.S. Treasurys — compelling investors to rethink what true safety looks like in the face of fiscal sustainability concerns and looming wars.
At the heart of gold’s appeal is its freedom from government liabilities, market experts gathered at the annual Asia Pacific Precious Metals Conference told CNBC on Monday.
“Gold’s key advantage is that it is no one else’s liability,” said Nikos Kavalis, managing director at Metals Focus. “When an investor owns Treasurys, other sovereign bonds and even currencies, they are ultimately buying into the respective economy,” he said.
