USD/ILS & Oil in Focus as Trump-Netanyahu Meeting Reinforces Iran Stance

Geopolitical developments are shaping risk sentiment across forex and commodity markets following a positively characterized meeting between President Trump and Prime Minister Netanyahu, with both sides reinforcing close U.S.-Israel coordination on Iran policy. Iran has denied reports of seeking direct talks with the United States over the past 16-17 days, pushing back against speculation of renewed diplomatic negotiations. The denial raises the prospect of continued tensions, which could support crude oil prices and safe-haven flows into USD, JPY, and CHF. Separately, U.S. envoys Steve Witkoff and Jared Kushner are planning their first visit to Kyiv within two weeks to revive Russia-Ukraine diplomatic talks, a development that could influence EUR sentiment if progress materializes. Traders should monitor USD/ILS for direct geopolitical impact, while EUR/USD and USD/JPY may see volatility tied to broader risk appetite shifts. Elevated Middle East tensions historically support oil prices and weigh on risk-sensitive currencies, while any de-escalation in Eastern Europe could provide a modest tailwind for the euro.