Trump warns Iran of resumed bombing after G7 deal, Fed holds rates steady amid economic fears

Amidst a Group of Seven (G7) summit in France, President Donald Trump has announced a memorandum of understanding with Iran aimed at ending a protracted conflict and reopening the crucial Strait of Hormuz. While declaring the deal "all signed," Trump issued a stern warning that the agreement is not yet final and threatened to resume military action if Iran fails to adhere to its terms or "doesn't behave." The formal signing of this initial agreement, which seeks to address Iran's nuclear program and provide sanctions relief, is anticipated later this week in Switzerland.

Concurrently, the Federal Reserve has maintained its benchmark interest rates at 3.5% to 3.75% in recent months, notably on April 29 and March 18, 2026. This decision reflects ongoing concerns about economic uncertainty and elevated inflation, largely attributed to the impact of the prolonged "Iran war" on energy prices and the broader global financial climate. The central bank's cautious stance highlights the significant economic ramifications of the regional conflict.