Trump Ends US Military Operations Against Iran as Stalled Peace Talks Steady Gold Prices

Gold prices steadied after marking their second weekly loss, as traders weighed ongoing uncertainties from stalled US-Iran talks amid a fragile ceasefire in the conflict. The standoff, which began with hostilities on February 28, 2026, has heightened global inflation risks and dimmed prospects for interest rate cuts by central banks, pressuring the precious metal traditionally seen as a safe-haven asset. According to Bloomberg reports, gold's decline reflects dashed hopes for quicker resolutions, even as emerging market stocks and currencies climbed slightly in thin holiday trading.

President Donald Trump notified Congress on Friday that US military operations against Iran have "terminated", citing a ceasefire that took hold in early April with no exchange of fire since April 7. This declaration came just ahead of a 60-day deadline under the 1973 War Powers Resolution, which requires presidents to withdraw forces from unauthorized conflicts or seek extensions unless lawmakers approve continued action. Trump extended the ceasefire indefinitely in his letter to congressional leaders, including House Speaker Mike Johnson and Senator Chuck Schumer, while a senior administration official emphasized that the initial hostilities have formally ended for legal purposes.

Despite the termination notice, tensions persist with a continued US military blockade of Iranian ports and the Strait of Hormuz, a critical chokepoint for global oil shipments. Iran recently delivered a new proposal to the US via Pakistan, as reported by Bloomberg, which briefly pushed crude oil prices lower and supported gains in emerging assets. However, Trump expressed dissatisfaction with Tehran's offer, telling reporters he issued a "final proposal" to Iran's "disjointed" government but voiced pessimism about reaching a deal soon. According to The Independent, he ruled out an early end to the broader hostilities.

The conflict has exacted a heavy toll, with 13 US service members killed and hundreds injured, alongside thousands of Iranian deaths, as noted by Scripps News. While active combat has paused, the limbo in negotiations keeps markets on edge—gold's losses underscore reduced safe-haven demand, yet any breakdown in talks could reverse that trend by reigniting oil supply fears and inflation pressures. Investors and analysts now watch for potential 30-day extensions under war powers law or congressional action, as the blockade disrupts trade and affects energy-dependent economies worldwide.

What happens next remains unclear: Trump's letter leaves the door open for renewed operations if needed, per Courthouse News, while Politico highlights the administration's strategy to wind down without full withdrawal. For global markets, the outcome hinges on whether diplomacy revives—success could stabilize oil and boost rate-cut odds, while failure risks broader escalation impacting everyone from commodity traders to consumers facing higher fuel costs.