TACO! Trump "cancels strikes on Iran" after the Saudi Crown Prince's call "urging to ease tensions."

The tense situation between the U.S. and Iran has experienced a dramatic reversal after escalating sharply. According to Xinhua News Agency, U.S. President Trump stated on August 1 via social media that Iran and other Middle Eastern countries had requested the U.S. to postpone launching attacks. Based on this request, he agreed to cancel the military action. Trump mentioned that relevant parties had initially reached a framework agreement, which includes the immediate, comprehensive, and complete opening of the Strait of Hormuz, as well as eliminating the nuclear threat posed by Iran. He noted that the cancellation of military action is contingent on all parties being able to promptly finalize the agreement, with Israel also making this commitment. Hours earlier, the situation in the Middle East had nearly reached the brink of collapse. According to CCTV News, the U.S. State Department issued a broad security warning to American citizens in the region, suggesting they consider evacuating or preparing for emergency evacuation; Kuwait reported an Iranian drone attack, while Iran warned that it had developed counter-attack plans targeting Israel's critical infrastructure and U.S. energy facilities. According to media reports citing sources, Saudi Crown Prince Mohammed bin Salman previously called Trump to express concerns about the potential U.S. military strike on Iran and urged for de-escalation of the situation. Iran's previously issued hardline signals have heightened concerns among Gulf countries. Reports citing Iranian sources indicate that Iran has devised counter-attack plans targeting not only Israel's critical infrastructure but also U.S. energy facilities and related targets in the Middle East. Should the conflict escalate again, the energy nodes of Gulf oil-producing countries such as Saudi Arabia, the UAE, and Qatar could become points of risk. Saudi Arabia moved quickly to mediate, leading Trump to ultimately call off the strike. On August 2, multiple informed sources reported that before Trump announced the cancellation of the strike on Iran, he had a phone call with Saudi Crown Prince Mohammed bin Salman. Sources stated that the crown prince reiterated Saudi Arabia's desire to de-escalate the situation and expressed concerns regarding the possibility of a large-scale U.S. military strike on Iran. Reports, citing two U.S. officials and one informed source, indicated that Mohammed bin Salman emphasized his concerns about the potential escalation of U.S. strike actions during the call. Previously, Trump had seriously considered launching a new round of attacks on Iranian energy targets in response to Iran's missile strikes on U.S. bases and ongoing disruptions to shipping in the Strait of Hormuz, but no final command had been given yet. Saudi Arabia is one of the U.S.'s most important allies in the Middle East. Sources indicated that during the past few months of conflict, Riyadh had repeatedly influenced the Trump administration's Iran policy at critical junctures. The crown prince's intervention reflects Gulf nations' concerns about potential retaliation affecting their energy facilities. Meanwhile, regional countries including Qatar, the UAE, Turkey, and Pakistan have continued to push for diplomatic mediation, calling for both the U.S. and Iran to cool tensions. Reports indicate that Qatar has recently made contact with Iranian Foreign Minister Mohammad Javad Zarif, U.S. Special Envoy for Middle East Affairs Steve Witkoff, and Omani officials to try and facilitate an arrangement between the two sides. Currently, a key objective of the mediation efforts is to restore shipping in the Strait of Hormuz. The strait is one of the world's most vital energy transportation passages, and any prolonged disruption could exacerbate market concerns regarding crude oil and natural gas supply. The U.S. and Israel were once prepared to launch large-scale strikes. Previously, it was reported that the U.S. and Israel may plan to escalate attacks on Iran, with energy facilities being potential targets. According to CCTV News, U.S. sources previously stated that the U.S. and Israel were planning to conduct the "most intense bombing to date" on Iran's energy infrastructure, with operations possibly lasting over the entire weekend and targeting facilities such as power plants and refineries. Among the plans was also the discussion of cutting off electricity supply to Iran's capital, Tehran. In another revelation from informed sources, the commander of the U.S. Central Command, General Kenneth McKenzie, drafted a plan to escalate military operations against Iran, focusing on a high-intensity bombing campaign over 10 to 14 days to significantly weaken Iran's missile strike capability and break the stalemate. As tensions continued to rise, on August 1, the U.S. State Department issued a broad security warning to American citizens in the Middle East, advising them to consider leaving the area or preparing for rapid evacuation in case of a worsening situation, and warned about risks including flight cancellations and airspace closures. On the same day, multiple U.S. consulates in Egypt, Saudi Arabia, Kuwait, Jordan, Bahrain, Qatar, the UAE, Iraq, Oman, and Israel issued safety alerts. Meanwhile, Kuwait reported that in the early hours of that day, it was hit by an Iranian drone attack. Iranian Foreign Minister Zarif, during calls with officials from Pakistan and Turkey, warned the U.S. against taking any "reckless action," or else Iran would respond decisively. Iran had previously sent hardline signals, indicating it had developed counter-attack plans that could be activated at any time. In the context of ongoing pressure from the U.S. and Israel, Iran had also issued stern warnings. According to CCTV News, the Iranian Foreign Ministry stated on August 1 that Iran is determined to continue its path of resistance and steadfastness until it completely eradicates the enemy's wrongdoing. The statement indicated that the U.S. continues to violate the terms of the June 18 U.S.-Iran memorandum of understanding, enforcing maritime blockades on Iranian ports and merchant ships while continuously launching barbaric attacks and increasing economic pressure. In response, Iran's armed forces are continuing their defensive strikes with full force. Additionally, reports stated that an Iranian senior security official revealed during the early hours of August 1 that Iran has formulated a comprehensive counter-attack plan, targeting key infrastructure in Israel and U.S. energy facilities in the Middle East, ready to be launched at any time. Energy facilities are seen as one of the most concerning risk areas in Iran's potential counter-attack plan. Related reports suggest that multiple energy nodes in Gulf countries such as Saudi Arabia, the UAE, and Qatar could fall within the scope of potential retaliation. Among them, the Ghawar oil field in Saudi Arabia is one of the largest conventional oil fields in the world and is a core oil-producing base for Saudi Arabia. Any severe damage could create a gap of approximately 5% in global oil supply. The Abqaiq and Khurais facilities in Saudi Arabia process over 7 million barrels of oil daily, and if damaged, it would not only impact crude oil supply but could also affect the petrochemical, power generation, and desalination industries. Furthermore, the Zakum oil field and Ruwais refinery in the UAE, as well as Qatar's North Dome gas field and Ras Laffan liquefied natural gas facilities, are also considered potential risk targets. The Zakum oil field produces over a million barrels per day, and the Ras Laffan liquefied natural gas facility accounts for approximately 20% of global LNG exports. Other potential targets viewed as critical energy nodes that could be impacted include Kuwait's Burgan oil field, Bahrains Sitra refinery and Mikhahji facilities, as well as Israel's Leviathan gas field and Tamar gas field. Currently, the U.S.-Iran situation has temporarily eased, but energy risks remain in focus for the market. If diplomatic efforts fail, the associated risks may once again become significant factors driving up oil prices. This article is reproduced from "Wall Street Insight," author: Li Jia; GMTEight editor: Xu Wenqiang.