Market Analysis: Differences between Netanyahu and Trump on Iran War Could Put the US in Trouble

When Donald Trump decided to go to war with Iran, Israeli Prime Minister Benjamin Netanyahu's years of lobbying finally paid off. Now, as the American president tries to back away from the conflict, the rift between him and one of his closest geopolitical allies could potentially lead him into trouble. Just hours after Trump announced a two-week ceasefire on Tuesday, Netanyahu challenged the terms of the agreement. His forces launched the largest attack since the new invasion of Lebanon, causing hundreds of deaths, prompting Tehran to warn that the agreement was at risk, and yet the two sides had not engaged in direct negotiations. According to Trump, his phone call persuaded Netanyahu to agree to reduce the scale of military operations. But on Thursday, despite agreeing to negotiate with Lebanon, the Israeli leader vowed to continue fighting in Lebanon. Sources familiar with the matter revealed that Netanyahu strongly opposes restarting diplomatic channels to end the comprehensive conflict with Iran. Due to undisclosed issues, the sources requested anonymity. They said that shortly before the announcement of the agreement on Tuesday, Trump only told Netanyahu that Lebanon would also be included in the initial terms of the agreement. In public, Trump downplayed his differences with Netanyahu on this issue. However, as Trump seeks to end this war that is shaking the global economy and could escalate further, cracks in their alliance are becoming apparent. Shira Efron, a former advisor to the Israeli government who now works for the RAND Corporation, said, "This war was initially something Israel wanted to fight, but it has developed beyond their control."