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Trump said he decided to back off from his recent threat to order strikes on Iranian energy infrastructure "based on the fact we're negotiating."
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European stocks are expected to open higher on Wednesday as the U.S. showed more signs it was trying to de-escalate the war with Iran.
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Secretary of State Marco Rubio will travel to France this week to try to sell America's skeptical Group of Seven allies on the Iran war that has sent global fuel prices soaring.
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"Operation Epic Fury continues unabated" to achieve President Donald Trump's military objectives, White House press secretary Karoline Leavitt said.
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A significant storm will to move through the Middle East this week, with impacts expected from Israel to Qatar to Iran, forecasts show.
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The Iranian military's destructive capacity is far from that of the United States and Israel. Yet its asymmetric strategy, including closing the Strait of Hormuz, has given it the confidence to issue its own demands. What that means for ending the war, and the aftermath.
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Former GM executive CEO Pamela Fletcher told CNBC "the faster path, and frankly, a big need, is out there in this defense space."
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Investors reacted to signals of possible de-escalation of the war in the Middle East.
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Senate Democrats failed for the third time to advance a resolution that would force the removal of troops from hostilities in Iran unless Congress approves offensive operations.
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While the president has promised rapid relief, Americans could feel the financial sting of the conflict for some time after it ends.
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President Donald Trump said that peace negotiations with representatives from Iran were ongoing: "They want to make a deal so badly."
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;Resize=(620)) Israel will occupy southern Lebanon up to the Litani River to create a "defensive buffer," Defence Minister Israel Katz said on Tuesday, spelling out for the first time Israel's intent to seize territory amounting to nearly a tenth of Lebanon.
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