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During his speech, Trump reiterated that the U.S. objectives in Iran were almost met and said that "we have all the cards" in the conflict.
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Investor sentiment quickly soured as Trump's speech went on, with Asian markets and U.S. bonds dipping.
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President Trump did not define a clear path out of the conflict, which he estimated would end within three weeks.
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Trump's first televised address of the conflict with Iran did little to quell uneasy markets.
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The United States and Israel have done significant damage to Iran's military capabilities. But Iran still fires missiles, has nuclear material and coordinates with militias in the region.
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The letter, by President Masoud Pezeshkian of Iran, was at times defiant, patronizing or conciliatory, and came hours before President Trump was set to address the American people on the war.
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In his prime-time speech, President Donald Trump argued that the U.S. had to act on its own to neutralize the threat from Iran because many of America's allies wouldn't help.
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There were some glaring omissions in the president's primetime address, writes the BBC's Gary O'Donoghue.
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President Donald Trump announced "major combat operations" against Iran on Feb. 28, with massive joint U.S.-Israeli strikes.
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President Donald Trump has claimed repeatedly in recent days that the air war on Iran has ousted the regime, but there is no indication that the authoritarian government has lost its grip on power or that successors to assassinated leaders have made a break with the Islamic Republic's ideology, according to multiple Western officials, U.S. intelligence assessments and regional analysts
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U.K. Prime Minister Keir Starmer said that his government was "fully committed to NATO" and called it "the single most effective military alliance the world has ever seen."
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