Bowen: Trump and Netanyahu wanted to reshape the Middle East – now they risk a permacrisis

Europe also opened firmer, with the Stoxx 600 up 0.5%, as traders bought back into the artificial-intelligence trade and reassessed geopolitical risk after a volatile stretch for oil, gold and equities.

Reports of a growing divide between President Donald Trump and Israeli Prime Minister Benjamin Netanyahu are gaining momentum amid the drawn-out U.S.-Israeli war against Iran and its regional allies.

The temporary resumption of hostilities highlighted Mr Trump’s twin failures in controlling his Israeli ally and cajoling Iran to accept a lasting truce.

Iran and Israel have reportedly paused hostilities after exchanging a series of strikes that triggered fears of a wider Middle East war.