Israeli President Isaac Herzog criticized New York politician Mamdani for what he perceives as antisemitic rhetoric while praising former U.S. President Donald Trump’s support for Israel. Herzog also issued a stern warning about Iran’s threats, emphasizing the persistent security risks posed by Tehran’s nuclear and missile programs. Markets reacted sharply to his remarks, with the odds of a U.S.-Iran diplomatic meeting by the end of August 2026 declining significantly to 32%. Market participants interpret Herzog’s strong stance as indicative of a hardening Israeli position that could complicate diplomatic efforts.
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