President Donald Trump has decided not to participate in joint military strikes with Saudi Arabia against the Houthis in Yemen, according to a report by Jonathan Swan.

The decision came after intense lobbying by Saudi Crown Prince Mohammed bin Salman but was influenced by skepticism and opposition within Trump’s inner circle. The U.S. military was reportedly prepared to take action, but the administration decided to withhold its involvement, at least for now.

The development comes amid the ongoing conflict in Yemen, where Saudi Arabia has supported the internationally recognized government against Houthi forces since 2015. The Houthis are an Iran-aligned movement, a dynamic that has long tied events in Yemen to the broader rivalry between Saudi Arabia and Iran and to Washington’s diplomatic posture toward Tehran.

Market behavior suggests that expectations for near-term diplomatic meetings between the United States and Iran have declined following the U.S. decision not to join Saudi military actions. The move appears consistent with a cautious U.S. approach to direct involvement in regional conflicts and could affect diplomatic dynamics, since any American military action against an Iran-aligned group would unfold against the backdrop of the broader U.S.-Iran relationship.

Recent price fluctuations in markets tied to U.S.-Iran peace talks also suggest a change in expectations regarding potential diplomatic engagements by the end of the year.

Observers will monitor any changes in U.S. foreign policy that could affect diplomatic relations with Iran, particularly following the restraint shown in Yemen. Statements from the White House or State Department about possible diplomatic meetings will be key indicators, as will any shift in U.S. or coalition military activity around Yemen. Any escalation in the Gulf region or changes in Saudi-Iran relations could also alter current market expectations for U.S.-Iran diplomatic engagements.