Trump warns at G7: U.S. will 'go right back to dropping bombs' if Iran deal sours

Trump's pledge to "go right back to dropping bombs" if the U.S.-Iran framework collapses dented the post-deal calm that had buoyed risk assets earlier in the week. The White House framed the comment as a reminder to Tehran of its commitments on reopening the Strait of Hormuz to commercial traffic. The president also confirmed to CNBC that the text of the agreement would be released within days.

The remarks came as Brent crude slipped below $80 a barrel and U.S. equities traded flat ahead of the Federal Reserve's policy decision. Investors are still trying to gauge whether Iranian tankers will sail at full capacity before the written framework is published. UBS analysts wrote that the verbal warnings make it harder to price the residual risk of a return to conflict.

Tehran has presented the deal to its public as a victory, although the BBC's Tehran correspondent reported that for most Iranians it represents an economic necessity. Trump's comments came on the final day of the G7 in Evian, where leaders discussed boosting Ukraine's air defences and tightening sanctions on Russia, underscoring how quickly the administration shifts between diplomatic gains and military threats.