US stock markets opened higher, following global trends, as investors reacted to President Donald Trump's cautious approach regarding direct US military involvement in the escalating Israel-Iran conflict. The S&P 500, Dow Jones Industrial Average, and Nasdaq composite all saw gains in early trading on Friday, marking a return to trading after the Juneteenth holiday. This market uplift occurred despite lingering uncertainty surrounding Trump's decision, which he stated would be made within two weeks, allowing for potential diplomatic resolutions concerning Iran's nuclear program.

The ongoing Middle East tensions have significantly impacted global oil prices, causing fluctuations due to fears of disrupted crude supply, especially given Iran's position as a major oil producer and its control over the narrow Strait of Hormuz, a critical shipping lane. Beyond the geopolitical landscape, specific corporate earnings also influenced market movements. Kroger, the grocery giant, saw its shares jump after reporting stronger-than-expected quarterly profits and raising its full-year revenue forecast, despite acknowledging an uncertain economic environment. Similarly, auto dealer CarMax experienced a rise in its stock price following a better-than-anticipated profit for the latest quarter, driven by increased used auto sales.

Conversely, Smith & Wesson Brands, the firearms manufacturer, saw a considerable drop in its stock value after its quarterly profit and revenue fell short of analysts' expectations. The company attributed this decline to persistent inflation, high interest rates, and the uncertainty caused by potential tariffs, issues that have led many companies to adjust or withdraw their financial forecasts. This economic ambiguity, particularly regarding the scale of tariffs, has also influenced the Federal Reserve's decision to maintain its main interest rate this year, as it awaits clarity on the tariffs' impact on economic growth and inflation.

In the broader financial markets, Treasury yields edged higher, with the 10-year Treasury yield rising to 4.41% and the two-year yield holding at 3.94%. International stock markets showed mixed results, with European indexes generally rising, while Asia saw varied performance. Notably, Tokyo's Nikkei 225 index dipped slightly after Japan reported a core inflation rate of 3.7% in May, posing challenges for the government and the central bank.

President Trump's contemplation of military action against Iran, particularly concerning its clandestine nuclear enrichment facilities deep within a mountain, remains a critical point of focus. Reports indicate that Trump has approved strike plans but is delaying their execution to see if Iran will abandon its nuclear ambitions. The destruction of such deeply buried facilities would likely necessitate the use of powerful 30,000-pound bunker buster bombs and B-2 bombers, assets primarily possessed by the United States, highlighting Israel's reliance on US support for such an operation.

Domestically, Trump's stance on military intervention in the Middle East has created a notable schism within his 'Make America Great Again' (MAGA) movement. While prominent figures like Senators Lindsey Graham and Ted Cruz advocate for backing Israel, other influential allies, including Tucker Carlson, express strong skepticism about the US becoming entangled in another prolonged foreign conflict, drawing lessons from past engagements in Iraq and Afghanistan. This internal debate underscores the profound implications of Trump's impending decision on both international relations and his political base.