Washington described the operation as defensive, stopping short of a broader military campaign. Despite previously suggesting strikes could resume after the midterms, Trump adopted a softer tone, leaving room for diplomacy.

The dollar index held near 101.8 as Americans headed to the polls, with prediction markets giving Democrats a 74% chance of taking the Senate. Political developments are competing with economic data for market attention, particularly Friday's US jobs report. With a December Fed hike priced at 73%, the employment figures could influence the dollar's next move.

Crude dropped more than 7% as hopes for Middle East peace talks eased inflation concerns, sending long-term Treasury yields down four to six basis points. The 10-year yield slipped below 4.88%, its lowest since September 10, even as markets priced in at least two additional quarter-point Fed hikes.

Check out today's market updates!