Iraq's al-Zaidi tells Trump: no strikes launched from our soil

Trump and al-Zaidi got on the phone Thursday, and Iraq's prime minister used the call to draw a hard line: his country will not serve as a launchpad for strikes against its neighbors. The readout came from al-Zaidi's own office. Both leaders said dialogue and diplomacy have to come first.

The conversation centered on the Middle East's combustible state, with the two men stressing the need to contain tensions and keep the conflict from spreading further. They also agreed that Washington and Baghdad should stay in contact and coordinate on the issues between them, according to the statement from al-Zaidi's office.

The call landed in the middle of a packed diplomatic stretch. Iran's National Security Council secretary, Mohsen Rezaei, was in Moscow, where he said talks with Russian President Vladimir Putin covered postwar regional security arrangements without foreign interference, and that Putin offered to help end the war, per Iranian state television. Rezaei also said Tehran won't open the Strait of Hormuz until seven conditions are met and won't negotiate on it, according to the Lebanese outlet Al-Mayadeen.

Separately, The Associated Press reported Thursday that the Trump administration held secret talks with Iran about deporting Iranian nationals through an unnamed third country, citing court documents. Judge Ana Reyes called deporting people to Iran a serious threat of certain death, referencing an October 15 transcript. CNN also heard from a source that the risk of a renewed US-Iran war has eased after Republicans' midterm defeat, though escalation remains probable.

Markets were deep in the red as the diplomacy played out. The tech-heavy USTEC index dropped 5.16%, the US500 fell 3.62% and the US30 slid 2.94%, while the UK100 lost 3.13% and Germany's bGER40 slipped 0.95%. Gold climbed 1.23% as investors reached for cover.

For now, the takeaway is a channel kept open. Baghdad and Washington say they'll keep coordinating, and Iraq's promise not to be a staging ground is the headline al-Zaidi's office wants the region to hear.