US Pulled Back On Iran Attack '10 Minutes' Before Strike, Trump Says In Tweet - United States Oil Fund (ARCA:USO), SPDR S&P 500 (ARCA:SPY)

President Donald Trump said Friday he called off a planned military strike against Iran because it could have killed more people than would have been appropriate as a response to Iran’s downing of an unmanned American drone.

What Happened

Trump said on Twitter that he ordered the retaliatory attack, but pulled back 10 minutes before because it wouldn’t have been proportional.

Why It's Important

The New York Times cited senior officials who said Trump approved attacks on multiple Iranian radar and missile batteries, showing a willingness to engage Iran militarily.

Hawks in the administration have been pushing for a strong reaction to Iran for its actions on Thursday, when it shot down the drone.

Iran and the U.S. have conflicting accounts of where the drone was: the U.S. said it was in international waters over the Straits of Hormuz, while Iran said it was in Iranian airspace.

In a separate Times story, a commander of Iran's Aerospace Force was quoted as saying the country could have also shot down an American military plane with 35 people on board.

“With the U.S. drone in the region there was also an American P-8 plane with 35 people on board,” said Gen. Amir Ali Hajizade, according to the Tasnim news agency.

“This plane also entered our airspace and we could have shot it down, but we did not.”

What’s Next

Congressional Democrats have blamed Trump for increased tensions with Iran, as his administration pulled out of the Iran nuclear agreement reached by the administration of former President Barack Obama.

Rep. Tulsi Gabbard of Hawaii tweeted that war with Iran is "highly likely unless Trump swallows his pride and returns to the Iran nuclear agreement.”

Trump said on Twitter that more sanctions will be imposed on Iran, and implied that military action may still occur.

Brent crude was trading higher by 1.33% at $65.31 a barrel at the time of publication Friday.

The United States Oil Fund LP USO was up 1.05% at $11.98.

The S&P 500 was down 0.13%, while the Dow Jones Industrial Average was up 0.11%.

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