Iran threatens greater force if US launches more attacks

Iran’s top negotiator has issued a warning of intensified Iranian military strikes should the United States conduct further attacks. This development comes amid ongoing tensions between the two nations, which have seen periodic escalations following U.S. and Israeli military actions against Iran earlier in the year. The situation remains volatile, with a fragile ceasefire repeatedly breached by both sides, suggesting a sustained risk of further conflict. Market participants appear to view this threat from Iran as a significant factor that could undermine the prospects of a U.S.-Iran deal in 2026. The likelihood of such a deal, particularly one including terms like Iranian reconstruction funding, appears to have diminished, as the threat of increased military activity raises concerns about the potential for diplomatic negotiations to stall. Observers note that the situation reflects a pattern of reciprocal military actions, rather than movement toward a diplomatic resolution. Markets have responded to these developments with a slight decrease in the probability of a U.S.-Iran deal being reached by the end of 2026. This reflects a broader uncertainty about the potential for successfu...