Iran threatens Gulf states over potential US military strikes

Iran has issued a warning that Gulf states could face retaliation if the United States launches further military strikes. The threat specifically targets energy infrastructure and underscores the escalating hostilities in the ongoing 2026 Iran war. Reports suggest that Iran has already targeted U.S. military sites and Gulf infrastructure in response to previous U.S. attacks, with the current situation reflecting a broadening regional conflict impacting critical civilian assets. This development may further complicate diplomatic efforts towards a U.S.-Iran deal that includes reconstruction funding. Key Takeaways Iran’s latest threat appears to increase tensions in the Middle East, suggesting further complications in reaching a U.S.-Iran agreement. Market pricing indicates participants view this as decreasing the likelihood of Iran reconstruction funding being included in a 2026 U.S.-Iran deal. The current geopolitical climate, marked by retaliatory strikes, appears inconsistent with scenarios where diplomatic resolution is imminent. What to Watch Markets will be closely monitoring any new military actions by the U.S. or Iran, as these could further influence the likelihood of a deal...