Iran warns countries supporting US sanctions will be treated as enemies at war

Iran has issued a stark warning, stating that any country supporting U.S. sanctions will be treated as an enemy at war. This announcement intensifies an already tense situation in the ongoing U.S.-Iran confrontation. Former CIA analyst Larry Johnson suggests that China and Pakistan are unlikely to comply with U.S. sanctions, potentially undermining the coalition that Washington depends on. The statement from Iran indicates a potential escalation in diplomatic and economic hostilities, impacting prospects for any significant diplomatic resolution. In the context of prediction markets, this development is seen as a significant setback for the potential inclusion of Iran Reconstruction Funding in a U.S.-Iran deal in 2026. Current market prices reflect a decrease in the likelihood of such an agreement being reached. The odds for a deal that includes reconstruction funding have dropped from 24% a week ago to 16.5% currently, suggesting market participants view the recent escalation as detrimental to diplomatic efforts. Key Takeaways Iran’s declaration appears to escalate tensions, suggesting a move from economic to broader coercive measures. Markets indicate a decreased likelihood of a ...