Trump: Iran in “economic and military death spiral,” US prevailing

In a statement on Monday, U.S. President Donald Trump declared that Iran is experiencing an “economic and military death spiral” and asserted that the United States is prevailing against Tehran. This announcement comes amid a prolonged conflict involving the U.S., Iran, and Israel, which has been ongoing since February 2026. The conflict has seen military actions, including airstrikes and naval blockades, particularly affecting the strategic Strait of Hormuz. The current situation is described as a fragile pause with diplomatic efforts reportedly stalled. Trump’s remarks appear significant in the context of prediction markets assessing the likelihood of a U.S.-Iran deal that includes reconstruction funding. Key Takeaways Trump’s statement appears to suggest a pessimistic outlook for a U.S.-Iran deal that includes reconstruction funding, reflected in market pricing. Current market odds for including Iran reconstruction funding in a deal have decreased, with YES pricing now ranging between 8.5% and 16.5%. The decreased optimism in the markets suggests that participants view the geopolitical environment as less conducive to a comprehensive agreement involving economic concessions. Wha...