Pakistan has raised concerns that the United States might be preparing a ground assault on Iran’s coast, representing a significant shift from the current U.S. strategy of airstrikes and naval operations. Islamabad, acting as a mediator in the conflict, has consistently called for de-escalation and a return to diplomatic negotiations. This possibility raises the stakes and could complicate ongoing diplomatic efforts, while also influencing market expectations for a potential U.S.-Iran deal in 2026. Prediction markets now reflect a decreased likelihood of diplomatic resolution between the two countries and an increased perception of geopolitical risk.
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