Iran is evaluating potential military responses as tensions with the United States continue to rise, following the breakdown of the June ceasefire. The confrontation centers around Iran’s nuclear program, the blockade of the Strait of Hormuz, and U.S. economic sanctions. Iran may target commercial vessels or U.S. assets in the region, marking a shift from economic to military escalation. Markets are now pricing in a reduced likelihood of a U.S.-Iran deal in 2026, while diplomatic solutions appear increasingly unlikely.
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