Iran’s Supreme National Security Council has announced a shift in strategy towards the United States following Washington’s withdrawal from a Memorandum of Understanding. This decision comes amid escalating hostilities, with Iran conducting an anti-ship missile test and threatening to strike U.S. interests if attacked. The development marks another escalation in the ongoing U.S.-Iran conflict, with tensions persisting since the collapse of the ceasefire earlier this year. Markets are already pricing in these developments, with a decrease in the probability of reconstruction funding being included in any potential deal.
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