Iranian official Ali Nehbandani has warned the US, Israel, and regional actors that any hostile actions will be met with retaliation at a higher cost. This statement comes amid escalating Middle East tensions, with direct confrontations between Iran, Israel, and the United States in recent months. Despite a Pakistan-mediated ceasefire earlier this year, the region remains volatile with mutual accusations and sporadic strikes. Analysts note a decrease in market confidence regarding a potential US-Iran deal in 2026, with the probability currently estimated at 20 percent. The decline in this probability follows Nehbandani’s statement and suggests a potential escalation in Iran’s military response, reflecting the fragile nature of ongoing diplomatic efforts.
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