Pakistani intelligence officials have expressed concerns that U.S. President Donald Trump might order a ground offensive in Iran. This potential escalation comes amid the ongoing 2026 Iran conflict, which began with U.S. and Israeli operations against Iran earlier this year. The conflict has primarily involved air and missile strikes, with intermittent diplomatic efforts for a ceasefire underway. Markets are now pricing in a decreased probability of a U.S.-Iran deal including reconstruction funding, reflecting concerns that military actions may hinder diplomatic efforts.
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