Senior US Official: If No Agreement Is Reached With Tehran Before Trump's Return From China Trip, The Military Option Will Be Back On The Table. - Israel's Channel 12

A senior U.S. official warned that if no agreement is reached with Tehran before President Trump returns from his China trip, the military option will be reconsidered, according to Israel’s Channel 12. This escalatory rhetoric reintroduces geopolitical risk as a key driver in Middle East premium pricing, particularly affecting oil markets and regional equity exposure. The threat heightens pressure on Iranian assets, increases safe-haven demand for Israeli bonds and defense-related equities, and complicates U.S.-China trade dynamics by linking strategic and economic negotiations. Investors are likely repricing risk through the lens of disrupted energy supply and potential spillover into Gulf shipping lanes. Traders will watch for any statements from the White House or Iranian leadership in the 48 hours following Trump’s return from Beijing as the next potential catalyst.

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