Iran's threat to expand regional hostilities in response to potential U.S. military action under a Trump administration has heightened geopolitical risk in the Middle East. The escalation risks disrupting energy supply routes and could trigger broader conflict, directly impacting global oil markets through the potential for supply shocks. Defense stocks and gold are likely to see increased demand as safe-haven assets, while regional equities and shipping lanes face elevated downside risk. Traders are focusing on upcoming U.S. defense posture statements and Iranian naval activity in the Strait of Hormuz as near-term indicators of de-escalation or further tension.
Iran Warns of Expanding Conflict if Trump Escalates Attacks
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