Donald Trump has threatened to launch an attack on Iran’s Pickaxe Mountain, a nuclear facility near Natanz. This announcement comes amid the ongoing US-Iran conflict, now in its seventh week, which was triggered by Iran’s obstruction of the Strait of Hormuz. The conflict has already seen direct US and Israeli airstrikes on various Iranian targets, with Iran retaliating against US allies in the Gulf region. Trump’s threat to target the nearly completed Pickaxe Mountain facility suggests a potential escalation in the military conflict, focusing on Iran’s underground nuclear infrastructure.
This development has had a noticeable impact on the prediction markets regarding a potential US-Iran deal in 2026. Market participants appear to interpret Trump’s latest threat as decreasing the likelihood of reaching a reconstruction funding agreement, as seen in the notable drop in the odds for such a deal. The current pricing reflects increased skepticism about the inclusion of reconstruction funding in any forthcoming agreement.
Key Takeaways
- Trump’s threat to attack Iran’s Pickaxe Mountain appears to escalate the US-Iran conflict, decreasing the odds of a 2026 deal.
- Markets suggest that the likelihood of Iran Reconstruction Funding being included in a US-Iran deal has decreased, reflecting heightened tensions.
- The current pricing of related markets appears consistent with increased doubt about reaching a comprehensive agreement amid ongoing hostilities.
What to Watch
Observers will be focusing on any further military actions by the US or Iran that could influence diplomatic negotiations. The deadline set by Trump for Iran to reopen the Strait of Hormuz may indicate potential shifts in market pricing depending on Iran’s response. Additionally, any mediation efforts by Qatar and Pakistan or statements from key negotiators could provide further insights into the evolving situation.
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Disclosure: This article was edited by Estefano Gomez. For more information on how we create and review content, see our Editorial Policy.

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