Trump warns Iran could be ‘totally wiped out as a country’ if it repeatedly responds to US strikes

In a recent statement, President Donald Trump warned that Iran might face total destruction if it continues to retaliate against U.S. military strikes. The comments, made during a call with Fox News correspondent Trey Yingst, underscore the heightened tensions between the two nations. This development comes as the U.S. and Iran remain at odds over nuclear enrichment and regional influence, complicating ongoing negotiations for a potential diplomatic deal. Markets have responded to the escalating rhetoric, with the likelihood of a US-Iran deal in 2026 appearing to decrease.

Key Takeaways

• Trump’s warning appears to increase the perceived risk of military escalation, which could negatively impact the prospects of a US-Iran deal in 2026.
• Current market pricing suggests a decrease in the likelihood of Iran Reconstruction Funding being part of a US-Iran agreement, reflecting the heightened tensions.
• Observers note a 25% expected move in market odds, consistent with decreased confidence in diplomatic resolutions.

What to Watch

Market participants will be closely monitoring any further statements from key figures such as U.S. Chief Negotiator Mike Vance and Iranian Foreign Minister Javad Zarif. Developments, such as a resumption of military operations or formal announcements of diplomatic withdrawal by the U.S., could further influence market perceptions. The involvement of mediators from Qatar and Pakistan may play a critical role in facilitating dialogue between the two countries, potentially impacting the odds of a deal being reached.

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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.