Brigadier General Ebrahim Zolfaghari, the spokesman for Iran’s Khatam al-Anbiya Central Headquarters, has issued a warning that Iran will retaliate against any US attacks on its infrastructure by targeting regional infrastructure. This statement is part of the ongoing US-Iran conflict that has seen increased hostilities since the collapse of a ceasefire earlier this year. The conflict has escalated with both nations conducting military strikes, raising concerns about further destabilization in the region. Zolfaghari’s remarks suggest a possible strategic shift by Iran towards targeting civilian infrastructure in response to any future US actions.

Key Takeaways

Markets suggest that Zolfaghari’s threat may decrease the likelihood of a US-Iran deal in 2026, as indicated by a 10% expected decrease in the probability of a deal including Iran Reconstruction Funding.

Recent activity reflects a consistent 26% YES probability for a US-Iran deal in 2026, despite fluctuating odds over the past week.

The ongoing conflict and potential for further escalation appear to influence market participants’ views on the likelihood of a diplomatic resolution this year.