Iranian cleric warns Gulf states of missile attacks over US reliance

A senior Iranian cleric issued a warning to regional governments, stating they could face missile attacks if they continue to depend on the United States for their security. This warning is part of the ongoing tensions between Iran and the U.S., as Tehran aims to exert pressure on Gulf states aligned with Washington. The cleric’s comments emphasize the potential for military escalation, especially targeting Gulf energy infrastructure, which has been a critical point in Iran’s strategic deterrence strategy. These developments come amidst heightened levels of concern in the region, contributing to market sentiments regarding the likelihood of a US-Iran deal in 2026. Key Takeaways The cleric’s threats appear to reinforce concerns about Iran’s military posture, which is consistent with reduced chances of a US-Iran deal. Market data suggests a decrease in confidence for a US-Iran deal, with several related markets showing a decline in YES pricing. The geopolitical tensions highlighted by this threat suggest participants view the situation as undermining diplomatic resolutions. What to Watch Observations should be made regarding any escalatory actions by Iran or responses from the U.S. a...