Pakistan warns of potential US ground assault on Iran’s coast

Pakistan has expressed concerns that the United States might be preparing for a ground assault on Iran’s coast, suggesting a potential escalation in the ongoing conflict. Reports indicate that such an assault would mark a significant shift from the current U.S. strategy, which has largely involved airstrikes and naval operations. Pakistan, which has been acting as a mediator in the conflict, has consistently urged for a reduction in hostilities and a return to diplomatic negotiations. The possibility of a ground assault raises the stakes, potentially complicating diplomatic efforts and altering market expectations for a U.S.-Iran deal in 2026. Key Takeaways Markets suggest that the potential for a U.S. ground assault is consistent with decreased likelihood of a diplomatic resolution between the U.S. and Iran. Current pricing in prediction markets reflects a decrease in the probability of Iran Reconstruction Funding being included in a potential 2026 U.S.-Iran deal. Pakistan’s warning appears to have influenced market participants’ perception of increased geopolitical risk. What to Watch Observers should monitor any statements or military movements from the U.S. that might confirm o...