Trump suggests Iran could face more bombing amid US sanctions crackdown

President Donald Trump has suggested that Iran might face increased military action, stating that the country could be bombed “a little bit more” amidst ongoing tensions. This statement comes as the United States intensifies economic sanctions against Iran, part of a broader strategy amid heightened conflict involving the U.S., Iran, and Israel. The recent ceasefire has collapsed, and there are no direct negotiations currently underway. The U.S. continues to enforce a naval blockade, while Iran has indicated a potential shift to a more aggressive military posture. Key Takeaways Trump’s comments suggest heightened military tensions between the U.S. and Iran, impacting the likelihood of a diplomatic deal. Market pricing indicates a decreased probability of Iran Reconstruction Funding being included in a US-Iran deal in 2026. The increased sanctions and military threats appear consistent with scenarios where diplomatic resolutions are less likely. What to Watch U.S. and Iranian diplomatic engagements remain critical to watch, with any shifts in negotiation efforts potentially affecting market perceptions. Key developments could include changes in military activity by either side or an...