• Iran declares readiness for war while remaining open to negotiations, amid heightened U.S. tensions.
  • Deputy Foreign Minister Saeed Khatibzadeh warns that any ground troop deployment could lead to a quagmire.
  • Global oil markets face elevated risk as Iran conducts live-fire exercises in the Strait of Hormuz.

Iran is signaling military preparedness while keeping the door open for diplomacy, as tensions with the United States escalate. Deputy Foreign Minister Saeed Khatibzadeh warned on Thursday that Tehran is "ready for a military response" if provoked, cautioning that sending ground troops into Iran could result in a conflict reminiscent of past large-scale wars.

"We are prepared for war but ready to negotiate," Khatibzadeh said at a press conference in Tehran, according to state media. His comments come after U.S. President Donald Trump threatened "very strong options" to crack down on Iranian domestic protests. Iran's Foreign Minister Abbas Araghchi echoed the sentiment, stating the country is "equipped for war even more so than during the last conflict."

The Islamic Republic has ramped up its military posture in recent weeks. Iran inducted 1,000 domestically developed "strategic combat" drones into army divisions and conducted live-fire exercises in the Strait of Hormuz, a critical chokepoint for about 20% of global oil and gas flows. Pro-Iranian militias in Iraq, Hezbollah in Lebanon, and the Houthis in Yemen have threatened retaliation if Iran is attacked, signaling a broader regional escalation risk.

Global oil markets are on edge. Brent crude futures rose 1.2% on Thursday to $78.50 a barrel, as traders priced in potential disruption to Strait of Hormuz traffic. The U.S. has moved additional military assets into the region, and joint U.S.-Israel strikes have drawn condemnation from Tehran. The UAE recently intercepted Iranian missiles and drones, reserving the right to respond.

Domestically, Iran remains deeply polarized. The government's强硬 stance contrasts with ongoing anti-government protests and repression. Analysts warn that a miscalculation could trigger a prolonged conflict, though both sides have expressed interest in avoiding all-out war.

Correction: An earlier version of this article misstated the date of Khatibzadeh's remarks. They were made on Thursday, not Wednesday.