• President Trump has been briefed on military options and publicly warned that limited or larger strikes on Iran remain under consideration, even as negotiations over Iran's nuclear and missile programs continue.
  • The U.S. has increased its military posture in the region, including naval movements, while Iran has threatened severe retaliation, raising the risk of a broader conflict.
  • The standoff has rattled energy markets, with oil prices climbing on fears of disruption to shipping through the Strait of Hormuz, and driven safe-haven flows into gold and Treasuries.

President Donald Trump has escalated his administration's dual-track approach toward Iran, warning that further military strikes—potentially limited or larger in scale—are possible even as diplomatic talks over Tehran's nuclear and missile programs proceed. The president, according to people familiar with the matter, has been presented with a range of military options by U.S. officials and indicated he is willing to use force if Iran does not accept terms or if violence inside Iran escalates.

The warnings follow a recent cycle of U.S. strikes that have already damaged key Iranian industrial facilities, including major steel production sites, and led to casualties. "Limited strikes remain under consideration," a senior administration official said, speaking on condition of anonymity to discuss internal deliberations. The White House has also publicly highlighted naval movements in the region, signaling a heightened force posture.

Iran has responded with its own warnings. "Any further aggression will be met with a decisive response," a spokesperson for Iran's Foreign Ministry said, echoing earlier statements from military commanders. Regional actors have urged restraint, with some warning that escalation could spiral out of control. "We call on all parties to avoid steps that could lead to a wider war," a Gulf diplomat said.

The standoff is already rippling through financial markets. Oil prices have risen about 3% this week on concerns that any military confrontation could disrupt shipping through the Strait of Hormuz, a vital chokepoint for global crude supplies. The risk premium has also boosted gold and U.S. Treasury bonds, traditional safe-haven assets. In contrast, equities have edged lower, particularly in sectors exposed to energy costs or supply-chain disruptions.

At the same time, Iran's diplomats have signaled that a draft agreement on nuclear limits may be imminent, creating a paradoxical environment of both talks and threats. "Negotiations are moving forward, but the window for a peaceful resolution is not open indefinitely," a U.S. official said. Without a deal, the administration appears prepared to follow through on its military warnings.

Analysts caution that the outcome remains uncertain. "If diplomacy succeeds, we could see a de-escalation in the coming days," said a geopolitical risk consultant. "But if the president orders a strike—even a limited one—the risk of Iranian retaliation is high. That could quickly escalate into a broader conflict."

Correction: An earlier version of this article misstated the timing of the president's briefing. It was provided earlier this week.