US Pentagon reportedly prepares for massive "final blow" of Iran war, Axios reports
- The Pentagon developing military options for a "final blow" in Iran that could include the use of ground forces and a massive bombing campaign
- Options include: Invading or blockading Kharg Island; Invading Larak, an island that helps Iran solidify its control of the Strait of Hormuz; seizing the strategic island of Abu Musa and two smaller islands, which lie near the western entrance to the strait and are controlled by Iran but also claimed by the UAE; Blocking or seizing ships that are exporting Iranian oil on the eastern side of the Hormuz Strait.
- Pakistan, Egypt and Turkey are still trying to arrange US-Iran talks; Iran rejected the initial US list of demands but did not rule out negotiations.
- A source said mistrust remains the main obstacle, with IRGC commanders described as highly sceptical, while mediators continue their efforts.
Context
The Pentagon's preparations for a significant military escalation against Iran suggest heightened tension and potential conflict in the region, particularly affecting oil supply routes such as the Strait of Hormuz. A large-scale military operation could lead to a spike in energy prices and increased risk aversion across markets, given the geopolitical risks at play, especially for currencies tied to regional stability like the USD and JPY. This situation underscores the broader implications for commodities, particularly oil and gold, as traders assess the likelihood of disruptions.
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