US President Trump reportedly weighs limited strike to force Iran into nuclear deal, according to WSJ; President considers a range of military options but says he still prefers diplomacy

• Trump is considering an initial limited military strike on Iran to force it to meet his demands for a nuclear deal, in an attempt to pressure Tehran into an agreement but fall short of a full-scale attack that could see a major retaliation.
• Sources add, the opening fire, which if authorized, could come within days, would target a few military or government sites.
• If Iran still refused to comply with Trump’s directive to end its nuclear enrichment, the US would respond with a broad campaign against regime facilities.

This news adds volatility to market sentiment, particularly influencing risk assets and safe havens. A military strike against Iran could escalate tensions significantly, likely leading to a spike in oil prices and impacting currencies like the USD and JPY as traders reassess geopolitical risk. While Trump emphasizes diplomacy, the mere consideration of military options suggests a more aggressive posture, which the markets will closely monitor for both immediate reactions and longer-term implications.