US President Trump's team is now discussing options for military escalation to break the deadlock, Axios reports; US officials don't expect Trump to take any dramatic steps during his trip but think he could make his next move immediately afterwards

The reported discussions within President Trump's team regarding military escalation signal potential shifts in U.S.

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US President Trump's team is now discussing options for military escalation to break the deadlock, Axios reports; US officials don't expect Trump to take any dramatic steps during his trip but think he could make his next move immediately afterwards

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US President Trump on Tuesday appeared to suggest prioritising stopping Iran from obtaining a nuclear weapon even if it carries domestic economic costs - advisers cited by Axios said the wording was poor and likely to be used in Democratic campaign ads

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OPTIONS

  • US officials say one option is to resume "Project Freedom," with the Navy attempting to break the logjam in the Strait of Hormuz.
  • Another is to launch a new bombing campaign focusing on Iranian infrastructure, as Trump has repeatedly threatened.

ISRAEL

  • Israeli officials say they'll be on high alert this weekend in case Trump decides to resume the war. Any such operation would take place in coordination with the Israeli military, the officials say.
Context

foreign policy, particularly concerning Iran. While officials anticipate limited immediate action during Trump's trip, any decisive moves post-visit could heighten geopolitical tensions, impacting market dynamics in assets like oil, gold, and broader currency flows, particularly the USD and JPY.

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