U.S. President Donald Trump delivered a stark warning over the Iran war during his address to the United Nations General Assembly on September 22, putting both diplomacy and further military escalation on the table.
Trump said he faces a “big decision” over whether to reach an agreement that would allow Iran to rebuild, or take much more severe military action against the Islamic Republic. He warned that without a deal, the United States could “annihilate” Iran.
At the same time, Trump indicated that diplomacy remains possible. He said he believes a deal could eventually be reached after the U.S. midterm elections in November, while insisting that Iran must not be allowed to obtain a nuclear weapon.
Trump also criticized Iran over the continued disruption of the Strait of Hormuz, a critical route for global energy shipments, and urged international pressure on Tehran.
The speech therefore delivered two very different signals to financial markets: the threat of further escalation remains, but negotiations are still on the table.
