US reportedly weighs strike options on Iran, including a large non-nuclear bomb

What happened

According to reports, the US military has drawn up options for strikes on Iran. Those options are said to include the possible use of one of the biggest non-nuclear bombs in the US arsenal.

Iran has vowed to continue fighting, according to the same reporting. No decision on any strike has been confirmed in the report.

Why it matters

Military escalation involving Iran touches the oil market first, because the region is central to global crude supply and shipping routes. Headlines about potential strikes tend to widen the range of outcomes traders are pricing for energy, which can feed through to inflation expectations and wider risk appetite.

Geopolitical stress of this kind also tends to put gold and the dollar in focus as assets investors turn to when uncertainty rises, while equity indices can react to shifts in risk sentiment. Because the situation is driven by reports and official statements rather than scheduled events, price swings can arrive without warning and in either direction.

What to watch

Further reporting on whether the US acts on any of the prepared strike options, official confirmation or denial from Washington, and continued statements from Iranian officials on their stance.