Key insights
- Rising tensions between the US and Iran, with Iran mobilizing for potential ground conflict and fortifying key energy infrastructure. Trump's deployment of troops increases the risk of escalation. Iran warns of expanding strikes across the Gulf if attacked, potentially disrupting oil supplies and impacting global markets. This geopolitical uncertainty creates a risk-off environment for US equities.

Investing.com-- Iran is stepping up military preparations as the risk of a ground operation on its territory rises, reinforcing defenses around key energy infrastructure while signaling a broader escalation across the Gulf, according to Wall Street Journal.
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The moves follow orders from U.S. President Donald Trump to deploy thousands of Marines and Airborne troops to the region. While Trump has not confirmed plans for a ground assault, the buildup is expanding Washington’s options and prompting a more aggressive response from Tehran.
Iran is fortifying Kharg Island, its main oil export hub, widely seen as a potential focal point in any ground conflict. The country is boosting missile defenses, the report added, laying coastal mines and preparing facilities for possible attacks.
Military analysts also point to the likely expansion of underground tunnel networks across strategic islands, allowing Iran to store weapons and maintain operations under fire.
At the same time, Tehran is preparing for a more prolonged and costly confrontation. Iran is positioning itself for a type of conflict where it could offset the U.S. and Israel’s air superiority by increasing the risks to ground forces. That includes deploying tactics seen in regional proxy conflicts, such as the use of wire-guided drones capable of targeting troops and equipment.
Beyond military positioning, Iran is also mobilizing domestically. Recruitment campaigns are being ramped up, drawing on imagery and messaging reminiscent of the Iran-Iraq war in the 1980s, as authorities seek to build public support and manpower for a sustained conflict.
Tehran is also signaling that any escalation would not be contained within its borders. Officials have warned that if its territory is attacked, it could expand strikes across the Gulf, including offshore oil platforms and critical infrastructure such as power plants and desalination facilities.
U.S. President Donald Trump warned of further military escalation against Iran, saying key infrastructure, including bridges and power plants, could be targeted, in a post on Truth Social late Thursday.
“Our Military… hasn’t even started destroying what’s left in Iran. Bridges next, then Electric Power Plants,” Trump said, adding that new leadership in Tehran “knows what has to be done… FAST.”
The remarks mark a sharp escalation in rhetoric following recent U.S. strikes on Iranian infrastructure, including a major bridge, and signal the potential for broader attacks on critical facilities.
Trump’s comments come amid heightened tensions in the region, with Washington previously threatening to target Iran’s energy grid if geopolitical demands, including reopening the Strait of Hormuz, were not met.
In his speech on Thursday, President Trump vowed to hit Iran “extremely hard” in the coming weeks while also suggesting military objectives were “nearing completion.”
The latest statement also suggests a shift toward intensifying pressure for rapid political change.
Targeting civilian infrastructure such as power plants could significantly widen the conflict and disrupt regional energy supplies, raising concerns about global economic fallout.
(Additional reporting by Ayushman Ojha.)