U.S. President Donald Trump warned on Wednesday that American forces would launch additional strikes against Iran if Tehran continues to 'misbehave' and rejects a diplomatic agreement.

The comments, reported by Bloomberg, mark a further escalation in the diplomatic standoff that has already triggered volatility across global markets.

The president characterized the ongoing negotiations as a critical juncture, signaling that military options remain on the table should diplomatic channels fail.

Markets are, with energy prices and shipping rates sensitive to any further deterioration in U.S.-Iran relations.

Traders are pricing in elevated geopolitical risk premiums as the administration hardens its stance ahead of the next diplomatic deadline.