Iran Would Be Wise to Cut a Deal, Hegseth Says

U.S. Secretary of Defense Pete Hegseth said at a Pentagon briefing that Iran would be wise to cut a deal with the U.S. and asserted that a regime change has occurred. The comment increases geopolitical risk and could push risk-off flows, potentially supporting defense contractors and putting upside pressure on oil prices in the near term.

Analysis

U.S. Secretary of Defense Pete Hegseth said at a Pentagon briefing that Iran would be wise to cut a deal with the U.S. and asserted that a regime change has occurred. The comment increases geopolitical risk and could push risk-off flows, potentially supporting defense contractors and putting upside pressure on oil prices in the near term.