The Donald Trump administration is reportedly preparing for a possible resumption of major combat operations in Iran, and Tehran's celebration of Republican midterm setbacks is not helping the diplomatic mood.

Preparing for Round Two

The U.S. military is wrapping up preparations for a potential return to major combat operations in Iran, including deploying additional military assets to the region, Axios reported on Wednesday, citing officials.

Meanwhile, Qatar is attempting to secure Washington and Tehran's backing for a draft agreement that could prevent renewed fighting and potentially restart direct negotiations in the coming days.

Before the midterm elections, Qatari mediators reportedly asked White House officials how Trump would respond if Republicans suffered electoral losses. His advisers could not offer a definitive answer.

Tehran Pours Salt in the Wound

Iranian officials have portrayed the Democrats' strong midterm performance as evidence of growing American opposition to the war.

Iranian Parliament Speaker Mohammad Bagher Ghalibaf wrote on X that Americans had rejected the conflict, saying, "Conscience or the cost of living, Americans said NO TO WAR, and we endorse this message."

That may feel good in Tehran, but diplomats, Trump advisers and Middle East experts warned that the celebration could provoke a tougher response from the president.

Ali Vaez, deputy program director for the Middle East and North Africa at the International Crisis Group, told the publication that Iran risks mistaking Trump's political vulnerability for military weakness.

The Pressure Track

CIA Director John Ratcliffe, Treasury Secretary Scott Bessent and others reportedly want the president to extend the naval blockade and economic pressure campaign against Tehran.

Trump has repeatedly vowed to end the war, one way or another, following the midterm elections. One former adviser told the publication that while losing the midterms was one setback, Trump would be unwilling to risk appearing "like a loser twice."

Markets were mixed early Thursday. Dow futures rose 140 points, or 0.26%, to 53,643.00, while S&P 500 futures fell 14 points, or 0.18%, to 7,706.50 and Nasdaq 100 futures declined 239 points, or 0.84%, to 28,327.75 as of 10:57 p.m. EST.

In commodities, WTI crude oil fell 1.50% to $86.80 per barrel, while Brent crude declined 1.04% to $93.64 per barrel.

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