Trump is currently facing a dilemma regarding military action against Iran. He posted on social media that military objectives are nearing completion and he is considering a gradual de-escalation, while criticizing NATO as a "paper tiger." However, these statements cannot conceal his passive situation: the original plan was to quickly destroy Iran's core capabilities and control oil prices, but now it has become a war of attrition. Soaring oil prices have pushed up US inflation, forcing the Federal Reserve to maintain high interest rates, narrowing expectations of rate cuts, and even raising rates. Gold and US stocks have also come under pressure and fallen, and the goal of a quick victory has completely failed. The current key dilemma lies in this predicament. Escalating the action could trigger a full-scale war, further pushing up oil prices, exacerbating inflation, suppressing expectations of rate cuts, and dragging down stock and gold prices. De-escalation, on the other hand, risks being accused of weakness, affecting votes, and facing the dual pressures of allies shifting blame and domestic political division, while the high inflation and falling asset prices will also be difficult to alleviate. His so-called "tactical de-escalation" is actually a stop-loss choice made in this dilemma. It is neither a graceful exit nor a complete victory. With persistent inflationary pressures, fluctuating expectations of interest rate cuts and hikes, and pressure on gold and US stocks, the predicament is likely to continue. For BTC to merely fluctuate without falling in this situation would be the best-case scenario.
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