Vance says Iran has failed to meet U.S. red lines... Tehran 'prepares for war' [Lee Sang-eun's Washington Now]

YM Lee

Summary

It said market anxiety is growing as U.S.-Iran tensions rise and reports point to the possibility of a large-scale military operation.
It noted that President Trump is raising the pressure level on Iran by deploying military assets, including aircraft carriers, to the Middle East.
It said oil prices are reacting sharply, with WTI futures and Brent surging by more than 5% and 4.7%, respectively.

U.S.-Iran tensions are flaring again after reports that Iran has rejected key U.S. demands.

In an interview with Fox News on the evening of the 17th, Vice President JD Vance said Iran failed to address U.S. “red lines” in this week’s nuclear talks and that President Trump has the authority to use military force—further eroding hopes that negotiations can deliver peaceful progress.

Trump administration envoy Steve Witkoff and Jared Kushner held nuclear talks with Iran in Geneva, Switzerland, and up to that point the atmosphere had not been bad. Iranian Foreign Minister Abbas Araghchi said the discussions were constructive and that a general understanding had been reached on basic principles.

But Vance’s remarks to Fox News framed the same situation in a completely different light. “In some ways it went well, and the two sides agreed to hold follow-up talks,” he said. “But in other ways, it’s very clear that Iran is still unwilling to acknowledge and resolve several red lines the president has set.” He went on to say, “We have very powerful military capabilities, and the president has shown a willingness to use them.”

Axios, citing current administration officials, reported that the U.S. is preparing a large-scale military operation against Iran. It said that unlike the arrest of Venezuela’s President Nicolás Maduro in January, it would be closer to an all-out “war.” While this scenario is not confirmed, the mere fact that preparations are being made along such lines has sharply stoked market jitters.

President Trump has already deployed the USS Abraham Lincoln to the Middle East, and the USS Gerald R. Ford is also heading to the region. He has said directly that the moves are in case negotiations collapse, keeping pressure on Iran elevated.

On Iran’s side, reports say Tehran wants an agreement with the U.S. but is also rushing war preparations in case the talks fall apart. Iranian and Russian media reported that a Russian warship arrived in the Strait of Hormuz ahead of military drills scheduled for Thursday and docked at Iran’s port city of Bandar Abbas.

Oil prices are reacting strongly. Front-month WTI futures have risen more than 5% from the previous day, pushing above the mid-$65 range. Brent is also trading above $70 a barrel, up about 4.7% from yesterday.

Washington=Correspondent Lee Sang-eun selee@hankyung.com