China's Rocket Launcher Deal with Iran Sets Stage for Escalation

China is reportedly set to send rocket launchers to Iran in a move that could escalate tensions between the US and Iran. The transfer includes shoulder-fired air-defense missile systems aimed at bolstering Iran's defensive capabilities.

This development comes amid ongoing efforts to negotiate a U.S.-Iran deal, which markets are closely watching. Market pricing for a 2026 U.S.-Iran deal reflects a decrease in perceived likelihood, with odds dropping across several sub-markets.

The Fear and Greed Indexes suggest widespread fear across financial markets, including cryptocurrencies, as market participants assess the implications of increased military support for Iran.