Trump at Crossroads: Ceasefire or Escalation in Iran War

*This is a summary of global news from Seoul Economic Daily's Global Morning Briefing.*

Hegseth: "Most Intense Attack on Iran Today"...Aims to Permanently Block Nuclear Weapons

U.S. Secretary of Defense Pete Hegseth said on day 11 of the Iran war on the 10th (local time) that "today will be the day of the most intense attack on Iran."

Hegseth claimed Iran is isolated and has suffered significant damage during the ten-day operation, signaling a massive air campaign. The Chairman of the Joint Chiefs of Staff outlined key objectives: destroying Iran's missile and drone launch capabilities, securing safe navigation through the Strait of Hormuz, and weakening Iran's military and industrial infrastructure. Israel also struck underground weapons research facilities in Tehran to neutralize Iran's military capabilities.

The U.S. and Israel claimed to have destroyed a significant number of Iran's drone and missile launchers, but Iran warned of a strong response, insisting its missile capabilities remain intact. Meanwhile, signs emerged that some THAAD systems deployed in South Korea are being relocated to the Middle East as U.S. military resources become strained.

Trump: "Military Operation Nearly Complete"...Iran: "We Decide When It Ends"

The Iran war stands at a crossroads between ceasefire and escalation following President Donald Trump's remarks about an "early conclusion." Trump said military operations are ahead of schedule and "the war will end soon," but warned of a stronger response if Iran blocks the Strait of Hormuz. International oil prices plunged and stock markets rebounded immediately after his remarks. Analysts suggest the U.S. mentioned an early end due to concerns that war-driven oil price increases could fuel domestic inflation and public discontent.

The U.S. is also moving to bring Russia and China into war mediation efforts. Russian President Vladimir Putin discussed ending the war in a phone call with Trump, while China, France, and Turkey have also called on the U.S. for a ceasefire. The U.S. suspended tariffs on India for one month on Russian oil imports, raising the possibility of using Russia as a mediator.

The Center for Strategic and International Studies (CSIS) suggested the U.S. may pursue ceasefire negotiations after a "victory declaration" if Iran's missiles are depleted within two to three weeks. However, analysts point to America's smaller oil reserves compared to China as a factor making prolonged war difficult. China's strategic petroleum reserve stands at approximately 1.4 billion barrels, significantly exceeding America's roughly 400 million barrels, giving China an advantage in a protracted conflict.

Iran, however, maintains a defiant stance and remains negative toward a ceasefire. Iran's parliament and Revolutionary Guards claimed they could block oil exports through the Strait of Hormuz if U.S. and Israeli attacks continue, asserting "we decide when it ends." Experts believe that even if a short-term ceasefire is reached, the possibility of Iran resuming nuclear development and Revolutionary Guards activities could remain destabilizing factors in the Middle East.

Microsoft Partners with Rival Anthropic for 'AI Assistant'

As AI competition intensifies, Big Tech companies are shifting strategies to adopt or collaborate with competitors' technologies. The rise of "AI agents" that autonomously perform tasks has made it difficult to retain customers without embracing external technologies.

Nvidia is reportedly set to launch "NimoClo," based on the open-source AI agent platform "OpenClo." Unlike its previous closed software policy, the platform is designed to run on other semiconductors. China's Tencent also unveiled "WorkBuddy," an OpenClo-based AI agent, as it develops enterprise services.

Microsoft has also decided to integrate "Copilot Cowork," developed in partnership with rival Anthropic, into its Office service M365. This is interpreted as a strategy to absorb competing technologies and explore new opportunities as AI replaces traditional software functions such as document creation and data processing.

Father Wages War, Sons Invest in Drones...Trump Family Faces Conflict of Interest Scrutiny

As low-cost drones emerge as key weapons in the U.S. military conflict with Iran, controversy has erupted over investments by President Donald Trump's two sons in drone companies.

According to The Wall Street Journal, drone company Powerus is pursuing a Nasdaq listing through a merger with golf company Orius Greenway Holdings. Investment bank Dominari Securities and investment firm American Ventures, both backed by the Trump family, are involved in the process. A drone parts company associated with eldest son Donald Trump Jr. is also included as an investor.

Powerus, founded by special forces veterans, is an autonomous drone developer aiming for large-scale drone production. Demand for U.S.-made military drones is expected to surge as the Trump administration pursues policies excluding Chinese drones and supporting the domestic drone industry. Critics are questioning whether the Trump family is seeking to profit from "war dividends" by investing in the growing drone industry amid the conflict.

The Man Who Changed His Words Ten Times in Ten Days—Where Will He Turn Next?