Defense expert Cameron Chell called Iran's military moves a "calculated escalation" as U.S. MQ-9 Reaper drones with strike capabilities were reportedly spotted in the region.

Iran has been joined by Russia and China in deploying naval vessels for a joint live-fire exercise in the Strait of Hormuz, heightening regional tensions even as negotiators from Washington and Tehran met for diplomatic talks aimed at averting a military confrontation.

Oil prices gained over 1% on Wednesday after falling in ​the previous session as investors assessed developments ​in Russia-Ukraine and U.S.–Iran ​talks.

WASHINGTON — A defiant Iran has teamed up with fellow anti-West rogue nation Russia for a series of naval drills in the critical oil chokepoint of the Strait of Hormuz and the Gulf of Oman — despite the Trump administration warning Tehran it’d be “very wise” to cut a deal now.

Global stock markets rose Wednesday as traders assessed company earnings and economic data, while oil prices surged more than four percent on a toughening US posture towards Iran.

Traders are assessing the possibility that the U.S. would attack Iran, and are considering the disruption that could cause to markets.

Top national security officials have told President Trump that the U.S. military is ready for potential strikes on Iran as soon as Saturday.