Ongoing limited strikes and diplomatic maneuvering between the United States and Iran, including recent Iranian warnings of retaliation and President Trump's statements on military options or renewed talks at the United Nations General Assembly, continue to shape assessments of escalation paths. Congress has passed multiple war powers resolutions seeking to constrain further action without formal authorization, yet no declaration has occurred despite months of conflict that began in February 2026. Traders weigh the constitutional requirement for congressional action, depleted munitions stockpiles, regional mediation efforts focused on the Strait of Hormuz and nuclear issues, and the preference for targeted operations or sanctions over a full declaration. Scheduled diplomatic contacts and midterm political pressures add near-term variables that could influence momentum.