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The Pentagon is developing military options for a “final blow” in Iran that could include the use of ground forces and a massive bombing campaign to end the ongoing conflict, Axios reported on March 26, 2026.
A military escalation has grown increasingly likely as diplomatic talks fail to progress while the Strait of Hormuz remains closed. US officials believe a crushing show of force is necessary to create leverage in peace negotiations or to provide US President Trump with a definitive victory.
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The strategic focus centers on four major “final blow” options: invading or blockading the Kharg Island oil hub, seizing Larak Island to neutralize Iranian attack craft and radars, occupying the strategic island of Abu Musa near the western entrance to the strait, or blockading tankers exporting oil on the eastern side of the waterway, according to Axios.
The US military has also prepared high-risk contingency plans for ground operations deep inside the Iranian interior. These missions would specifically target nuclear facilities to secure highly enriched uranium buried within hardened bunkers. Alternatively, the administration is considering large-scale air strikes on power plants and energy infrastructure to cripple the regime’s capacity to continue the fight.
While White House officials describe ground operations as hypothetical, Axios sources emphasized that the President is ready to escalate if a deal is not reached soon.
Military reinforcements, including several fighter jet squadrons and thousands of troops, are expected to arrive in the Middle East in the coming weeks. A Marine expeditionary unit is scheduled to arrive this week, while the command element of the 82nd Airborne Division has been directed to deploy with an infantry brigade.
In response, Iranian officials have expressed deep skepticism. Speaker of Parliament Mohammad Bagher Ghalibaf warned that any attempt to occupy Iranian islands would trigger relentless attacks on the vital infrastructure of regional countries supporting the US offensive.
Swiss banks operating in the Gulf have previously shifted staff to remote work following threats from Iran’s parliamentary speaker targeting financial institutions linked to US debt holdings. Mohammad Bagher Ghalibaf, speaker of the Iranian parliament, declared on X that financial institutions financing the US military budget—specifically those holding US Treasuries—are now considered “legitimate targets.”
This warning has immediate implications for Switzerland’s private banking sector, including UBS, Julius Baer, and Lombard Odier, which maintain a significant presence in regional hubs like the Dubai International Finance Centre. While large-scale evacuations have been avoided, many institutions have implemented precautionary work-from-home policies and activated emergency relocation plans as the threat of drone or missile strikes remains elevated across the Gulf.
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