Analysis: Trump bets on short-term gain (and risks long-term pain) with Iran threats
By James Matthews, US correspondent
I’m inside the Andrew W Mellon auditorium, a couple of miles from the White House, awaiting the president’s arrival.
He’s due here late morning for the launch of the “Trump Accounts”, an investment scheme whereby the government deposits $1,000 for every child born between 2025 & 2028.
Kevin O’Leary’s currently on stage extolling its virtues – he’s one of the stars of America’s TV show Shark Tank, the US equivalent of Dragon’s Den.
So far, so benign – nobody in this audience questions the value of giving kids money.
The stage hasn’t been a place for politics of a harder edge – not that it’s stopped Donald Trump.
Ahead of his speech, he’s been busy lobbing headlines onto Truth Social.
Threatening Iran? I’m not sure it’s a big surprise.
The bigger his domestic troubles, the more likely it surely is.
A month of retreat
Trump is a president for whom January 2026 has been a month of retreat.
On Greenland, Minneapolis and on insulting NATO troops, he has backed down and backed himself into a position that appears weakened.
It’s a chaotic look for a president who craves control.
He will consider that flexing his muscles on Iran provides the distraction to stop the drift.
Carrying through with the threat is fraught with danger, politically and militarily, but these are decisions for another day.
Today’s presidential priority is to change the conversation from weakness in the White House to strength.
Watch Matthews reporting from Washington here…
