Iran’s Islamic Revolutionary Guard Corps has warned that any additional US military strikes would provoke a more decisive response, according to Thursday reports from Reuters citing Tasnim News Agency. The IRGC confirmed it targeted a US airbase in retaliation for an earlier American attack near Bandar Abbas airport, marking a dangerous escalation in direct military confrontation between Tehran and Washington.
The exchange represents a significant deterioration in US-Iran relations with immediate implications for global energy markets and regional stability. Traders should anticipate heightened volatility in crude oil prices as the Strait of Hormuz, through which roughly one-fifth of global oil supply passes, faces increased threat of disruption. Safe-haven assets including gold and the Swiss franc are likely to see buying pressure as geopolitical risk premiums surge.
Defense sector equities may experience upward momentum while emerging market currencies, particularly those in the Middle East, could face selling pressure amid uncertainty over potential supply chain disruptions and broader regional conflict.
FXnCO Insight
Implement protective stops on Middle East-exposed positions and consider scaling into oil longs and safe-haven assets as escalation risks remain elevated.
Source: FXStreet