US President Donald Trump confirmed Thursday that negotiations with Iran continue but warned additional US military strikes are expected later today. Speaking to Fox News, Trump stated flatly that “there will be more bombing tonight,” signaling an escalation in military tensions between Washington and Tehran despite ongoing diplomatic channels remaining open.
The announcement creates immediate uncertainty for global markets as traders brace for potential disruption to Middle East oil supplies and broader geopolitical instability. Energy markets are likely to see heightened volatility as approximately one-fifth of global oil passes through the Strait of Hormuz near Iranian waters. The dual-track approach of continued talks alongside promised military action suggests the administration is maintaining pressure while keeping diplomatic options available.
Risk assets face downward pressure while safe-haven currencies including the Swiss franc, Japanese yen, and gold are positioned to benefit from flight-to-quality flows as market participants await confirmation of the promised strikes.
FXnCO Insight
Traders should reduce exposure to risk-sensitive positions and monitor energy sector movements closely as geopolitical premium pricing accelerates into tonight’s anticipated military action.
Source: FXStreet