Iran’s top negotiator Mohammad Bagher Ghalibaf accuses the United States (US), through a post on X, formerly known as Twitter, of violating major terms of the memorandum of understanding (MoU) signed for a ceasefire in the Middle East.
Iran’s Ghalibaf lists major US violations of MoU
Major MOU Violations by the US.
Violating Iranian adjustments in the Strait
Persistent threats of further strikes.
Reinstating oil sanctions.
Attacks on southern Iran.
Continued Zionist aggression on.
Iran’s top negotiator Ghalibaf also warned that the nation won’t bow to the US, stating, “The era of bullying and extortion is over. It leads nowhere. We don’t fold.”
Also, a spokesperson from Iran’s top joint military command says the US army targeted parts of Southern Iran in ‘blatant aggression’ and warns that our armed forces will give ‘crushing response’ to US attacks. Iran’s military forces reiterate that it won’t allow the US interference in the management of the Strait of Hormuz, a critical chokepoint to almost one-fifth of global energy supply. The spokesperson added, “Only safe route for commercial ships, oil tankers in the Hormuz is one set by Iran.”
Market reaction
No immediate action is seen in the US Dollar (USD) following remarks from Iran’s top negotiator Ghalibaf. At press time, the US Dollar Index (DXY) trades marginally lower to near 101.12
Risk sentiment FAQs
In the world of financial jargon the two widely used terms “risk-on” and “risk off” refer to the level of risk that investors are willing to stomach during the period referenced. In a “risk-on” market, investors are optimistic about the future and more willing to buy risky assets. In a “risk-off” market investors start to ‘play it safe’ because they are worried about the future, and therefore buy less risky assets that are more certain of bringing a return, even if it is relatively modest.
Typically, during periods of “risk-on”, stock markets will rise, most commodities – except Gold – will also gain in value, since they benefit from a positive growth outlook. The currencies of nations that are heavy commodity exporters strengthen because of increased demand, and Cryptocurrencies rise. In a “risk-off” market, Bonds go up – especially major government Bonds – Gold shines, and safe-haven currencies such as the Japanese Yen, Swiss Franc and US Dollar all benefit.
The Australian Dollar (AUD), the Canadian Dollar (CAD), the New Zealand Dollar (NZD) and minor FX like the Ruble (RUB) and the South African Rand (ZAR), all tend to rise in markets that are “risk-on”. This is because the economies of these currencies are heavily reliant on commodity exports for growth, and commodities tend to rise in price during risk-on periods. This is because investors foresee greater demand for raw materials in the future due to heightened economic activity.
The major currencies that tend to rise during periods of “risk-off” are the US Dollar (USD), the Japanese Yen (JPY) and the Swiss Franc (CHF). The US Dollar, because it is the world’s reserve currency, and because in times of crisis investors buy US government debt, which is seen as safe because the largest economy in the world is unlikely to default. The Yen, from increased demand for Japanese government bonds, because a high proportion are held by domestic investors who are unlikely to dump them – even in a crisis. The Swiss Franc, because strict Swiss banking laws offer investors enhanced capital protection.
Source: Original Article
