November 30, 2022

US–Iran tension is mounting: Sanctions against Tehran soon in force

LQDFX news blog: US–Iran tension is mounting: Sanctions against Tehran soon in force

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According to the US Secretary of State the White House will provide detail regarding the implementation of new sanctions to Iran on Monday. US–Iran tension is mounting.

Washington will reimpose “snapback” sanctions following Trump’s decision to pull the States out of the 2015 Iran nuclear Deal (JCPOA).

The US President ignored pleas by the European allies to preserve the deal and Iran warnings that US would regret its decision to exit the deal. Back then, in early May, Trump characterized Iranian regime “the leading state sponsor of terror”.

So, US will reimpose sanctions on Iran’s purchases of U.S. dollars, its trade in precious metals, and its dealings with metals, coal and industrial-related software.

Iran, in response, announced that it will ease currency rules to stop a downfall of their national currency, the Iranian rial.

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Trade Concerns linked to US–Iran tension, Brexit and Trade War

Trade dispute among the USA and its trading partners buy into the greenback. Beijing proposing tariffs on $60 billion (£46.27 billion) worth of U.S. goods on Friday in response to the US ones. Although the tit-for-tat tariffs support the greenback, they put pressure on currencies vulnerable to a worsening trade conflict. Currency markets remain cautious.

The Dollar inched up 0.3% against its major traded rivals, towards a 13-month peak. The greenback gained against emerging-market currencies.

The Euro dropped 0.4% to a 5-week low against the greenback following the pressure caused by the US Dollar strengthening.

The Sterling slipped 0.3% to an 11-month low following reports about no-deal Brexit and therefore respective concerns.

Oil prices headed higher as Saudi Arabia output dropped out of the blue in July. Brent crude oil has increased 68 cents.

Gold prices edged down 0.17% and silver prices dropped 0.29% an ounce following a rebound of Friday from a 17-month low.

Sources: Reuters, CNN money, bbc