Breaking: Iran says no more attacks against neighbouring countries “unless they attack first”

FXStreet Team FXStreet

During an address broadcast by Iranian state TV, President Masoud Pezeshkian apologised to the neighbouring countries for attacks launched following US-Israel strikes but asserted that Tehran will not strike "unless they attack first".

Key quotes

I must apologise on my own behalf and on behalf of Iran to the neighbouring countries that were attacked by Iran.

The interim leadership council agreed yesterday that no more attacks will be made on neighbouring countries and no missiles will be fired unless an attack on Iran originates from those countries.

Tehran would "not surrender" to US President Donald Trump's demands of “unconditional surrender”.

The comments come after Iran launched attacks on Gulf countries hosting US forces with waves of retaliatory missile and drone strikes since the US-Israeli attacks began last Saturday.

Market implications

The Iranian President’s address could be seen as the first step toward de-escalation. However, unless Iranian forces provide some assurance on the safe resumption of commercial traffic through the Strait of Hormuz, market panic and uncertainty are expected to remain high.

The deepening Middle East conflict sent oil prices through the roof, with West Texas Intermediate (WTI) having surged roughly 32% over the week to its highest level since October 2023 at $90.

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

AUD/USD keeps range near mid-0.7100s as USD bulls await US CPI

AUD/USD steadies near mid-0.7100s in the Asian session on Friday, stalling the previous day's sharp decline to an over one-week low. The August PPI report reaffirmed Fed rate-hike bets and boosted the US Dollar on Thursday, which weighed heavily on the pair. However, hawkish RBA expectations limited losses for the Aussie as USD bulls now await the release of the US consumer inflation figures before placing fresh bets.

USD/JPY holds lower ground toward 154.00; looks to US CPI

USD/JPY holds lower ground toward 154.00 in the Asian session on Friday after hot Japanese PPI data bolster a more hawkish BoJ repricing and provide fresh impetus to the Japanese Yen. However, the downside appears capped as the US Dollar preserves overnight gains ahead of the latest US consumer inflation data.

Gold: Gains remain capped by $4,400

Gold regains composure and trades with decent gains on Friday, managing to refocus attention on the $4,440 mark per ounce troy. Therefore, the precious metal reverses Thursday’s decline as the US Dollar alternates gains with losses at the end of the week.

Week ahead: Fed, BoJ and BoE decide amid inflation dilemma

A crucial central bank week looms for markets as both the Federal Reserve and Bank of Japan are under pressure from all sides, with their credibility at stake. The Bank of England looks set to have an easier ride, at least for now, while inflation releases will be watched too as war continues to rage in the Middle East.

CFTC Report: Japanese Yen reversal leads a broader positioning reset

The week in one sentence: Yen positioning swung back into net longs in the week to September 8, leading to a 103.0K-contract improvement. Canadian Dollar shorts also fell sharply, while Oil buying accompanied another price rise. Euro, Sterling and Swiss Franc positioning weakened despite firmer currencies, leaving those moves unconfirmed by speculative flows.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.