IAEA says there is no increase in radiation levels observed at Iran's Natanz facility
The International Atomic Energy Agency (IAEA) said on Friday that there is no increase in radiation levels at the Natanz facility, which was targeted by Israel. The nuclear watchdog also said the Bushehr nuclear plant has not been targeted.
Earlier on Friday, Iran's atomic agency chief said Natanz nuclear facility was confirmed to have been hit many times and is reported to be "completely destroyed.” However, the IAEA stated that Iran has said that its Bushehr nuclear power plant was not targeted in the overnight attacks by Israel. The Bushehr power plant is Iran's first-ever commercial nuclear reactor.
“The IAEA … can confirm Natanz site among targets. The Agency is in contact with Iranian authorities regarding radiation levels. We are also in contact with our inspectors in the country,” said Director-General Rafael Grossi.
Market reaction
At the time of writing, the West Texas Intermediate (WTI) price is trading 6.83% higher on the day to trade at $72.20.
(This story was corrected on June 13 at 05:40 GMT to say that the sentence “Natanz nuclear facility was confirmed to have been hit many times and is reported to be completely destroyed" was said by Iran's atomic agency chief, not by the International Atomic Energy Agency (IAEA).
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.
Author
Lallalit Srijandorn
FXStreet
Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.
