Iran's Parliament Speaker Ghalibaf accuses US of violating MoU
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.
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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
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
