|

Iran's Rouhani warns Trump that war with Iran is "mother of all wars" - Reuters

Iran's President, Hassan Rouhani, cautioned US President Donald Trump about pursuing hostile policies against Iran, but didn't go so far as to rule the possibility for peace talks between the two nations.

Key quotes

"Addressing a gathering of Iranian diplomats, Rouhani said: “Mr Trump, don’t play with the lion’s tail, this would only lead to regret,” the state new agency IRNA reported. “America should know that peace with Iran is the mother of all peace, and war with Iran is the mother of all wars,” Rouhani said, leaving open the possibility of peace between the two countries, at odds since the 1979 Islamic Revolution. “You are not in a position to incite the Iranian nation against Iran’s security and interests,” Rouhani said, in an apparent reference to reported efforts by Washington to destabilize Iran’s Islamic government.

In Washington, U.S. officials familiar with the matter told Reuters that the Trump administration had launched an offensive of speeches and online communications meant to foment unrest and help pressure Iran to end its nuclear program and its support of militant groups.

Rouhani scoffed at Trump’s threat to halt Iranian oil exports and said Iran has a dominant position in the Gulf and the Strait of Hormuz, a major oil shipping waterway. “Anyone who understands the rudiments of politics doesn’t say ‘we will stop Iran’s oil exports’...we have been the guarantor of the regional waterway’s security throughout history,” Rouhani said, cited by the semi-official ISNA news agency.

Iran’s Supreme Leader Ayatollah Ali Khamenei on Saturday backed Rouhani’s suggestion that Iran may block Gulf oil exports if its own exports are halted. Rouhani’s apparent threat earlier this month to disrupt oil shipments from neighboring countries came in reaction to efforts by Washington to force all countries to stop buying Iranian oil.

On Sunday, Iran’s ground forces commander became the latest military figure to back Rouhani’s apparent threat, the semi-official news agency Tasnim reported. Separately, a top Iranian military commander warned that the Trump government might be preparing to invade Iran.

“The enemy’s behavior is unpredictable,” Tasnim quoted military chief of staff General Mohammad Baqeri as saying. “Although the current American government does not seem to speak of a military threat, according to precise information it has been trying to persuade the U.S. military to launch a military invasion (of Iran),” Baqeri said.  

Iran’s oil exports could fall by as much as two-thirds by the end of the year because of new U.S. sanctions, putting oil markets under huge strain amid supply outages elsewhere."

Author

Joshua Gibson

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

More from Joshua Gibson
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD edges above 1.1750 due to ECB-Fed policy divergence

EUR/USD has recovered its recent losses registered in the previous session, trading around 1.1760 during the Asian hours on Friday. Traders will likely observe Germany’s Manufacturing Purchasing Managers’ Index data later in the day.

GBP/USD gathers strength above 1.3450 on Fed rate cut bets, BoE's gradual policy path

The GBP/USD pair gathers strength to around 1.3480 during the early Asian session on Friday. Expectations of the US Federal Reserve rate cuts this year weigh on the US Dollar against the Pound Sterling. Philadelphia Fed President Anna Paulson is set to speak later on the weekend. 

Gold climbs to near $4,350 on Fed rate cut bets, geopolitical risks

Gold price rises to near $4,345 during the early Asian session on Friday. Gold finished 2025 with a significant rally, achieving an annual gain of around 65%, its biggest annual gain since 1979. The rally of the precious metal is bolstered by the prospect of further US interest rate cuts in 2026 and safe-haven flows.

Bitcoin, Ethereum and Ripple enter the New Year with breakout hopes

Bitcoin, Ethereum, and Ripple entered the new year trading at key technical levels on Friday, as traders seek fresh directional cues in January. With BTC locked in a tight range, ETH is approaching its 50-day Exponential Moving Average, while XRP is nearing resistance. A clear breakout across these top three cryptocurrencies could help define market momentum in the opening weeks of the year.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is.  Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).