The latest update from the Washington Post (WaPo) suggests the US Secretary of State Mike Pompeo’s failure to garner enough support to extend an arms embargo against Iran at the United Nations Security Council meeting. The news came out during the late-Tuesday in the US and suggests an increase in geopolitical tension amid China’s tussles with the US and India.
Key quotes
Secretary of State Mike Pompeo urged the United Nations Security Council on Tuesday to extend an arms embargo against Iran due to expire in four months, but he faced resistance from China, Russia and even European allies that share his concerns about Iran’s missile and nuclear activities.
In a virtual meeting of the Security Council, Pompeo labeled Iran ‘the world’s most heinous terrorist regime’ and warned it would develop and export weapons that would threaten the Middle East and European capitals.
He said lifting the ban on the trade of conventional weapons would turn Iran into a ‘rogue weapons dealer,’ supplying advanced weapons to groups like Hamas and Hezbollah and fueling conflicts in Venezuela, Syria and Afghanistan.
Pompeo was no longer listening to the debate when Iranian Foreign Minister Mohammad Javad Zarif appeared at the end. Zarif pointedly started and ended his remarks by quoting Mohammad Mossadegh, the elected Iranian prime minister who was overthrown in a 1953 CIA coup. Zarif said the expiration of the arms embargo was an integral part of the 2015 nuclear deal and demanded the United States compensate Iran for the damage its sanctions have inflicted on the economy.
Market implications
The news could offer additional strength to the WTI, currently attempting a break of $40.00, while also weighing on the risk-tone sentiment. However, no major market response could be found after the release as the S&P 500 Futures stays mildly positive around 3,090 by the press time.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD turns negative near 1.0760
The sudden bout of strength in the Greenback sponsored the resurgence of the selling pressure in the risk complex, dragging EUR/USD to the area of daily lows near 1.0760.
GBP/USD comes under pressure and challenges 1.2500
GBP/USD now rapidly loses momentum and gives away initial gains, returning to the 1.2500 region on the back of the strong comeback of the US Dollar.
Gold retreats from highs on stronger Dollar, yields
XAU/USD trims part of its initial advance in response to the jump in the Dollar's buying interest and the re-emergence of the upside pressure in US yields.
XRP tests support at $0.50 as Ripple joins alliance to work on blockchain recovery
XRP trades around $0.5174 early on Friday, wiping out gains from earlier in the week, as Ripple announced it has joined an alliance to support digital asset recovery alongside Hedera and the Algorand Foundation.
Week ahead – US inflation numbers to shake Fed rate cut bets
Fed rate-cut speculators rest hopes on US inflation data. After dovish BoE, pound traders turn to UK job numbers. Will a strong labor market convince the RBA to hike? More Chinese data on tap amid signs of slow Q2 start.