US President Trump: US intends to restore nearly all UN sanctions on Iran

Anil Panchal FXStreet

During his daily press conference, US President Donald Trump showed readiness to announce punitive measures on Iran.

Key quotes

US intends to restore nearly all UN sanctions on Iran.

Reuters relies on the United Nations (UN) official to convey that the US Secretary of State Mike Pompeo will likely travel to New York on Thursday to seek a return of all UN sanctions on Iran and meet with UN Secretary-General Antonio Guterres.

The news also said, "To trigger a return of the sanctions, the United States will submit a complaint to the 15-member U.N. Security Council about Iran's non-compliance with the nuclear deal, even though Washington quit the accord in 2018. Pompeo will likely meet with Indonesia's U.N. Ambassador Dian Triansyah Djani, the Security Council president for August, to submit the complaint, diplomats said. Pompeo is also due to meet with Guterres, a U.N. official said."

It should also be noted that the Reuters' update highlight, "Once Washington submits its complaint about Iran to the Security Council, the body has 30 days to adopt a resolution to extend sanctions relief for Tehran or else the measures will automatically snapback. Any attempt to extend the sanctions relief would be vetoed by the United States."

Market reaction

With the news add geopolitical risk to already gloomy market conditions, the risk barometer AUD/JPY remains on the back foot near 76.20 by the press time of early Thursday morning in Asia. The update should have helped oil prices but couldn’t combat the latest US dollar strength as WTI struggles to regain $43.00.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

GBP/USD approaches May highs near 1.3650 on renewed USD selling

GBP/USD approaches the May high, while trading near 1.3650 in the European session on Thursday. The US Dollar slips again even as markets assess whether the US Treasury buyback will be a game-changer. Attention now remains on US data and Middle East headlines for further trading impetus.

EUR/USD hits fresh three-month highs above 1.1700

EUR/USD is at its highest level in three months, above 1.1700, in European trading on Thursday. The pair regains traction as the US Dollar resumes its downside, led by the US Treasury's bond buyback plan.. US Jobless Claims data are next in focus amid lingering Iran risks.

Gold stays in red below $4,500 despite resurgent USD supply

Gold sticks to modest intraday losses and remains below the $4,500 mark in the European session on Thursday. Despite geopolitical uncertainties, the US Dollar loses ground again, resuming the previous day’s slump to a three-month low.

Bitcoin extends gains above $71,000 as liquidity conditions improve

Bitcoin extends its gains, inching toward $72,000 on Thursday, as crypto markets continue to cheer the US Treasury’s decision to double its debt buyback operations. The move has sharply improved market sentiment and liquidity conditions, helped trigger a short squeeze, and overall provided a positive catalyst for the broader crypto market.

The bond coup

Yesterday was marked by a coup from the US Treasury, which suddenly announced that it will ‘at least double’ the maximum size of its buyback operations for longer-term debt, hoping to ease pressure on long-term yields and borrowing costs. Phoah! The markets reacted heavily to the news. The US 10-year yield fell sharply, while the 30-year yield dropped from its highest levels since 2007.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.