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IRGC warns of retaliation as Red Sea and US tensions loom
The IRGC also previously warned of closing the Red Sea if the US strikes Iranian infrastructure, adding to geopolitical risk that can shift safe haven and risk-on currencies.
Iran’s Islamic Revolutionary Guard Corps warned it could carry out additional “more crushing” retaliation during the European trading session targeting the United States and countries that host US bases, according to FXStreet.
Earlier in the day, Iran warned of closing the Red Sea if the US strikes Iranian infrastructure, keeping geopolitical tensions in focus for markets.
FXStreet linked the risk outlook to currency moves, describing how “risk off” conditions tend to lift safe haven currencies such as the US dollar, Japanese yen, and Swiss franc, while “risk on” scenarios typically strengthen commodity-linked currencies.
The outlet also noted that in “risk on” markets, investors often buy risky assets, and major currencies can be influenced by expectations for future commodity demand.