US-Iran tensions impact global markets and energy security

Global markets have seen an increase in risk appetite following statements by US President Donald Trump suggesting that military actions against Iran may not be long-lasting. This has contributed to a decrease in Brent crude oil prices and a slight drop in US 10-year Treasury yields.

Amidst ongoing tensions, Trump stated that US actions and sanctions are intended to assist Israel and the Middle East, claiming that Iran’s economy has collapsed and its military capabilities are severely diminished. He asserted that the US now controls the Strait of Hormuz.

In response, the Governor of the Central Bank of Iran, Abdonnasir Himmeti, refuted claims of economic collapse, stating that Iran possesses sufficient foreign exchange reserves. Himmeti noted that while sanctions are extensive, the country's economic system remains functional and expressed readiness to supply up to $2 billion to the market to stabilize fluctuations.