Iran’s deputy president Esmaeil Saqab Esfahani has issued a warning to the United States, stating that Iran will respond with 'an eye for an eye' if its oil wells are targeted by strikes, as reported by Mehrnewsagency and The Guardian [1]. Esfahani specifically threatened to attack the oil facilities of any country from whose territory Iranian oil infrastructure is attacked [1]. He also reassured Iranian citizens that there is no need to worry about their energy supply, as 'necessary arrangements' have been made [1].
In response to the escalating tensions, US Defense Secretary Pete Hegseth and the chair of the Joint Chiefs of Staff Dan Caine announced an upcoming press conference on Operation Epic Fury, which involves the bombing of Iran, scheduled for 08:00 AM ET (12:00 GMT) [1]. The article highlights the heightened risk-off sentiment in financial markets during such periods of geopolitical uncertainty, which typically leads to increased demand for safe-haven assets like US government bonds, gold, and currencies such as the US Dollar, Japanese Yen, and Swiss Franc [1].
No specific market reactions or analyst opinions are provided in the article, but the context suggests that investors may shift towards safer assets amid the rising tensions between Iran and the US [1].
CONCLUSION
The escalating rhetoric between Iran and the US over oil strikes, coupled with the announcement of Operation Epic Fury, signals a period of heightened geopolitical risk. This development is likely to drive risk-off sentiment in financial markets, with investors seeking safety in traditional haven assets.