US President Donald Trump, in an interview with NBC News on Saturday, expressed his opinion about the military attacks on Kharg Island and whether he is ready to make an agreement with Iran in the face of pressure on his allies once again to help the security of the Strait of Hormuz.
Key quotes
I am not ready to make a deal with Iran because the terms are not yet good enough.
We completely eliminated it. Besides, you know, I haven’t done anything to do with energy lines because it takes ages to restore.
The hits on Harg Island completely destroyed most of the island, but we can hit it a few more times just for fun.
As to whether the US Navy escorts the ships, I don’t want to tell you anything about that.
We are sweeping the very tight strait.
And we believe that we will be joined by other countries that are somewhat obstructing and in some cases obstructing their access to oil.
It is not yet known whether Iran has laid mines in the Strait of Hormuz or not.
The news of the death of the supreme leader of Iran is a rumor.
Speaking about Iran’s decision to target them, Trump said it was the biggest surprise I’ve ever had.
Meanwhile, in a post on Social Truth on Saturday, Trump renewed his call for other countries to help secure the strait.
“The United States has defeated and completely destroyed Iran militarily, economically, and in every way, but the countries of the world that get their oil through the Strait of Hormuz need to take care of this passage and we will help – A LOT.”
Yesterday, Trump wrote about this: “Many countries, especially those affected by Iran’s attempt to close the Strait of Hormuz, are sending warships along with the United States to keep the strait open and secure. We have already destroyed 100% of Iran’s military capabilities, but it is easy for them to send one or two proximity mines or two missiles. Somewhere or in this waterway, whether China, France, Japan, Korea The South, Great Britain and others affected by this artificial restriction are sending ships to the area so that the Strait of Hormuz is no longer threatened by a nation that has completely lost its head.
Meanwhile, the Trump administration has rejected efforts by allies in the Middle East to start diplomatic talks to end the Iran war, Reuters reported on Saturday, citing three sources familiar with the efforts.
Two high-ranking Iranian sources told Reuters that Iran also refused to discuss a ceasefire until the end of the American and Israeli attacks.
Questions about risk perception
In the world of financial jargon, two widely used terms, “risk” and “risk-on,” refer to the level of risk that investors are willing to stomach over a specified period of time. In a “risk-on” market, investors are optimistic about the future and are willing to buy risky assets. In a “risky” market, investors begin to “play it safe” because they are worried about the future, and therefore buy less risky assets that they are more confident will pay off, even if it is relatively modest.
Typically, during “risk-on” periods, stock markets will rise, most commodities, except gold, will also appreciate as they benefit from positive growth prospects. Currencies of countries that are heavy commodity exporters are strengthening due to increased demand and cryptocurrencies are rising. In the “risk-on” market, bonds – especially major government bonds – are gold, and safe-haven currencies such as the Japanese yen, Swiss franc and US dollar are all benefiting.
The Australian Dollar (AUD), Canadian Dollar (CAD), New Zealand Dollar (NZD) and minor currencies such as the Ruble (RUB) and the South African Rand (ZAR) are all rising in markets that are “risky”. This is because the economies of these currencies rely heavily on commodity exports for growth, and commodities tend to rise in price during periods of risk. This is due to the fact that investors anticipate the demand for raw materials in the future due to the increase in economic activity.
The main currencies that rise during “risk-on” periods are the US dollar (USD), the Japanese yen (JPY) and the Swiss franc (CHF). The US dollar, because it is the world’s reserve currency, and because in times of crisis, investors buy US government debt, which is considered safe, because the world’s largest economy is unlikely. Yen, from increased demand for Japanese government bonds, because a high share is held by domestic investors, who are unlikely to dump them – even in a crisis. Swiss Franc, because strict Swiss banking laws offer investors complete capital protection.
