There are fresh reports that Iran’s missiles have hit an American base near Erbil airport in Iraq’s Kurdistan, Reuters has reported, citing Fars. In addition, Iran has apparently said it is prepared to stop if no US response. Considering that there have been no reports of US casualties following the strike, the US could well decide it is best not to escalate this into a full-blown war. In additional news, we are hearing also reports of intense military jet activity above Iraq capital.
FX implications
Should the threat of war dissipate, we will see markets move back to risk-on and potentially heavily so. If the time was ever for a war between the US and Iran, let alone WW3, it was following this retaliation from Iran.
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