Is the ‘special’ U.S.-U.K. relationship dying out?

Iran is a threat and the US and Britain are seen to be acting outside of their alliance which is raising eyebrows.
Markets are on risk-off alert and the usual suspects, such as the Yen and CHF are buoyed.

Britain announced Monday that it would form its own European-led patrol of Persian Gulf waters, where Iran seized a British oil tanker Saturday, rather than join an American-led effort.

Britain styling out a safe-shipping mission in Strait of Hormuz (Oil bullish)

Prior to this, and according to a Time article, "Former British Conservative leader Iain Duncan Smith told the BBC that Theresa May had turned down a U.S. offer of help in the Persian Gulf before Iran seized Britain’s oil tanker, apparently demurring because she didn’t want to increase the risk of being drawn into an armed conflict."

"This follows the unprecedented decision by the Trump administration to withhold detailed information from Britain ahead of a planned U.S. military strike on Iran, later aborted, following the shooting down of an American drone.

Four senior administration officials confirm to TIME that they left the Brits out of the planning, conceding that was “unusual” but blaming it on the speed of the response."

Market implications

There are no direct implications to this prospect, but it does underline the U.S.'s independence when it comes to military action. So far, Trump has not been as hot-headed as some critics had suggested he would be under such circumstances and has taken a wait and see approach when it comes to Iran. In any case, markets are on risk-off alert and the usual suspects, such as the Yen and CHF would likely be a little lower if it not for such tensions.

WTI unable to sustain the $57 handle in Asia, eyes on 23.6% Fibo support

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