U.S. Treasury Secretary Scott Bessent stated that Washington intends to impose sanctions on Iran that have never before been applied, according to Reuters.
He warned that further announcements will follow next week, indicating that the forthcoming measures will represent a level of economic pressure unseen in the history of sanctions against a nation.
Earlier on Thursday, Hossein Taeb, a senior commander of Iran’s Islamic Revolutionary Guard Corps, declared that the Strait of Hormuz falls under Iranian jurisdiction, countering a claim by former President Donald Trump that the United States maintains complete control over the waterway, as reported by Fox News.
Taeb affirmed that the Strait of Hormuz is presently administered by the Islamic Republic, adding that Iran will continue its course securely.
The Khatam al-Anbiya Central Headquarters, Iran’s joint military command, asserted that no vessel may pass through the critical waterway without Tehran’s approval.
On Thursday, the United Arab Emirates reported that Iranian forces had targeted two of its ships while they were traversing the Strait of Hormuz, condemning the act as a flagrant breach of maritime law.
U.S. Vice President JD Vance expressed confidence that America will emerge from its confrontation with Iran in a position of strength, especially regarding Tehran’s nuclear ambitions and the stability of fuel prices for U.S. consumers.
Market reaction
At present, West Texas Intermediate (WTI) crude is trading up 0.18% on the day, at $81.50 per barrel.
Risk sentiment FAQs
In financial terminology, “risk‑on” and “risk‑off” describe the degree of risk that investors are willing to assume during a given period. A “risk‑on” environment reflects optimism about future returns, prompting investors to purchase riskier assets. Conversely, a “risk‑off” setting signals caution, leading investors to favor safer assets that promise more certain, albeit modest, returns.
Typically, during “risk‑on” periods, equity markets tend to rise, and most commodities—excluding gold—also gain value, as they benefit from expectations of stronger economic growth. The currencies of major commodity‑exporting nations strengthen due to heightened demand, and cryptocurrency markets often experience gains.
In “risk‑on” markets, the Australian Dollar (AUD), Canadian Dollar (CAD), New Zealand Dollar (NZD), as well as minor currencies such as the Russian Ruble (RUB) and South African Rand (ZAR), generally appreciate. These currencies are closely tied to commodity exports; as commodity prices increase during risk‑on phases, their respective economies and monetary units benefit from anticipated heightened demand for raw materials.
During “risk‑off” periods, major currencies such as the U.S. Dollar (USD), Japanese Yen (JPY), and Swiss Franc (CHF) tend to appreciate. The U.S. Dollar strengthens because it serves as the world’s reserve currency and investors gravitate toward U.S. Treasury securities, perceived as safe havens amid crisis. The Japanese Yen gains strength due to robust domestic demand for Japanese government bonds, which are predominantly held by Japanese investors and thus remain stable even under stress. The Swiss Franc benefits from Switzerland’s stringent banking regulations, which provide enhanced capital protection for investors.
