Geopolitical Risk: Iran Accuses West of Inciting Domestic Unrest

Tensions in the Middle East remain a critical background driver for global risk sentiment following comments from Iranian President Masoud Pezeshkian. On Saturday, Pezeshkian explicitly accused leaders from the United States, Israel, and Europe of exploiting Irans economic challenges to foment instability.

Blame Game and Market Impact

The President stated that Western powers provided the means to “tear the nation apart” during recent protests. While direct market reaction has been muted compared to the commodities crash, this rhetoric sustains the geopolitical risk premium embedded in energy markets.

For Forex traders, the potential for escalation remains a “fat tail” risk. Any transition from rhetoric to physical retaliation or tighter sanctions could rapidly alter the flow of funds, likely benefiting safe-haven currencies such as the Swiss Franc (CHF) and the US Dollar, while injecting volatility into Crude Oil prices.

• Region: Middle East geopolitical tension remains high.
• Primary Risks: Potential for tighter sanctions and Crude Oil volatility.
• Safe Haven Assets: Market focus on USD and CHF