In an interview with NBC News on Saturday, U.S. President Donald Trump commented on the military attacks on Kharg Island and whether he is ready to reach a deal with Iran while once again pressing allies to lend a hand secure the Strait of Hormuz.
Key quotes
I am not ready to make a deal with Iran because the conditions are not good enough yet.
We have absolutely decimated it. Except, as you know, I didn’t do anything to do with the power lines because it would take years to rebuild.
Hitting Kharg Island has completely destroyed most of the island, but for fun we can hit it a few more times.
Whether or not the United States Navy will escort the ships, I don’t want to tell you anything about that.
We will be combing the Strait very difficult.
We believe that we will be joined by other countries that have some difficulties and in some cases difficulties in obtaining oil.
It is unclear whether Iran dropped mines in the Strait of Hormuz.
The news about the Supreme Leader of Iran became a rumor.
Speaking about Iran’s decision to target them, Trump said that was the biggest surprise of the whole thing to me.
Meanwhile, in a Truth Social post delayed Saturday, Trump renewed his appeal to other nations to lend a hand secure the Strait.
“The United States of America has defeated and completely decimated Iran, both militarily, economically and in every other respect, but the countries of the world that receive oil through the Strait of Hormuz must take care of this passage, and we will help – A LOT.”
Earlier in the day, Trump wrote: “Many countries, especially those affected by Iran’s attempt to close the Strait of Hormuz, will be sending warships in cooperation with the United States of America to keep the strait open and safe. We have already destroyed 100% of Iran’s military capabilities, but they can easily send a drone or two, drop a mine or deliver a short-range missile somewhere along or in this waterway, no matter how badly they are defeated. Let’s hope that China, France, Japan, South Korea, Great Britain and other countries affected by this artificial restriction will send ships to the area so that the Strait of Hormuz will no longer be a threat to a completely decapitated nation. Meanwhile, the United States will bomb hell from the shoreline and constantly fire at Iranian boats and ships from the water. Either way, soon the Strait of Hormuz will be OPEN, SAFE, and FREE for President DONALD J. TRUMP.”
Meanwhile, the Trump administration has rejected efforts by Middle Eastern allies to begin diplomatic negotiations to end the war in Iran, Reuters reported on Saturday, citing three sources familiar with the efforts.
Two senior Iranian sources told Reuters that Iran has also rejected ceasefire talks until the U.S. and Israeli attacks end.
Frequently asked questions on risk sentiment
In the world of financial jargon, two commonly used terms, “risk enhancement” and “risk mitigation,” refer to the level of risk that investors are willing to endure over a given period of time. In a “risky” market, investors are hopeful about the future and are more willing to purchase risky assets. In a “risk-free” market, investors begin to “play it safe” because they are concerned about the future, and therefore buy less risky assets that are more likely to produce a return, even if it is relatively modest.
Typically, during periods of increased risk, equity markets rise, and most commodities – except gold – also raise in value as they benefit from positive growth prospects. The currencies of weighty goods exporting countries are strengthening due to increased demand, and cryptocurrencies are rising. In a risk-free market, bonds rise – especially major government bonds – gold shines, and safe-haven currencies such as the Japanese yen, Swiss franc and US dollar all benefit.
The Australian dollar (AUD), Canadian dollar (CAD), New Zealand dollar (NZD) and smaller currencies such as the ruble (RUB) and South African rand (ZAR) tend to rise in risk-off markets. This is because the economies of these currencies rely heavily on commodity exports for their growth, and commodity prices tend to rise during risky periods. This is because investors anticipate greater demand for raw materials in the future due to increased economic activity.
The main currencies that tend to rise during “risk-free” periods are the US dollar (USD), Japanese yen (JPY), and Swiss franc (CHF). The US dollar because it is the world’s reserve currency and also because in times of crisis, investors buy US government debt, which is seen as sheltered because the world’s largest economy is unlikely to collapse. Yen, from increased demand for Japanese government bonds because a gigantic portion is held by domestic investors who are unlikely to abandon them – even in times of crisis. Swiss franc because strict Swiss banking regulations provide investors with better capital protection.
