Rubio Signals New Escalation Against Iran
US Secretary of State Marco Rubio warned that military attacks on Iran could escalate. He assessed that Tehran is not yet ready to reach a peace agreement acceptable to Washington.
Rubio said Iran will "pay a higher price" if it continues to reject diplomacy. He stated that pressure on Iran will continue to increase nightly until Tehran changes its stance.
This statement reinforces the signal that the US will not end its military pressure anytime soon. Washington believes Iran has not shown seriousness in reaching an agreement, especially amidst increasing attacks and disruptions to regional energy routes.
Rubio also hopes the Houthi group will cease attacks and de-escalate. He said the Houthis have become trapped under Iranian influence, after the group threatened shipping lanes in the Red Sea and increased the risk of oil supply disruptions.
Meanwhile, Rubio emphasized that the US is not easing sanctions on Hong Kong. He noted that a large number of individuals in Hong Kong remain on the US sanctions list.
As for the market, Rubio's statement could maintain high geopolitical tensions and support oil prices as the risk of disruptions in the Strait of Hormuz and the Red Sea remains unabated. For gold, war sentiment could support safe-haven demand, but rising oil prices could also fuel inflation and reinforce expectations of high interest rates. Meanwhile, the US dollar has the potential to remain strong as investors seek safe assets. (arl)
Source: Newsmaker.id
