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US – Iran tension, are we going to war or is it just skirmishes? How will the markets decode the scene?

Jan 9 2020, 08:51 AM (+06) | ATFX

In the early hours of Wednesday the 8th of January 2020, the Pentagon confirmed the attacks targeting two American bases on Iraqi soil with fifteen ballistic missiles launched from Iranian territory. According to US military sources, via ABC news networks, ten of these missiles targeted Ain Al-Assad base in Western Iraq – the largest US military base in the country, one missile targeted Erbil base on the Northern side, and four missiles failed to reach their targets. While Iraqi sources reported a number of 22 missiles launched from the Iranian soils, with no causalities reported.

The Iranian attack comes in response to the killing of the Quds Force Commander of the Iranian Revolutionary Guards, in an American drawn strike at dawn last Friday. Following the missile strikes, several Iranian statements warned the US from taking any response, which would lead to an All-out war in the region.

The US reports denied any losses in the ranks of the American forces, but hasn’t denied equipment losses. As from Tehran’s side, the reports claimed that the strike had hit the specified targets claiming the lives of 80 US soldiers.

The markets have responded rapidly, the gold recorded an increase of around 37$ per ounce as an immediate response to the dangerous development of events, as it rose from the levels of 1574 to 1611.50, an increase of about 2.3%.

As for oil, the US light crude prices rose to the levels of 65.61$, a direct translation to the markets fear of supply shortages due to the escalating events in the Middle East; a vital zone to energy markets.


While Brent crude recorded increases to the levels of 71.26 $, it is noticeable that oil prices rebalanced those quick gains after the lukewarm US statements. This reduction can be explained as well following the statements of the Minister of Energy in the United Arab Emirates, in which he assured that an urgent meeting of OPEC and its partners is not needed, and that OPEC is ready to deal with any new developments to maintain oil supplies and price stability.

Until now, the markets are analyzing the scene as mere skirmishes between the two parties, and that the missile strike is just a limited reaction from the Iranian side to “avenge” the death of their influential military man. Until this moment, this interpretation is reinforced by the calm American reaction. Even the US President did not set up an urgent press conference to comment on the event. This might indicate that the American administration prefer to manage the situation calmly, contrary to what was expected from the US President, especially according to his previous tweets which avowed that the United States will respond strongly and rapidly to any reaction from the Iranian side on American Targets. A promise that was not fulfilled, at least not up until now.


Information provided by ATFX (AE) Head of Market Research: Ramy Abouzaid
Legal: AT Global Markets (UK) Limited is authorised and regulated by the Financial Conduct Authority (FCA) in the United Kingdom. FCA registration number (760555). Registered Office: 32 Cornhill, London, EC3V 3SG. Company No. 09827091


About ATFX A global award-winning forex broker, ATFX was established with the aim of providing a robust online trading platform for retail traders interested in trading, forex, cryptocurrency, precious metals and energy CFDs and. Today, the company, headed by an elite management team, has a global presence and offers a wide range of trading products. To ensure a seamless trading experience, the company offers MetaTrader 4, the most popular trading platform in the world, while connecting MT4 with the top liquidity providers with the latest bridging technologies. Due to its client-focus, ATFX also offers free access to market research, courses for all levels of trading, from novices to advanced levels, 24/5 live help and customer support, and highest level of protection for traders. Awards The outstanding performance of ATFX in our services have gained recognition from the market. During the year under review, the brand achieved over 20 international awards in 2018, included FX Broker of the Year, UK, Fastest Growing Forex Broker, Europe and Best Trader Education Service Provider. It regarding service, trading instruments, and the development in recognition of its commitments to excellent service to traders in corporate governance. Staffs are ATFX’s most valuable asset With close to 400 employees in offices around the globe, it aims to establish a strong footprint. ATFX now has websites in multiple languages tailored to each of the regions it serves and aims to provide the best-in-class products and services. From its user-friendly online trading platform to its multi-lingual customer support, offered by skilled and experienced professionals, ATFX takes pride in providing a safe and easy trading environment along with prompt help in the language that local traders (e.g. Europe, China, Southeast Asia …) are most comfortable in. Investors Education Following nearly 500 seminars that were successfully held during the last 12 months. ATFX has continued its principled commitment of educating its investors by conducting a series of seminars across the world, which are free and educate its participants about various trading techniques and helps learn the basics of risk management. It looks to provide a holistic service which includes the trading platform, along with a team of skilled and experienced professionals, allowing clients to gain access to comprehensive trading services. Website:www. Hotline: 0080 112 7901 [email protected] [email protected] Legal: ATFX is a trading name of AT Global Markets Limited (ATGM, registration number 24226 IBC 2017). ATGM is an International Business Company in Saint Vincent and the Grenadines. Registered address is : the Financial Services Centre, Stoney Ground, Kingstown, St.Vincent& the Grenadines.