Trump threatens to destroy Iran power plants as reports emerge of downed U.S. F-35

A U.S. leader threatened military action against Tehran, saying the U.S. military will be hitting Tehran "extremely hard" for the next two to three weeks. The explicit threat materially raises short-term geopolitical risk in the Middle East, likely to lift oil-price risk premia and drive risk-off flows into safe-haven assets while increasing volatility for EM and regional defense-related equities.

Analysis

A U.S. leader threatened military action against Tehran, saying the U.S. military will be hitting Tehran "extremely hard" for the next two to three weeks. The explicit threat materially raises short-term geopolitical risk in the Middle East, likely to lift oil-price risk premia and drive risk-off flows into safe-haven assets while increasing volatility for EM and regional defense-related equities.