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The ‘E3’ group of countries comprised of France, Britain and Germany called on Iran to refrain from any violent action and urged Iran to go back to respecting arrangements laid out in the JCPOA 2015 nuclear deal with world powers, according to Reuters.

“We reaffirm our commitment to continuing the fight against Islamic State, which remains a priority. It is essential that we keep the coalition, in this regard. We call on the Iraqi authorities to continue to supply the necessary support to the coalition,” the E3 group said in a statement.

“We are ready to continue talks with all parties in order to contribute to de-escalating tensions and re-establishing stability in the region,” added the E3 group.

Key notes

  • E3 group of countries call on need to de-escalate situation in Iraq and Iran.
  • E3 group of countries call on Iran to refrain from any violent action and call on Iran to go back to respecting its arrangements as per the nuclear deal.
  • E3 group of countries (France, Germany, UK) say they reiterate their commitment towards sovereignty and security of Iraq.
  • E3 group of countries says it reaffirms its determination to fight Islamic State.
  • E3 group of countries says it calls on Iraq to continue to support the international coalition in fight against Islamic State.
  • E3 group of countries says it has grave concerns over negative role played by Iran in the region and in particular by the Quds force under Soleimani.
  • E3 group of countries says it is ready to pursue dialogue with all parties in order to de-escalate tensions and re-establish security in the region.
  • French president macron aims to have talks with Iranian President Rouhani in coming days – Macron’s office.

FX implications

  • Risk-off open as full markets return to the sounds of war drums
  • Chart of the week: Oil prices spiking and intent on 2019 highs