- Iran is now in, “BIG trouble – Trump said on Friday.
- Risk-off markets to kick in on scalation between UK and Iran.
Iran’s IRGC officially announced it has captured a British tanker in the Persian Gulf, 23 crew members on board last week which weighed on risk sentiment but had little effect on opening markets on Monday, so far.
Oil prices supported again on Iran noise
More escalation should equate to more upside in risk-off assets and potentially support the price of oil which has held off a run from 11th July high to a fresh low of $54.73 last week. Technical levels broke while Zarif has talked up negotiating. However, the two parties remain far off any agreement and Trump said last week that Iran is now in, “BIG trouble,” following the latest developments.
This was the second attempt to seize a UK vessel by Iran, the first one failed last week and could be in response to Gibraltar seizure of Iran tank. just otday, an audio recording surfaced of British and Iranian naval authorities radioing instructions to a UK-flagged oil tanker just moments before it was seized in the Strait of Hormuz, amid a mounting diplomatic spat between the two countries.
Radio exchange between Iranian vessel and British Royal Navy frigate
In the radio exchange, what is believed to be an Iranian vessel can be heard telling a British Royal Navy frigate that it wants to inspect the Stena Impero for security reasons, and orders it to “alter its course.” The British side quickly reacted by warning that, under international law, the vessel’s passage “must not be impaired.”
CNN reported today that “the possibility of sanctions has been floated in British media, suggesting that the incident could become a much broader clash between the two countries. The UK continues to maintain its priority is to de-escalate the situation.”
Iran’s ambassador to London, Hamid Baeidinejad, has urged the UK government to contain political forces seeking to turn the dispute into something larger.
“UK government should contain those domestic political forces who want to escalate existing tension between Iran and the UK well beyond the issue of ships,” Baeidinejad said on Twitter Sunday. “This is quite dangerous and unwise at a sensitive time in the region.”
The UK has convened two emergency meetings of national security officials to discuss its response, while also consulting other countries. It has warned ships connected to the UK shipping industry to “stay out of the area” in the interim.
Financial Times – Iran-backed terrorist cells could be deployed to launch attacks in the UK
Meanwhile adding more fuel to the fire, Iran-backed terrorist cells could be deployed to launch attacks in the UK if the crisis between London and Tehran deepens, intelligence sources have warned, the Finacial Times reports.
“Among senior intelligence officers, Iran ranks behind only Russia and China as the nation-state posing the greatest threat to Britain’s national security and the seizure of the UK-flagged oil tanker Stena Impero will have intensified concerns in MI5 and MI6.
Intelligence agencies believe Iran has organised and funded sleeper terror cells across Europe including the UK and could greenlight attacks in response to a conflict in the Gulf.
The cells are operated by radicals linked to Hizbollah, the Lebanese militant group. Counter-terror police…”
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