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The latest update from the Washington Post (WaPo) suggests the US Secretary of State Mike Pompeo’s failure to garner enough support to extend an arms embargo against Iran at the United Nations Security Council meeting. The news came out during the late-Tuesday in the US and suggests an increase in geopolitical tension amid China’s tussles with the US and India.

Key quotes

Secretary of State Mike Pompeo urged the United Nations Security Council on Tuesday to extend an arms embargo against Iran due to expire in four months, but he faced resistance from China, Russia and even European allies that share his concerns about Iran’s missile and nuclear activities.

In a virtual meeting of the Security Council, Pompeo labeled Iran ‘the world’s most heinous terrorist regime’ and warned it would develop and export weapons that would threaten the Middle East and European capitals.

He said lifting the ban on the trade of conventional weapons would turn Iran into a ‘rogue weapons dealer,’ supplying advanced weapons to groups like Hamas and Hezbollah and fueling conflicts in Venezuela, Syria and Afghanistan.

Pompeo was no longer listening to the debate when Iranian Foreign Minister Mohammad Javad Zarif appeared at the end. Zarif pointedly started and ended his remarks by quoting Mohammad Mossadegh, the elected Iranian prime minister who was overthrown in a 1953 CIA coup. Zarif said the expiration of the arms embargo was an integral part of the 2015 nuclear deal and demanded the United States compensate Iran for the damage its sanctions have inflicted on the economy.

Market implications

The news could offer additional strength to the WTI, currently attempting a break of $40.00, while also weighing on the risk-tone sentiment. However, no major market response could be found after the release as the S&P 500 Futures stays mildly positive around 3,090 by the press time.