Iran’s President Pezeshkian urges end to war as US pressure looms – Bloomberg

Iranian President Masoud Pezeshkian called for an end to the ongoing war, stating that it would be more advantageous to do so while the country possesses power, dignity, and global recognition of their victory, according to Bloomberg. Despite his position as the top elected leader, Pezeshkian's influence is confined to domestic economic matters.

The conflict in the Middle East appears unlikely to conclude in the near future, as US Treasury Secretary Scott Bessent is anticipated to intensify economic pressure on Iran. Certain Iranian officials, associated with the Islamic Revolutionary Guard Corps (IRGC), believe Iran is winning the war and advocate for its continuation.

Following Pezeshkian's comments, oil prices initially declined but quickly rebounded. "Risk-on" and "risk-off" are two commonly used terms in finance that describe the tolerance level of investors for risk during a given period. In a "risk-on" market, there is optimism about the future, leading to increased willingness to invest in risky assets.

Conversely, in a "risk-off" market, investors become more cautious, opting for safer, less volatile assets. A "risk-on" market typically sees stock markets rise, with most commodities, except gold, also gaining value. Additionally, the currencies of nations that export commodities strengthen due to heightened demand, and cryptocurrencies often rise as well.

In contrast, during a "risk-off" market, bonds typically increase in value, particularly major government bonds, while gold and safe-haven currencies such as the Japanese Yen, Swiss Franc, and US Dollar also benefit. In these markets, the Australian Dollar, Canadian Dollar, New Zealand Dollar, and minor currencies like the Ruble and South African Rand tend to rise, as their economies are heavily reliant on commodity exports.

Conversely, during a "risk-off" market, the US Dollar, Japanese Yen, and Swiss Franc generally strengthen. The US Dollar is strengthened due to its role as the world's reserve currency and increased demand for US government debt as a safe investment. The Yen benefits from higher demand for Japanese government bonds, as a significant portion is held domestically.

The Swiss Franc is supported by strict banking laws that offer enhanced capital protection. Bitcoin surged above $77,000, while other altcoins like Ethereum and Ripple mirrored its positive trend, trading near $2,400 and $1.35, respectively. The US Treasury moved off its own schedule, announcing a significant doubling of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors.

The maximum for these operations increased from $2 billion to at least $4 billion, effective from September 9 and running until November 4.