US Sec. of State Pompeo: The US is sanctioning 18 major Iranian banks

Early Friday morning in Asia, US Secretary of State Mike Pompeo tweeted the Trump administration’s decision to increase hardships for Iran’s financial sector. The diplomat mentioned restricting financial access of 18 banks from Tehran. The underlying reason cited is Iranian support for terrorist activities and nuclear extortion.

Market implications

Although the market’s risk-on conditions, mainly backed by hopes of further stimulus, fail to pay attention to the news, energy prices may gain additional support from the update. That said, WTI stood around $41.50 by the end of the US settlement. Energy traders may witness a further rise in the black gold’s price towards challenging the September month high of $41.75 on the news.