Chinese companies are continuing to supply drone factories in Iran and Russia with dual-use goods such as engines, computer chips, fibre optic cables and gyroscopes, despite the US sanctions, WSJ reports

This development suggests a potential escalation in the geopolitical landscape, particularly as Chinese support for drone manufacturing in Iran and Russia could exacerbate tensions with the U.S. The implications for energy markets and the forex space, particularly in USD/EUR positioning, are significant, as it may contribute to heightened volatility if sanctions intensify or if there are retaliatory measures by the U.S.