Iranian Speaker of Parliament’s advisor, on US President Trump's post on May 5th about pausing Project Freedom, says "Any reasonable person understands that at 5 a.m., in the middle of the night in Islamabad, no diplomatic event had taken place"

The remarks from the Iranian Speaker's advisor suggest a denial of U.S. claims regarding a diplomatic event and highlight ongoing tensions related to the Strait of Hormuz. This rhetoric may exacerbate geopolitical risks, particularly in energy markets, as any military escalation in the region could impact oil supply and drive commodities prices higher. Traders should be alert to any related moves in energy asset prices and currency fluctuations, especially in the USD and JPY.