Iran's IRGC says a few minutes ago it destroyed a Hermes 900 drone over Fars, warns any US or Israeli airspace violations will be treated as ceasefire breaches and met with a decisive response

Iran's IRGC has escalated tensions by downing a drone and issuing a warning against US or Israeli air violations, signaling a significant geopolitical risk in the region. This could provoke reactions in safe-haven assets like gold and the yen, and potentially disrupt energy markets, especially if it signals an increase in military assertiveness. Traders should be vigilant about how this affects risk sentiment and currency volatility, particularly the USD and EUR in relation to regional turmoil.