White House on Iran, says Trump's first option is always diplomacy but willing to use lethal force when and if necessary

White House on Iran, says Trump's first option is always diplomacy but willing to use lethal force when and if necessary.

The White House's statement emphasizing diplomacy as the primary approach toward Iran, while also highlighting a readiness to use lethal force if needed, suggests a continuation of heightened tensions in the region. This position may increase volatility in energy markets, particularly oil prices, and could drive safe-haven flows into currencies like the USD and JPY, impacting forex pairs. Overall, market participants should consider the potential for an escalation in geopolitical risk and its implications for risk assets and commodities.