The USD is modestly firmer but Treasury Secretary Bessent’s announcement of sanctions targeting Iran seems to have underwhelmed the markets.
Bessent is promising action will be taken against countries and entities doing business with Iran, though who and when is uncertain. Trump is said to be contacting relevant world leaders, though he has also found the time to announce fresh tariffs on Canada, namely 50% on auto imports, though not due to start until January 1 2027. We could see some more concrete announcements on the measures against Iran soon though for now the administration’s bark seems fiercer than the bite.