Trump Unveils Sweeping Economic Measures Against Iran
US President Trump announced a series of economic measures against Iran, which he described as the 'most crushing economic operation ever taken against any country.' He stated that countries or entities supporting Tehran will face 'tremendous economic consequences,' and warned that oil smuggling, swap lines, cash transfers, exchange houses, ship registries, and front companies must all be stopped immediately.
The US Treasury will unveil Iran sanctions this week, according to Trump. The President reiterated that the Strait of Hormuz is currently open with many vessels transiting. A recent CENTCOM campaign has degraded Iran's radar and maritime surveillance systems, allowing for the transportation of millions of barrels of oil each day through a newly established shipping corridor.
In other news, US stocks were mixed on Wednesday, with most major indices marginally higher, but the tech-heavy Nasdaq 100 underperforming. The main story was the US Treasury's announcement that it will increase, by at least double, the size of liquidity support buyback operations for longer-dated nominal coupon securities, from USD 2bln to at least USD 4bln.