US and Israel plan to attack Iran's energy infrastructure – CBS News
CBS News reported that the United States and Israel may engage in a large campaign against Iran, targeting Iran's energy infrastructure, said multiple sources.
The duration would be over the weekend ahead of next week's Asian open in the financial markets. The article mentions that US sources revealed that Israel has been notified and “are coordinating with the United States.” The US “president has yet to give the final go orders for the strikes, the sources said.”
Meanwhile, an Israeli official told CBS News, “Israel is unaware of a decision to restart full military operations, nor has been requested of Israel to join any military actions against Iran.[
The article read “The military strike plan came up during President Trump's cabinet meeting at Camp David on Friday, according to sources briefed later. Some White House aides who focus on politics were strongly opposed, one of the sources said.”
According to two sources, energy infrastructure includes power plants and refineries would be the main targets,
Risk sentiment FAQs
In the world of financial jargon the two widely used terms “risk-on” and “risk off'' refer to the level of risk that investors are willing to stomach during the period referenced. In a “risk-on” market, investors are optimistic about the future and more willing to buy risky assets. In a “risk-off” market investors start to ‘play it safe’ because they are worried about the future, and therefore buy less risky assets that are more certain of bringing a return, even if it is relatively modest.
Typically, during periods of “risk-on”, stock markets will rise, most commodities – except Gold – will also gain in value, since they benefit from a positive growth outlook. The currencies of nations that are heavy commodity exporters strengthen because of increased demand, and Cryptocurrencies rise. In a “risk-off” market, Bonds go up – especially major government Bonds – Gold shines, and safe-haven currencies such as the Japanese Yen, Swiss Franc and US Dollar all benefit.
The Australian Dollar (AUD), the Canadian Dollar (CAD), the New Zealand Dollar (NZD) and minor FX like the Ruble (RUB) and the South African Rand (ZAR), all tend to rise in markets that are “risk-on”. This is because the economies of these currencies are heavily reliant on commodity exports for growth, and commodities tend to rise in price during risk-on periods. This is because investors foresee greater demand for raw materials in the future due to heightened economic activity.
The major currencies that tend to rise during periods of “risk-off” are the US Dollar (USD), the Japanese Yen (JPY) and the Swiss Franc (CHF). The US Dollar, because it is the world’s reserve currency, and because in times of crisis investors buy US government debt, which is seen as safe because the largest economy in the world is unlikely to default. The Yen, from increased demand for Japanese government bonds, because a high proportion are held by domestic investors who are unlikely to dump them – even in a crisis. The Swiss Franc, because strict Swiss banking laws offer investors enhanced capital protection.
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