Concerns have increased in the global markets, including the steel markets, regarding the possible outcome of the recent escalation of tensions between the US and Iran, after the Iranian missile attacks on US-led forces in Iraq. Ahead of an official American reaction to the attacks, market players were trying to assess the possible consequences.
One of the expectations was that the US could implement serious sanctions against Iran and the Iran-linked business community, which could hit the steel trade again. Others feared the US could answer with actual attacks on Iran, which would put further stress on the oil and gas sector and push up general commodity prices, SteelOrbis understands.
Overall, the expectation was that business with Iran may be put on hold for some time to avoid possible consequences. In the event of the milder scenario, sources expect some delays in semis shipments to Asian markets specifically until the whole picture gains clarity. In the event of the more serious scenario, trade and shipments from Iran will be halted, creating some deficit in semi-finished steel supplies again in the Far East.
Donald Trump eventually responded Wednesday morning in a press briefing, saying that Iran "appears to be standing down." There were no casualties in the missile attacks, and the military bases only suffered "minimal damage."
Trump said the US will "immediately impose additional punishing economic sanctions" against Iran, and demanded that the country "abandon its nuclear ambitions and end its support of terrorism."
Details about the new sanctions have not been released.