ForexLive Asia-Pacific FX news wrap: Trump warns Iran, and then exits G7 a day early

• Oil prices up after reports of 3 ships on fire in Gulf of Oman near the strait of Hormuz
• Reports that three ships are on fire in the Gulf of Oman near the strait of Hormuz.
• MUFG BOJ Preview – Bank set to hold rates steady, may fine-tune bond tapering pace
• US Secretary of State Rubio is leaving the G7 early, heading back to DC
• Trump to leave G7 after resisting joint statement on Israel-Iran conflict
• PBOC sets USD/ CNY central rate at 7.1746 (vs. estimate at 7.1820)
• Japan fin min Kato says no plan for talks with Bessent at present
• White House denies the US is attacking Iran
• Japan’s finance minister Kato expresses concern about oil supply, prices
• Trump says its ‘very important’ that he heads back to DC early
• Singapore exports have fallen in May vs a rise that was expected
• U.S. official says no intention of initiating offensive operations against Iran
• Risk assets selling off on Trump National Security Council news … but wait!
• Chinese embassy in Israel advises Chinese citizens to leave Israel ASAP
• Fox reporting that Trump requests NSC be prepared in Situation Room
• France’s Macron says it good that Trump has left the G7 early
• Trump is leaving the G7 summit EARLY and will return to DC tonight.
• Trump’s ‘evacuate Tehran’ tweet is all about getting Iran to negotiate says White House
• New Zealand Food Price Index for May 2025 +0.5% m/m (prior +0.8%)
• Japan PM Ishiba says did not reach trade deal agreement with Trump
• “Carney and Trump commit to reaching trade deal within 30 days”
• Trump says everyone should immediately evacuate Tehran
• UBS forecasts gold to $3,500/oz
• US plans a 100K annual quota for UK auto imports at 10% tariff rate
• Trump expected to offer Iran ‘last-chance’ proposal (US and European sources)
• US is accelerating the deployment of additional aircraft carrier group to the Middle East
• Trump says on Iran that we will do something after leaving G7
• Trump says he signed document finalizing trade deal with the UK
• EV news (TSLA), US Senate Republicans plan to end the US$7500 tax credit
• Here’s the ‘red line’ that if Iran crosses will drag the US into the war
• Forexlive Americas FX news wrap: US dollar reverses losses as G7 begins
• US stock markets close with strong gains
• Trade ideas thread – Tuesday, 17 June, insightful charts, technical analysis, ideas

The first market-moving development overnight came via Truth Social, where former U.S. President Donald Trump warned: “Iran should have signed the ‘deal’ I told them to sign… IRAN CANNOT HAVE A NUCLEAR WEAPON… Everyone should immediately evacuate Tehran!”

• The post triggered a brief bout of risk aversion:

  • WTI crude rose from around $71 to $72.15

  • S&P 500 futures (ES Jun) slipped from 6031 to ~6021

  • Gold edged higher

A White House official told CNN the social media post reflected the urgency of the situation and the administration’s desire to push Iran back to the negotiating table as hostilities with Israel escalate.

Sentiment soured further as news broke that Trump would leave the G7 summit early to return to Washington, with the White House saying he needed to “attend to many important matters.” Risk assets extended losses on headlines that Trump had also instructed the National Security Council (NSC) to prepare in the White House Situation Room for h

Markets later retraced some of the moves after a U.S. official said there is no intention to launch offensive operations against Iran, and reports surfaced that Trump was, in fact, staying for the G7 dinner.

As the session progressed, unconfirmed reports emerged of three ships on fire in the Gulf of Oman, near the Strait of Hormuz. That sent Brent crude sharply higher, rising toward $75/bbl.

This article was written by Eamonn Sheridan at www.forexlive.com.