IRAN'S REZAEI: TEHRAN WILL TARGET US MILITARY BASES IN EUROPEAN COUNTRIES IF US AIRCRAFT TAKE OFF FROM THEM TO STRIKE IRAN

Iranian official Rezaei stated that Tehran would target U.S. military bases located in European countries if American aircraft use those facilities to launch strikes against Iran, according to the headline attributed to WB. The transmission mechanism runs through geopolitical risk premia and risk appetite: a explicit threat extending conflict to European soil raises the probability of wider escalation, which typically lifts demand for safe-haven assets and pushes investors toward defensive positioning. Europe-exposed equities, particularly defense contractors, energy importers sensitive to Middle Eastern supply disruption, and airlines facing airspace closures or higher fuel costs, face the most direct repricing. Iran-linked instruments and regional sovereign debt would reflect heightened sanctions and conflict risk, while oil futures could carry a supply-disruption premium if the threat is perceived as credible. Traders should watch for official U.S. or European government responses regarding base access and any Iranian follow-up statements, alongside Brent crude and gold price moves in the sessions immediately following the remarks.

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