According to Reuters, joint operations conducted by Iran and Syria will be undertaken in coordination with aerial assaults from Russia against terrorist groups. According to the agency’s sources, Iran’s joining of the coalition has already seen troops on the ground in Syria in preparation to combat IS forces.
This situation was always likely to happen, since Iran has always been a staunch supporter of Assad and without the Iranian’s help, it’s unlikely Assad would still be in power. Simultaneously, Russia has stated that it will not take place in ground operations, instead only offering aerial support. This such aerial support has come under criticism, notably from western media sources and the Russian and French presidents are due to meet this evening with the strikes top of Hollande’s agenda.
Iran’s participation, even though it is an oil powerhouse, is unlikely to have an effect on oil prices. However, a reduction in exports conducted by IS could see a fall in quotes, as well as a resumption of fighting in territories where extraction fields are located. News of Iran’s effective entrance into battle has so far had no effect on financial markets; however, it does say something about a rise in military-political tensions.
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Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial markets. Alpari bears no responsibility whatsoever for any possible losses (or other forms of damage), whether direct or indirect, which may occur in case of using material published in the review.
Director of Alpari's analytical department
## ojimadu position
Senior Alpari analyst
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