[Asia Economy Reporter Jeong Hyunjin] On the 6th (local time), the funeral of Qasem Soleimani, the powerful figure in the Iranian military and commander of the Quds Force of the Revolutionary Guards, took place amid escalating tensions of potential military conflict as the U.S. and Iran exchanged messages targeting each other. While global attention focused on the Middle East situation, reports emerged that U.S. troops stationed in Iraq might withdraw, but U.S. Secretary of Defense Mark Esper denied these claims, stating, "There are no plans to withdraw."
U.S. President Donald Trump and Iranian President Hassan Rouhani engaged in a war of words on Twitter that day. President Trump tweeted, "Iran will never have a nuclear weapon," countering Iran's declaration the previous day that it was effectively withdrawing from the nuclear agreement (JCPOA - Joint Comprehensive Plan of Action). President Rouhani also posted on Twitter, "Those who mention the number '52' should also remember the number '290' of flight IR655. Never threaten Iran." This was in response to Trump's warning to target 52 Iranian sites, matching the number of American hostages held in Iran 40 years ago, referencing the 290 people who died when the U.S. military shot down an Iranian passenger plane heading to Dubai in 1988.
With the possibility of Iranian retaliation raised, the U.S. military is reportedly preparing to deploy additional airborne and special forces to the Middle East, as well as strategic bombers. CNN cited an anonymous U.S. official reporting that the Department of Defense plans to dispatch six B-52 bombers to Diego Garcia Air Base in the Indian Ocean. These bombers could be deployed in operations against Iran if ordered.
The U.S.-Iran conflict appeared to reach a critical point when news of a U.S. withdrawal from Iraq surfaced. Major foreign media reported that William Seely, commander of the U.S. Marine Corps brigade and head of the U.S. Iraq Task Force, sent a letter to the commander of the Iraqi Joint Operations Command indicating that U.S. troops stationed in Iraq were preparing to relocate to other areas. However, Secretary Esper promptly denied this, saying, "No decision has been made to leave (Iraq), and no plans for withdrawal have been presented," ending the matter as a false alarm.
There are also assessments that room for negotiation between the U.S. and Iran remains. Iran has stated it will continue cooperation with the International Atomic Energy Agency (IAEA) as before, and Kellyanne Conway, senior advisor to the White House, said President Trump is confident about renegotiating the nuclear agreement with Iran.
Market sentiment was cautious. The sharply fallen stock market partially recovered. On the New York Stock Exchange that day, the Dow Jones Industrial Average closed at 28,703.38, up 0.24% (68.50 points) from the previous session. The S&P 500 and Nasdaq indices also closed up 0.35% and 0.56%, respectively. West Texas Intermediate (WTI) crude oil for February delivery, which had plunged significantly on the 3rd, rose only 0.35% that day. The rise in international gold prices was also halved compared to the previous day, increasing by 1.1% per ounce.
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