Politico reports climate and artificial intelligence will be focal points in European Commission President Von der Leyen's State of the Union address.

Mehr news agency says Trump’s tactic of issuing maximal threats and then retreating has failed, eroding US credibility. It cites two strategic errors: misreading fundamental differences between Iranians and other regional populations, and persisting with measures that, when met by Iranian identity-based resistance, strengthen national resolve. Western media have warned that the new regional reality is Iran exercising permanent or semi-permanent control over the Strait of Hormuz, a reality regional states have accepted. Mehr says Washington must acknowledge that unless it recognizes Iranian sovereignty over the Strait and ends what it calls a provocative US military presence, peace and stability in the Gulf are impossible.

USD/JPY rose 0.3% to 159.86, the highest level since July 31.