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Foreign ministry spokesman Baghaei said diplomatic dynamics are shifting and regional tensions are causing broad concern. He said Iran is closely monitoring developments in a firm, cautious manner, is prepared to respond to any possible eventuality, and will maintain and strengthen that state of readiness.

Citigroup analyst Jamie Searle says the ECB would prefer not to discuss France at its upcoming policy meeting but may find the topic unavoidable. The ECB may remind markets it has conditional backstop tools but is unlikely to encourage intervention in French markets. French bond volatility is expected to dominate Lagarde’s Thursday press conference after weeks of heavy selling as markets doubt the French government can narrow the budget deficit to 5% of GDP by 2027, particularly following recent violent protests.