WASHINGTON (AP) — The United States and Iran’s tensions over the shoot-down of a massive U.S. drone has escalated more fear among global stock markets.

President Donald Trump says he abruptly called off the military strikes on Iran Thursday because the likely deaths of 150 Iranians would have been out of proportion to the shootdown of an unmanned American surveillance drone.

He is also indicating he still hopes for talks with Iranian leaders rather than any escalation of military conflict.

Trump says he is “in no hurry,” adding that increasingly severe sanctions meant to push Iran to the nuclear negotiating table are “biting” the Iranian economy.

Iran, though, is showing no public inclination to negotiate. It is unclear whether Trump, who says the U.S. military had been “cocked and loaded” to hit Iran, is considering new military options.

U.S. Treasury Secretary Steven Mnuchin says Iran’s financial sector will soon face penalties if it doesn’t work to stop evading international guidelines designed to combat money laundering.

Mnuchin says Iran has not taken steps to comply with the guidelines. As a result, he says, branches and subsidiaries of financial institutions based in Iran will be subjected to increased oversight.

The U.N. says Secretary-General Antonio Guterres’ message to the United States and Iran is to avoid anything that would escalate the current tense situation and “to have nerves of steel.”

U.N. spokesman Stephane Dujarric told reporters at U.N. headquarters Friday that “the secretary-general firmly believes in the need for dialogue between the parties involved as probably the best way to defuse tension and to avoid any escalation.”

Dujarric said the U.N. has been in contact with the parties at various levels and is passing the same message in public and it is in private, “which is to avoid any escalation.”

Dujarric announced that Guterres will be attending the G20 summit in Osaka, Japan, next week but said he didn’t know yet if the secretary-general would meet there with U.S. President Donald Trump.

Amid rising conflict between Iran-US, Indian navy has deployed two warships to the Gulf of Oman.

Indian navy spokesman says the ships Chennai and Sunayna have deployed to the Persian Gulf and Gulf of Oman to undertake maritime security operations, escort Indian merchant ships and “coordinate between stakeholders.”

Indian military aircraft are also conducting aerial surveillance in the area.

U.S. Secretary of State Mike Pompeo has reached out to foreign leaders to convince them that the apparent attacks on the key Mideast shipping route is a problem for the world at large. Iran is India’s third-largest source of imported oil. Pompeo is visiting India next Tuesday, ahead of G20 talks in Osaka, Japan.

Major Interntional Airlines have decided to re-route its flight path amid Iran-US conflict over downing of military drone RQ-4 Global Hawk in the strait of Hormuz by Iranian defence establishment.

British Airways will re-route flights away from the Strait of Hormuz after Iran shot down a US military drone.

The decision comes after the Federal Aviation Administration barred American-registered aircraft from flying over Iranian-administered airspace in the Persian Gulf and the Gulf of Oman.

BA joins Australia’s Qantas and Dutch carrier KLM in opting to change the routing of their planes to avoid tensions in the area.

BA says Friday that “our safety and security team are constantly liaising with authorities around the world as part of their comprehensive risk assessment into every route we operate.”

Iranian state television’s website has published images it says show debris from the U.S. military surveillance drone that Iran shot down the previous day.

An Iranian surface-to-air missile fired early Thursday brought down the RQ-4A Global Hawk, an unmanned aircraft with a wingspan larger than a Boeing 737 jetliner and costing over $100 million. The U.S. said it made plans for limited strikes on Iran in response, but then called them off.

The shootdown has further escalated tensions between Iran the U.S. as Tehran’s nuclear deal with world powers unravels. Iranian defence ministry claims, the military drone voilated airspace. The U.S. said the unmanned drone was in international airspace.

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Newsroom | theworldmail.co.uk
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