USD/JPY has fallen further on a report that the Naval Support activity in Bahrain has been placed on ‘high alert’ with dependants of service members being told to prepare for evacuation.
The logical jump here is that something could be happening with Iran.
The S&P 500 quickly drop by 30 points on the headlines and USD/JPY hit a session low of 144.33. Oil has been surging all day and is now at fresh session highs, up nearly $3 on the day.
The bases in Bahrain and Kuwait would be two of the closest US operations to Iran. Bahrain hosts the headquarters for US Naval Forces Central Command (NAVCENT) and the U.S. 5th Fleet. That includes approximately 8,300 US personnel and dependents. Kuwait hosts Camp Arifjan, which is a massive army installation that routinely hosts 10,000-plus troops and personnel along with Camp Buehring, which can also host 18,000 personnel along with two other bases.
Here is the report, which is a decent source but not exactly iron-clad.
Update: The Associated Press also confirms the report and adds that the State Dept is also preparing to order the departure of all nonessential personnel from Baghdad.
This article was written by Adam Button at www.forexlive.com.
