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US Treasury's new Iran sanctions overshadowed by stealth QE via TGA-funded buybacks boosting liquidity.

Market News
25 Aug 2026, 18:59 WIB
Seeking Alpha
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Neutral
US Treasury's new Iran sanctions overshadowed by stealth QE via TGA-funded buybacks boosting liquidity.

The US Treasury expanded secondary sanctions on Iran, covering sectors like shipping, oil, crypto, and gold, but market reactions were muted with Brent crude prices falling and equities largely unchanged. Meanwhile, the Treasury plans to fund stock buybacks from the Treasury General Account (TGA), effectively injecting liquidity into the market in a form of stealth quantitative easing. This move supports long-duration assets and could benefit gold, Bitcoin, and commodities due to a weaker dollar and increased liquidity, though it carries risks if fiscal credibility weakens. Investors should watch how these dynamics evolve amid geopolitical tensions and market liquidity shifts.

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