China signals possible retaliation against the U.S. over Iran sanctions

China's warning of potential retaliation over US Iran-related sanctions raises geopolitical and trade-policy risk, which can tighten global financial conditions and increase uncertainty around energy flows and cross-border payments. The headline is typically risk-off for broader markets, supporting demand for defensive hedges while increasing volatility in rates, FX, and commodities. Near-term focus shifts to diplomatic signaling and any concrete policy steps.