Alliance unity faces its toughest test in years as Washington’s patience with Tehran and its allies runs thin.
NATO leaders gathered in Ankara on Wednesday, hoping to pull Donald Trump back into the fold, just as fresh US strikes on Iran threatened to unravel an already shaky ceasefire.
Key Details
Trump arrived in the Turkish capital, venting frustration at European allies, hinting he’d have skipped the summit entirely if not for his rapport with host President Erdogan. Hours later, the US struck Iran again and pulled Tehran’s oil-export license following attacks on three tankers.
NATO chief Mark Rutte called the strikes “absolutely necessary” and brushed off Trump’s grievances as isolated. Meanwhile, NATO members rolled out $50 billion in new arms deals – a show of the defense spending Trump has long demanded. Trump also renewed his push to claim Greenland from Denmark, prompting a firm rebuke from Danish PM Mette Frederiksen.
Market Reaction
Geopolitical tension around Iran typically pressures oil prices higher and drives safe-haven flows into gold and the dollar, while risk assets like equities and higher-beta currencies often wobble on escalation headlines.
Why It Matters
For traders, this is a volatility cocktail: a fraying ceasefire, a US President openly clashing with allies, and a semi-frozen dispute over Greenland all landing at once. Any of these threads could move oil, gold, or the dollar sharply depending on how Wednesday’s summit declaration lands.
Watch for NATO’s final summit statement and any Iranian response to the oil license revocation; both could set the tone for markets heading into the weekend.
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Source: Reuters
