The lookahead: What next after U.S. strikes on Iran and Europe's 5% defense problem
After a week of global market jitters, the reaction to U.S. strikes on Iranian nuclear facilities will be front and center over the coming days. Meanwhile, a trio of heavyweight events could also shape the economic and geopolitical mood. From NATO tensions in The Hague to trade talks in Tianjin and industrial optimism in Berlin — investors will be watching closely.
Addressing the nation on Saturday evening, U.S. President Donald Trump said strikes on three of Iran's nuclear sites were a "spectacular military success" that "completely obliterated" the country's major enrichment facilities.
The strikes, which mark the first time the U.S. has conducted a direct military attack on Iran, mark a dramatic escalation in geopolitical tensions. Trump's claim about the result of the operation could not be independently confirmed.
Iran Foreign Minister Abbas Araghchi slammed the U.S. strikes, describing them as "outrageous" and saying the country "reserves all options to defend its sovereignty, interest, and people." Global investors will be scrambling to assess the fallout.
NATO meetings with Trump in attendance have a history of being dramatic. Back in 2017, the White House leader consistently questioned America's commitment to the alliance, and accused other members of owing "massive amounts of money" to the overall share of defense spending.
Fast forward to 2025 and the next NATO Leaders Summit with Trump is set to take place in The Hague, the Netherlands on Wednesday. Some problems are familiar – while defense spending has increased dramatically across Europe, countries like Spain risk derailing talks by calling the 5% of GDP target "unreasonable." In addition, the war in Ukraine rages on. Meanwhile other problems are new – hostilities are rising between Israel and Iran, alongside other neighbors in the Middle East, are testing international relations to the limit.
U.S. Ambassador to NATO Matthew Whittaker, told CNBC's "Squawk Box Europe" that the region should not expect a free ride from the U.S. on defense spending, as "the 5% target is not a negotiating tactic."
On the other side of the world, the Chinese city of Tianjin plays host to the World Economic Forum's Meeting of New Champions running from Tuesday to Thursday, also known as the Summer Davos. Technology dominates the agenda at a tricky time for relations between China and the West, as trade negotiations with the U.S. are still on-going.
Trump may have bought more time for TikTok, extending the deadline for China's ByteDance to divest the social media platform's U.S. business to September, but the latest round of trade talks in London led to a vague stand-off between the two superpowers, with no official readout. Speaking to CNBC right after those negotiations, U.S .Commerce Secretary Howard Lutnick was asked if current tariffs on China would not shift again, to which he replied, "you can definitely say that."
But this may do little to ease the conversations between Chinese officials and corporates in Tianjin, and the international delegates in attendance, who will be looking for more certainty from both the White House and Beijing.
Closer to home, it's the Day of Industry conference in Germany on Monday and Tuesday. This annual meeting in Berlin highlights German economic policy and global trade strategies. It could be a good time for the new government to be touting Europe's so-called Engine of Growth, with four economic institutes raising their 2025 and 2026 GDP growth forecasts for Europe's largest economy.
During a recent trip to Washington DC, Chancellor Friedrich Merz dodged the ire that other world leaders have faced in the Oval Office, with Trump's focus mostly dominated by his public spat with Elon Musk. But it's not all clear roads ahead for Germany, as the country's auto industry body reports that domestic auto-makers have shouldered around 500 million euros ($576.1 million) in costs associated with Trump's import tariffs.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Black America Web
21 minutes ago
- Black America Web
President Donald Trump Orders Bombing Of 3 Iran Nuclear Sites, Democrats Frozen Out From Intel
Source: HAYI / Getty After initially stating to mull the decision for a time, President Donald Trump ordered the bombing of three nuclear sites in Iran on Saturday (June 21), which has escalated the conflict to unprecedented levels. Top Democratic Party officials say that they were not briefed on President Trump's actions, and a national address from the former business mogul claimed a total annihilation of Iran's nuclear weapons production capabilities. As seen in an NBC News report, President Trump boasted of the bombing of three sites in Iran, Fordo, Natanz, and Isfahan, which the administration framed as the epicenter of Iran's nuclear weapons production. This comes as the two countries are locked in a long-distance skirmish that has left over 400 dead in Iran and over 24 dead in Israel. 'We have completed our very successful attack on the three Nuclear sites in Iran, including Fordow, Natanz, and Esfahan,' Trump wrote on Truth Social shortly after the attack. The move garnered praise from several GOP officials, including Speaker Mike Johnson, who stated that Congress would have taken too long to give its approval to Trump. Democratic Party Sen. John Fetterman praised Trump's actions, writing on X, 'Iran is the world's leading sponsor of terrorism and cannot have nuclear capabilities. I'm grateful for and salute the finest military in the world.' Fetterman's stance differs from those of his party, many of whom said that they were left out of briefing talks ahead of the strikes. Rep. Thomas Massie, a Republican congressman out of Kentucky, called Trump's actions 'unconstitutional' via social media. Sen. Tim Kaine of Virginia wrote on X of the bombing, 'The American public is overwhelmingly opposed to the U.S. waging war on Iran. And the Israeli Foreign Minister admitted yesterday that Israeli bombing had set the Iranian nuclear program back 'at least 2 or 3 years'. So what made Trump recklessly decide to rush and bomb today? Horrible judgment. I will push for all Senators to vote on whether they are for this third idiotic Middle East war.' House Minority Leader Rep. Hakeem Jeffries of New York shared in a statement, 'President Trump misled the country about his intentions, failed to seek congressional authorization for the use of military force and risks American entanglement in a potentially disastrous war in the Middle East.' United Nations Secretary-General António Guterres also took to X to give a statement regarding the strikes: I am gravely alarmed by the use of force by the United States against Iran today. This is a dangerous escalation in a region already on the edge – and a direct threat to international peace and security. There is a growing risk that this conflict could rapidly get out of control – with catastrophic consequences for civilians, the region, and the world. I call on Member States to de-escalate and to uphold their obligations under the @UN Charter and other rules of international law. At this perilous hour, it is critical to avoid a spiral of chaos. Source: Pool / Getty Late Saturday night, Trump was flanked by Vice President JD Vance, Defense Secretary Jim Hegseth, and State Secretary Marco Rubio, praising the efforts of the military strike. 'I want to thank the Israeli military for the wonderful job they've done, and most importantly, I want to congratulate the great American patriots who flew those magnificent machines tonight and all of the United States military on an operation the likes of which the world has not seen in many, many decades,' President Trump said. On X, the reaction to the Iran bombing and the fear of retaliation cast gloom across the social media network. We've got reactions below. — Photo: Getty President Donald Trump Orders Bombing Of 3 Iran Nuclear Sites, Democrats Frozen Out From Intel was originally published on Black America Web Featured Video CLOSE
Yahoo
22 minutes ago
- Yahoo
British Airways flights to Doha and Dubai cancelled after US strikes Iran
British Airways has cancelled flights to Dubai and Doha after Donald Trump ordered a US attack on Iran's nuclear sites. It comes after a British Airways (BA) flight from London Heathrow to Dubai was diverted to Zurich on Saturday night (June 21). The BA109 flight departed from the UK at 9.53pm on Saturday and reached Saudi Arabia before the Boeing 787 Dreamliner changed its course, landing in Switzerland, according to flight-tracking website Flightradar24. All of the airline's flights to Dubai and Doha that were scheduled to depart from Heathrow on Sunday have been cancelled, including return flights, the company said. Dubai: 1,000-plus British Airways passengers waiting in the UAE to be flown home after BA cancelled 4 flights from Heathrow to DXB. 1 BA plane on Saturday reached Saudi Arabia before turning around, but had to divert to Zurich. Emirates operating — Simon Calder (@SimonCalder) June 22, 2025 Israel announced on Sunday (June 22) that it had closed its airspace to both inbound and outbound flights in the wake of the US attacks. The US struck three nuclear test sites in Iran overnight, prompting Tehran to launch a retaliatory ballistic missile barrage against Israel. Recommended reading: How does parking work at Heathrow Airport - All to know Can you still use a red passport for travelling in 2025? Furious Ryanair customer abandons holiday over 'ridiculous' £55 charge In a statement, British Airways said: 'As a result of recent events, we have adjusted our flight schedule to ensure the safety of our customers and crew, which is always our top priority. 'We are contacting our customers to advise them of their options while we work through this developing situation.' BA is offering a flexible booking policy for customers already booked onto flights to Dubai and Doha between Sunday and Tuesday who wish to change their dates of travel.
The Hill
22 minutes ago
- The Hill
Ex-ambassador to Russia: Putin, Xi will celebrate Trump's ‘preemptive war' in Iran
Former U.S. Ambassador to Russia Michael McFaul warned on Saturday of how U.S. strikes on Iran could influence U.S. adversaries around the world. In an interview on MSNBC, McFaul said Russian President Vladimir Putin and Chinese President Xi Jinping would be glad to see the U.S. engaging in 'preemptive' strikes. 'I think we've really got to understand our other interests in the world that might be affected by this attack today. This is a preemptive war. The world does not support preemptive wars. We learned that in 2003,' McFaul said, referring to the U.S. invasion of Iraq, which was launched based on the theory that Saddam Hussein's regime had weapons of mass destruction and threatened America. 'Putin will be celebrating this because he did his own preemptive war in Ukraine and now it's like, well, this is just what great powers do. Maybe Xi Jinping is going to think the same. He's going to say, 'Well, if they can do it here, we can do it in Taiwan,'' McFaul added. Trump announced on Saturday evening that the U.S. had bombed three Iranian nuclear sites and said, 'NOW IS THE TIME FOR PEACE!' McFaul, in the interview, said he wishes the president 'well' in his aim to bring about peace, saying that outcome is possible but not likely. 'I hope he can bring about an agreement as soon as possible. It's happened before — capitulation after an attack like this — so it could happen, but it's not what I'm predicting,' McFaul said. 'The idea that they will now sit down and negotiate with us some long-term deal in the immediate run, I think, is highly unlikely,' he added. McFaul said it's 'good news' that the U.S. strikes, according to Trump, 'totally obliterated' the Iranian nuclear facilities, saying, 'I applaud that.' 'That's good news for today, but we need to think about what are the first, second, third and fourth order consequences after this,' McFaul added. 'Most immediately, they are going to retaliate, and I hope we are prepared to prevent that and prevail against our forces in the region.'
