Bloomberg: Trump’s Iran offensive sows division in Europe

Trump vs. Starmer, Merz, and Sanchez
Pic.: RT

As the conflict in the Middle East intensifies, cracks of division are continuing to open up between EU member states about the legality of the US-Israeli strikes on Iran, Bloomberg notes.

Spain — which previously drew Donald Trump’s ire over its NATO spending pledges — bluntly accused the US and Israel of violating international law.

Merz has broadly backed the US-Israeli attacks, commenting that “we do not lecture our partners on military strikes against Iran.”

The conservative leader’s view was echoed by NATO Secretary General Mark Rutte, who said in North Macedonia that there is “widespread support” in Europe for the military campaign against Tehran.

Europe is meanwhile grappling with fallout from the Middle East conflict on a number of fronts.

Oil prices jumped and natural gas surged as much as 34% amid uncertainty over how long exports will be halted from the world’s largest LNG export plant in Qatar.

According to our colleagues at Bloomberg Economics, a prolonged war that keeps oil and gas prices elevated could put pressure on government coffers as countries spend more to shield voters from rising costs.

Stocks tumbled and the European bond selloff deepened, amid signs from Washington that the conflict could last longer than expected.

An unexpected increase in euro-area inflation last month added to jitters, with analysts increasing their bets on a possible rate hike this year by the European Central Bank.

The next four weeks will determine whether Europe’s economy is facing a fresh crisis or simply a speed bump in its recovery due to the US-Israeli strikes on Iran. A lengthier campaign risks sabotaging the euro zone’s fledgling revival while reawakening inflationary forces that the ECB has fought hard to contain.

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