France, Germany and the United Kingdom are prepared to take “defensive action” against Iran after a series of missile and drone attacks in the Middle East. In a joint statement, the three countries say they will defend their own interests and those of allies in the Gulf region.
Tensions are rising rapidly as Iran has targeted several countries in retaliation for the US-Israeli attacks that began last Saturday. The threat is further setting the region on fire and causing a lot of panic among investors.
Europe puts its teeth into the Iran crisis
The leaders of France, Germany and the UK have called the Iranian attacks “reckless” and “disproportionate,” The Wall Street Journal reports. According to them, not only military targets were hit, but also countries that were not involved in the initial attacks by the United States and Israel.
“We will take steps to defend our interests and those of our allies in the region, including by enabling necessary and proportionate defensive actions to destroy Iran’s ability to launch missiles and drones at their source,” the joint statement said, also calling on Iran to “immediately cease” the attacks.
The three countries are working together with the United States and regional allies. On Saturday, the same leaders called on Iran to seek a “negotiated solution” and emphasized that they were not participating in the US and Israeli attacks.
Missile strikes in Iraq and Jordan
Iran carried out a “large-scale” attack on Sunday, the Revolutionary Guards said. Explosions were reported in Riyadh, Dubai, Abu Dhabi and Tel Aviv, among others. At least nine people were killed in the Israeli city of Beit Shemesh, according to emergency services.
A multinational military base near Arbil in northern Iraq and a German army camp in eastern Jordan were also hit. According to a German army spokesman, there were no casualties there.
Iranian President Masoud Pezeshkian called the death of Ayatollah Khamenei a “declaration of war on Muslims” and said Iran sees it as its “legitimate duty” to take revenge.
“We defend ourselves, whatever it takes, and we do not see any limits for ourselves to defend our people, to protect our people,” Foreign Minister Abbas Araghchi told ABC News.
Rising oil prices can cause major problems
Bitcoin (BTC) is still holding up reasonably well, but there is visible fear among investors. This is mainly due to the disruptions around the Strait of Hormuz, a crucial strait through which a third of global oil trade passes. During the conflict, energy transports there are largely at a standstill.
As a result, the oil price has already risen considerably and this will be reflected in inflation. According to experts, short disruptions of one to two weeks can still be absorbed. If the conflict lasts longer than three to four weeks, oil prices could rise sharply due to supply problems.
Then we will have to wait even longer for interest rate cuts and if things really get out of hand, there could even be talk about interest rate increases. That puts pressure on liquidity and is bad news for risky assets.
US President Donald Trump himself has said that the conflict with Iran could last four weeks. He also said bombings will continue until targets are reached. A diplomatic solution seems to be far away, because Iranian security chief Ali Larijani has contradicted Trump’s statements that Tehran wants to return to the table.
Source: https://newsbit.nl/markten-bezorgd-duitsland-frankrijk-en-vk-dreigen-met-defensieve-actie-tegen-iran/
