Trump's strikes on Iran could upend delicate plans for NATO summit deal on defense spending
On Tuesday, two major diplomatic happenings will get underway: the start of a NATO summit in the Netherlands, which President Donald Trump is expected to attend, and the reported beginning of a ceasefire ending the hostilities between Israel and Iran.
The president's decision to unilaterally intervene in the latter could drastically change the former, European officials and commentators suggest.
'Of course, the news about Iran is at this moment, grabbing all the headlines,' NATO Secretary General Mark Rutte told reporters on Monday.
NATO leaders had hoped the two-day summit would be short, sweet, and concrete, producing a commitment from the 32 member nations to spend five percent of their GDP on defense, a figure high enough to reverse what Trump sees as decades of Europe freeloading on American defense largesse, reenergizing US interest in the transatlantic alliance after Trump once suggested the US might do its 'own thing' if its allies didn't invest more.
Planners for the event reportedly sought to appeal to Trump by throwing a lavish dinner at the Dutch king's palace and tiptoeing around the role of Ukraine's Volodymyr Zelensky.
As the war between Israel and Iran intensified, Trump seemed to be charting a different course from his allies on a number of issues.
The US operation to launch strikes on multiple Iranian facilities was underway on Friday even as European diplomats attempted to negotiate with Tehran in Geneva over the war and Iran's supplying of drones to Russia.
The 15-ton US bunker buster bombs that hit Iran's nuclear site at Fordow were another reminder of the vast distance on the Iran issue between Europe and the US, which pulled out of the Iran nuclear deal during Trump's first term.
The same day as Europe was attempting in vain to stall further hostilities with Iran, Trump suggested the US might not need to hit the five percent defense spending target.
'I don't think we should, but I think they should,' Trump said of European nations.
The stance, after months of American tariffs on European nations and quickly eroding support for Ukraine, left some European observers alarmed over what Trump may do if he attends the summit.
'Our American ally has became so elusive and hostile that no one dares to imagine how this NATO summit will unfold,' columnist Sylvie Kauffmann wrote in the French newspaper Le Monde.
Trump is not the only wildcard at the summit.
Last week, Spanish Prime Minister Pedro Sánchez warned in a letter to Rutte that his country 'cannot commit to a specific spending target in terms of GDP.'
On Monday, Rutte fired back, insisting NATO members don't have the option for 'opt-out' provisions or 'side deals.'
'The fact is that Spain thinks they can achieve those targets on a percentage of 2.1 percent,' Rutte said. 'NATO is absolutely convinced Spain will have to spend 3.5%, to get there.'
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


CNBC
27 minutes ago
- CNBC
CCTV Script 24/06/25
Tensions in the Middle East have sent global markets on a roller coaster ride. Overnight, we saw a strong rebound in U.S. equities, while oil prices plunged more than 7%—marking the biggest single-day drop in nearly three years. The Dow Jones Industrial Average rose 0.89%, the S&P 500 gained 0.96%, and the Nasdaq Composite climbed 0.94%. In the energy markets, US WTI crude futures dropped $5.33, or 7.22%, to settle at $68.51 per barrel. Brent crude futures tumbled $5.53, or 7.18%, to close at $71.48 per barrel. This chart shows how oil prices have swung since the Israel-Iran conflict began. The closing prices of both major crude futures contracts have fallen sharply from recent highs over the past two weeks—by around 10%. Analysts say several factors are behind this market reaction. Chief among them is that Iran's retaliatory strike turned out to be more restrained than many had feared. Rather than targeting critical oil infrastructure, the Iranian attack focused on a U.S. base in Qatar. Charles Kupchan'It looks like the Iranians felt that they needed to respond. It's more of a symbolic reaction. And at this point, it doesn't look like what the Iranians are doing is saying, Hey, we're ready to up the ante." Analysts note that markets are particularly sensitive to the impact on global oil supplies. As long as energy infrastructure remains intact, investor sentiment tends to stabilize. Another reason for the overnight shift is that traders appear to be turning their focus back to oil market fundamentals. Donald Trump once again called on U.S. energy producers to boost output, and in recent months, OPEC+ has raised its production targets multiple times. Many in the market now expect that global oil supply will outpace demand in the second half of this year. Earlier, there were widespread concerns that Iran might attempt to blockade the Strait of Hormuz. But falling oil prices suggest that traders are now assigning a lower probability to that scenario. Still, some experts warn against complacency. Matt Gertken'It's getting ahead of ourselves. It's not entirely off the table. Closing the Strait of Hormuz was always something that would only happen if the Iranians were convinced that the regime was absolutely going down, and they had no other choice, but that could still happen if we had a series of bad events and in a downward spiral." Michael O'Hanlon'As we learn from history, are not so easily controlled. And there are still multiple additional question marks about Iran's next moves, including whether it enters into negotiations on its nuclear program. And I'm doubtful about that."


Bloomberg
30 minutes ago
- Bloomberg
NATO Cash Bonanza Risks Becoming Europe's Lost Chance for Growth
Europe's plans to unleash trillions of euros in new defense spending will be a huge missed opportunity unless the region can work out how to raise productivity in the process. Any economic benefits beyond bolstering its own military capacity are likely to be lost if countries don't change the way they invest in their armed forces, and develop and produce weapons. That's what calculations by Bloomberg Economics suggest, pointing to only a fleeting growth impact that peters out within three years.

31 minutes ago
Trump says damage to Iran's nuclear sites is 'far below ground level'
The United States struck three nuclear sites in Iran on Saturday, President Donald Trump announced. B-2 bombers dropped a number of Massive Ordnance Penetrator bombs -- known as "bunker busters" -- during the U.S. mission over Iran, a U.S. official confirmed. A number of Tomahawk cruise missiles were also fired at targets inside Iran from a U.S. Navy submarine, the official confirmed. Following the strikes, Trump addressed the nation, calling it a "spectacular military success."