Key Takeaways
- EU capitals are considering imposing €93 billion in tariffs or market restrictions on US firms in response to President Trump's threats over Greenland, causing the Euro to fall by 0.14% against the USD.
- A significant deal has been reached between the Syrian government and the Syrian Democratic Forces (SDF), integrating the SDF into the Ministry of Defense and transferring all oil field rights to the Syrian government.
- Iran has partially restored access to some online services, including Google, nearly 10 days after a nationwide shutdown during protests, though connectivity remains heavily restricted.
- Diplomatic efforts are ongoing regarding Greenland, with Denmark's Foreign Minister pursuing a diplomatic track with the US, despite President Trump's continued demands for ownership.
European Union capitals are reportedly weighing €93 billion in tariffs or market restrictions against US firms, a direct response to President Trump's threats over Greenland. This escalating trade tension has already impacted currency markets, with the Euro falling 0.14% in early Asian trading against the US Dollar (USD) following Trump's tariff threats. Earlier, the Euro had fallen 0.1% against the USD.
Denmark's Foreign Minister has urged President Trump to abandon the idea of owning Greenland, emphasizing strong EU support and a commitment to a diplomatic resolution. An agreement on a diplomatic track for Greenland was reconfirmed with the US Vice President after a White House press conference. NATO's Rutte also confirmed continued work on Greenland and Arctic security after discussions with Trump, with plans to meet in Davos. However, European leaders have warned that Trump's tariff threats "risk a dangerous downward spiral" in transatlantic relations.
In the Middle East, a pivotal agreement has been signed between the Syrian government and Kurdish Syrian Democratic Forces (SDF). This deal merges all SDF forces into the Syrian Ministry of Defense and transfers all oil field rights to the Syrian government. It also allows state institutions to enter eastern and northeastern governorates. US Envoy Tom Barrack described this ceasefire deal as a "pivotal inflection point." Syrian President confirmed that all lingering issues with the SDF will be resolved.
Meanwhile, internet monitors report that Iran has partially restored access to some online services, including Google, nearly 10 days after a nationwide shutdown during protests. Despite this, connectivity remains heavily restricted and far from normal, indicating the clampdown is largely still in place. Amidst the unrest, Iran's President Pezeshkian issued strong warnings, stating that any military aggression would be met with a "harsh and regrettable response" and that any attack on the Supreme Leader would trigger "all-out war."
In other developments, India has been invited by US President Donald Trump to be part of the Gaza Peace Board. The US is also reportedly taking steps to increase law enforcement agents and potentially send military personnel to Minneapolis, where immigration agents have clashed with protesting residents.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.