{"id":64209,"date":"2026-07-04T06:08:14","date_gmt":"2026-07-04T10:08:14","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/middle-east-security-pact-and-eu-diplomatic-rift-shape-global-outlook\/64209\/"},"modified":"2026-07-04T06:08:14","modified_gmt":"2026-07-04T10:08:14","slug":"middle-east-security-pact-and-eu-diplomatic-rift-shape-global-outlook","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/middle-east-security-pact-and-eu-diplomatic-rift-shape-global-outlook\/64209\/","title":{"rendered":"Middle East Security Pact and EU Diplomatic Rift Shape Global Outlook"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>The UK and France have reached a landmark agreement with Oman<\/strong> to secure sovereign territorial waters in the <strong>Strait of Hormuz<\/strong>, a vital artery through which <strong>20% of the world&#39;s oil<\/strong> flows.<\/li>\n<li><strong>Iraqi President Nizar Amidi<\/strong> has launched a major diplomatic offensive, calling for the <strong>return of Arab diplomatic missions to Baghdad<\/strong> and seeking &quot;best strategic relations&quot; with <strong>Saudi Arabia<\/strong>.<\/li>\n<li><strong>A deepening &quot;turf war&quot; in Brussels<\/strong> sees the European External Action Service (EEAS), led by <strong>Kaja Kallas<\/strong>, facing potential dismantling or absorption by the <strong>European Commission<\/strong> under <strong>Ursula von der Leyen<\/strong>.<\/li>\n<li><strong>Iraq is prioritizing a political resolution<\/strong> for the <strong>PKK<\/strong> issue and utilizing security agreements to manage the <strong>Iranian opposition dossier<\/strong>, signaling a shift toward dialogue-based regional stability.<\/li>\n<li><strong>Global energy markets remain sensitive<\/strong> to the Hormuz security situation, as the UK and France stand ready to deploy a <strong>Multinational Military Mission<\/strong> if freedom of navigation is further threatened.<\/li>\n<\/ul>\n<h2>UK, France, and Oman Move to Secure Strait of Hormuz<\/h2>\n<p>The <strong>United Kingdom<\/strong> and <strong>France<\/strong> have formalized a security partnership with the <strong>Sultanate of Oman<\/strong> to restore and maintain safe transit through the <strong>Strait of Hormuz<\/strong>. This strategic waterway, critical to the global economy, has faced significant disruptions following recent regional conflicts. Under the agreement, the European powers will assist in ensuring Oman&#39;s <strong>sovereign territorial waters<\/strong> remain safe for international navigation.<\/p>\n<p>French President <strong>Emmanuel Macron<\/strong> and UK Prime Minister <strong>Keir Starmer<\/strong> emphasized that they are prepared to deploy a broader <strong>Multinational Military Mission<\/strong> to support freedom of navigation. France has already committed <strong>mine countermeasures assets<\/strong>, including two minehunters and two frigates, to the region. This move follows a period of heightened volatility where blockades led to a <strong>94% drop in traffic<\/strong> and a surge in global fuel prices.<\/p>\n<h2>Iraq Seeks Regional Reintegration and Strategic Alliances<\/h2>\n<p>In a series of high-level statements to <em>Al Arabiya<\/em>, Iraqi President <strong>Nizar Amidi<\/strong> called on <strong>Arab diplomatic missions<\/strong> to return to Baghdad, signaling a new era of stability. Amidi underscored Iraq&#39;s ambition to forge the &quot;best strategic relations&quot; with <strong>Saudi Arabia<\/strong>, moving away from years of friction. This diplomatic pivot is part of a broader effort by the new government under Prime Minister <strong>Ali al-Zaidi<\/strong> to recalibrate Iraq\u2019s role in the Middle East.<\/p>\n<p>Addressing long-standing security concerns, the President stressed that a <strong>political path<\/strong> is essential to resolving the <strong>PKK<\/strong> (Kurdistan Workers&#39; Party) issue. Furthermore, Iraq is leaning on existing <strong>security agreements<\/strong> with Tehran to address the <strong>Iranian opposition dossier<\/strong>, aiming to prevent Iraqi soil from being used as a staging ground for regional proxy conflicts. These efforts coincide with a planned visit by PM al-Zaidi to the <strong>White House<\/strong> in mid-July.<\/p>\n<h2>EU Diplomatic Service Under Siege in Brussels<\/h2>\n<p>Internal tensions within the <strong>European Union<\/strong> have reached a breaking point as a protracted &quot;turf war&quot; erupts between the <strong>European Commission<\/strong> and the <strong>European External Action Service (EEAS)<\/strong>. Reports indicate that the diplomatic service, led by High Representative <strong>Kaja Kallas<\/strong>, is losing ground to the executive branch headed by <strong>Ursula von der Leyen<\/strong>.<\/p>\n<p>A French-led proposal has surfaced, suggesting three paths for the EEAS: <strong>absorption into the Commission<\/strong>, moving it under the <strong>EU Council<\/strong>, or a limited strengthening of its current powers. Critics of the current structure describe the EEAS as &quot;dysfunctional&quot; and &quot;slow,&quot; while Kallas has defended the service&#39;s &quot;added value.&quot; This institutional friction comes at a critical time as the EU struggles to present a unified front on global crises, including the wars in <strong>Ukraine<\/strong> and the <strong>Middle East<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways The UK and France have reached a landmark agreement with Oman to secure sovereign territorial waters in the 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