{"id":64363,"date":"2026-07-07T09:08:16","date_gmt":"2026-07-07T13:08:16","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/trump-signals-potential-f-35-deal-for-turkey-amid-nato-tensions-and-middle-east-volatility\/64363\/"},"modified":"2026-07-07T09:08:16","modified_gmt":"2026-07-07T13:08:16","slug":"trump-signals-potential-f-35-deal-for-turkey-amid-nato-tensions-and-middle-east-volatility","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/trump-signals-potential-f-35-deal-for-turkey-amid-nato-tensions-and-middle-east-volatility\/64363\/","title":{"rendered":"Trump Signals Potential F-35 Deal for Turkey Amid NATO Tensions and Middle East Volatility"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>President Trump<\/strong> signaled a potential reversal of the ban on <strong>F-35<\/strong> fighter jet sales to <strong>Turkey<\/strong>, describing the nation as a &quot;loyal ally&quot; during the <strong>NATO<\/strong> summit in Ankara.<\/li>\n<li><strong>Iran<\/strong> allegedly launched missile strikes against a Qatari LNG tanker, the <em>Al Rekayyat<\/em>, and a Saudi vessel in the <strong>Strait of Hormuz<\/strong>, sparking a sharp condemnation from Doha.<\/li>\n<li><strong>New York Fed President John Williams<\/strong> stated that monetary policy is &quot;in a good place&quot; to achieve central bank goals, though he warned that inflation remains &quot;quite high.&quot;<\/li>\n<li><strong>Trump<\/strong> criticized European allies, specifically <strong>France<\/strong> and <strong>Germany<\/strong>, for refusing to support U.S. military actions in <strong>Iran<\/strong>, hinting at further troop drawdowns in the region.<\/li>\n<\/ul>\n<h2>Trump Eyes F-35 Rapprochement with Turkey<\/h2>\n<p>During a high-stakes bilateral meeting at the <strong>NATO<\/strong> summit in Ankara, President <strong>Donald Trump<\/strong> indicated that the U.S. is seriously considering re-admitting <strong>Turkey<\/strong> into the <strong>F-35<\/strong> stealth fighter program. Turkey was expelled from the program in 2019 following its purchase of the Russian <strong>S-400<\/strong> missile defense system, but Trump praised President <strong>Recep Tayyip Erdogan<\/strong> as a &quot;strong leader&quot; and suggested a &quot;favorable decision&quot; on the jets could be imminent.<\/p>\n<p>The potential deal faces significant opposition from <strong>Israel<\/strong>, with Prime Minister <strong>Benjamin Netanyahu<\/strong> warning that providing Turkey with <strong>F-35s<\/strong> or advanced engines could &quot;upset the power balance&quot; in the Middle East. Despite these concerns, the Trump administration has already notified Congress of its intent to sell <strong>$700 million<\/strong> worth of jet engines to Ankara, signaling a major shift in regional defense diplomacy.<\/p>\n<h2>Maritime Aggression in the Strait of Hormuz<\/h2>\n<p>Tensions in the Persian Gulf reached a breaking point as <strong>Qatar&#39;s Foreign Ministry<\/strong> accused <strong>Iran<\/strong> of &quot;unacceptable aggression&quot; following an attack on the LNG tanker <em>Al Rekayyat<\/em>. The vessel, owned by <strong>Nakilat<\/strong> (<a href=\"\/stock\/QGTS\">QGTS<\/a>), was reportedly struck by a drone or missile near the <strong>Strait of Hormuz<\/strong>, leading to an engine room fire and raising fears of a potential explosion.<\/p>\n<p><strong>Iran<\/strong> has denied direct responsibility but claimed the tanker ignored warnings while traveling through non-approved routes. The incident has sent ripples through energy markets, with <strong>Brent Crude<\/strong> (<a href=\"\/stock\/BRENT\">BRENT<\/a>) rising toward <strong>$73 per barrel<\/strong> and <strong><a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">West Texas Intermediate<\/a><\/strong> (<a href=\"\/stock\/WTI\">WTI<\/a>) climbing above <strong>$69<\/strong> as shipowners express growing wariness over the safety of the world&#39;s most critical oil chokepoint.<\/p>\n<h2>Fed\u2019s Williams Maintains &quot;Wait and See&quot; Stance<\/h2>\n<p>On the economic front, <strong>Federal Reserve<\/strong> Bank of New York President <strong>John Williams<\/strong> told <em>Fox Business<\/em> that current monetary policy is well-positioned to balance risks to growth and inflation. Williams noted that while the &quot;peak impact&quot; of tariffs has likely been reached, the central bank remains vigilant as <strong>inflation<\/strong> continues to sit above target levels.<\/p>\n<p><em>Market analysts<\/em> are closely watching the Fed&#39;s next moves, as Williams suggested that the recent retreat in energy prices is &quot;good news&quot; that should eventually cool headline inflation. However, he emphasized that future policy shifts will remain strictly data-dependent, particularly as the job market shows signs of &quot;stability&quot; despite geopolitical volatility.<\/p>\n<h2>NATO Unity Tested by Iran Conflict<\/h2>\n<p>The <strong>NATO<\/strong> summit has been overshadowed by President Trump\u2019s blunt criticism of European allies who declined to participate in recent U.S. military operations against <strong>Iran<\/strong>. Trump specifically named <strong>France<\/strong> and <strong>Germany<\/strong> as nations that &quot;turned us down,&quot; asserting that he was &quot;testing allies&quot; to see who would stand by the U.S. after years of American investment in the alliance.<\/p>\n<p>When asked about the potential for further <strong>U.S. troop drawdowns<\/strong> in Europe, Trump responded with a cryptic &quot;we&#39;ll have to see,&quot; further fueling anxiety among European leaders. The administration has already ordered the removal of <strong>5,000 troops<\/strong> from Germany, a move widely interpreted as a punitive response to Berlin&#39;s lack of support for the administration&#39;s Middle East strategy.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways President Trump signaled a potential reversal of the ban on F-35 fighter jet sales to Turkey, describing the 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