{"id":65490,"date":"2026-07-27T14:08:18","date_gmt":"2026-07-27T18:08:18","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/trump-signals-shift-in-middle-east-alliances-amid-iran-tensions-and-ai-credit-risks\/65490\/"},"modified":"2026-07-27T14:08:18","modified_gmt":"2026-07-27T18:08:18","slug":"trump-signals-shift-in-middle-east-alliances-amid-iran-tensions-and-ai-credit-risks","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/trump-signals-shift-in-middle-east-alliances-amid-iran-tensions-and-ai-credit-risks\/65490\/","title":{"rendered":"Trump Signals Shift in Middle East Alliances Amid Iran Tensions and AI Credit Risks"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/trump-signals-shift-in-middle-east-alliances-amid-iran-tensions-and-ai-credit-risks\/65490\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/trump-signals-shift-in-middle-east-alliances-amid-iran-tensions-and-ai-credit-risks\/65490\/#Geopolitical_Shifts_Trump_Turkey_and_Israel\" >Geopolitical Shifts: Trump, Turkey, and Israel<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/trump-signals-shift-in-middle-east-alliances-amid-iran-tensions-and-ai-credit-risks\/65490\/#AI_Investment_Boom_Faces_Credit_Risk_Scrutiny\" >AI Investment Boom Faces Credit Risk Scrutiny<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/trump-signals-shift-in-middle-east-alliances-amid-iran-tensions-and-ai-credit-risks\/65490\/#Iran_Conflict_Blockades_and_%22Deep_Talks%22\" >Iran Conflict: Blockades and &quot;Deep Talks&quot;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/trump-signals-shift-in-middle-east-alliances-amid-iran-tensions-and-ai-credit-risks\/65490\/#EU_Sanctions_Strategy_Overhaul\" >EU Sanctions Strategy Overhaul<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/trump-signals-shift-in-middle-east-alliances-amid-iran-tensions-and-ai-credit-risks\/65490\/#NYC_Mayor_Mamdani_Addresses_Domestic_Tensions\" >NYC Mayor Mamdani Addresses Domestic Tensions<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Trump Rejects Israeli Veto on Arms Sales:<\/strong> President Donald Trump dismissed Prime Minister Benjamin Netanyahu&#39;s opposition to selling <strong>F-35<\/strong> fighter jets to <strong>Turkey<\/strong>, asserting, &quot;Nobody tells me what we should be selling.&quot;<\/li>\n<li><strong>AI Market Correction Labeled a Major Credit Risk:<\/strong> <strong>Fitch Ratings<\/strong> (<a href=\"\/stock\/FITCH\">FITCH<\/a>) warned that the U.S. credit outlook is increasingly levered to AI investment confidence, citing a potential market correction as a primary threat to global credit stability.<\/li>\n<li><strong>U.S.-Iran Conflict Enters Fragile Diplomatic Phase:<\/strong> After 13 nights of airstrikes, President Trump has paused military action to allow &quot;space&quot; for ongoing talks, though he warned that Iran&#39;s &quot;whole shoreline&quot; could be wiped out if diplomacy fails.<\/li>\n<li><strong>EU Restructures Sanctions After Greek Veto:<\/strong> Brussels is moving toward smaller, thematic sanctions packages to prevent individual member states like <strong>Greece<\/strong> from blocking major geopolitical measures to protect domestic shipping magnates.<\/li>\n<li><strong>NYC Mayor Mamdani Vows Safety Amid Netanyahu Feud:<\/strong> New York City Mayor <strong>Zohran Mamdani<\/strong> emphasized his priority is the safety of all New Yorkers, including Jewish residents, while clarifying that his criticisms of Netanyahu are based on &quot;objective facts&quot; rather than personal attacks.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Geopolitical_Shifts_Trump_Turkey_and_Israel\"><\/span>Geopolitical Shifts: Trump, Turkey, and Israel<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>President <strong>Donald Trump<\/strong> has signaled a significant cooling in his relationship with Israeli Prime Minister <strong>Benjamin Netanyahu<\/strong>, describing himself as &quot;not a big fan&quot; of the leader while praising <strong>Turkey<\/strong> as a &quot;tremendous ally.&quot; Speaking aboard Air Force One, Trump rejected Israeli concerns that selling <strong>F-35<\/strong> stealth fighters to Ankara would &quot;destroy the power balance&quot; in the Middle East.<\/p>\n<p>The President emphasized that while Turkey and Israel may have a strained relationship, Turkey has been &quot;great&quot; for his administration&#39;s regional goals. This policy reversal comes despite the 2019 suspension of Turkey from the <strong>F-35<\/strong> program due to its purchase of Russian S-400 systems. Trump indicated he is now open to lifting those sanctions to reward Turkish &quot;loyalty.&quot;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"AI_Investment_Boom_Faces_Credit_Risk_Scrutiny\"><\/span>AI Investment Boom Faces Credit Risk Scrutiny<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Fitch Ratings<\/strong> (<a href=\"\/stock\/FITCH\">FITCH<\/a>) released its 3Q26 Global Risk Outlook today, identifying an <strong>AI-related market correction<\/strong> as a top-tier credit risk. The agency noted that <strong>IT capital investment<\/strong> grew 18% year-on-year in 1Q26, contributing 1.4 percentage points to U.S. GDP growth. This heavy reliance on AI optimism has made capital markets vulnerable to any re-evaluation of long-term returns.<\/p>\n<p>The report highlights that the wealth effect from AI-driven equity gains has supported slowing consumer spending. However, with <strong>U.S. GDP growth<\/strong> forecasts lowered to 1.9% and the <strong>Federal Reserve<\/strong> expected to hold rates at 3.75%, any sharp decline in tech valuations could trigger broader credit contagion across corporate and private markets.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Iran_Conflict_Blockades_and_%22Deep_Talks%22\"><\/span>Iran Conflict: Blockades and &quot;Deep Talks&quot;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The military standoff in the <strong>Strait of Hormuz<\/strong> has entered a cautious pause as the U.S. and Iran engage in what Trump described as &quot;very deep talks.&quot; The President claimed the U.S. naval blockade has cost Iran roughly <strong>$500 million daily<\/strong>, with total oil revenue losses estimated at <strong>$4.8 billion<\/strong> since April.<\/p>\n<p>Despite the pause in airstrikes, Trump maintained a hardline stance, stating that Iran&#39;s &quot;whole shoreline is wiped out&quot; in terms of military readiness and that the U.S. remains &quot;locked and loaded&quot; to resume strikes. <a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">Oil prices<\/a> responded to the temporary de-escalation, with <strong>Brent crude<\/strong> falling over 7% to briefly drop below <strong>$90 per barrel<\/strong>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"EU_Sanctions_Strategy_Overhaul\"><\/span>EU Sanctions Strategy Overhaul<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The <strong>European Union<\/strong> is fundamentally rethinking its sanctions architecture after <strong>Greece<\/strong> leveraged its veto to protect shipping magnate <strong>George Prokopiou<\/strong>. Athens successfully secured a 12-month exemption for <strong>Dynagas<\/strong> to continue transporting Russian liquefied natural gas (LNG) to non-EU countries, a move that delayed the bloc&#39;s 21st sanctions package for weeks.<\/p>\n<p>In response, Brussels officials are planning to abandon massive, unified &quot;packages&quot; in favor of smaller, thematic restrictions. This strategy aims to prevent single nations from holding unrelated financial or military sanctions hostage to protect domestic corporate interests, marking the first major structural change to EU sanctions since 2022.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"NYC_Mayor_Mamdani_Addresses_Domestic_Tensions\"><\/span>NYC Mayor Mamdani Addresses Domestic Tensions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>New York City Mayor <strong>Zohran Mamdani<\/strong> addressed the rising rate of hate crimes against Jewish New Yorkers, calling the trend &quot;unacceptable&quot; and vowing to make their safety a top priority. The Mayor sought to decouple his domestic responsibilities from his public feud with <strong>Benjamin Netanyahu<\/strong>, stating that his duty is to protect all New Yorkers regardless of their political views.<\/p>\n<p>Mamdani clarified that his administration does not have the legal authority to arrest the Israeli Prime Minister, walking back earlier campaign rhetoric. However, he maintained that his criticisms of Netanyahu\u2019s policies are &quot;objective facts&quot; and encouraged New Yorkers to exercise their First Amendment rights during the upcoming <strong>UN General Assembly<\/strong> in September.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Trump Rejects Israeli Veto on Arms Sales: President Donald Trump dismissed Prime Minister Benjamin Netanyahu&#39;s opposition to selling 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