What next after U.S. strikes on Iran and Europe's 5% defense problem

preCharge News POLITICS — After a week of global market jitters, the reaction to U.S. strikes on Iranian nuclear facilities will be front and center in the coming days. Alongside this, a trio of heavyweight events will shape both the economic and geopolitical mood:

NATO tensions in The Hague
Trade talks in Tianjin, China
Industrial optimism in Berlin

Investors will be watching closely.

Tense NATO Summit Ahead

Trump to Push Europe on Defense Spending

The stage is set for tense talks at the NATO Summit in The Hague on Wednesday, where President Donald Trump is expected to push Europe to increase defense spending.

Rising Middle East Tensions Add Complexity

In addition to Europe’s defense budgets, ongoing Middle East hostilities — including between Israel and Iran — will weigh heavily on the summit.

U.S.-Iran-Israel: Geopolitical Escalation

Trump Declares “Spectacular Military Success”

On Saturday, Trump said strikes on three of Iran’s nuclear sites were a “spectacular military success” that “completely obliterated” key enrichment facilities — marking the first-ever direct U.S. military attack on Iran.

Iran Vows to Respond

Iranian Foreign Minister Abbas Araghchi denounced the strikes as “outrageous” and reaffirmed that Iran “reserves all options to defend its sovereignty.”

Global investors are now scrambling to assess the fallout on oil prices, trade routes, and geopolitical stability.

NATO Defense Debate Rekindled

Trump’s Past Clashes Resurface

At past NATO summits, Trump repeatedly questioned America’s commitment to the alliance, accusing members of falling short on defense contributions.

2025: New NATO Targets

Now in 2025, Trump’s NATO demands have evolved, with U.S. officials insisting the 5% GDP defense spending target is non-negotiable — sparking controversy among member states like Spain.

Summer Davos in China

Trade Talks Dominate Tianjin Forum

Across the globe, Tianjin will host the World Economic Forum’s Summer Davos (Tuesday–Thursday), with China–U.S. trade talks high on the agenda.

TikTok Deadline Looms, Trade Tensions Simmer

Though Trump recently extended the deadline for ByteDance to sell TikTok’s U.S. business, overall trade negotiations remain tense, with U.S. tariffs still in place and a lack of diplomatic progress.

Europe’s Economic Engine Revs Up

H3: Germany’s Day of Industry Highlights Growth

In Berlin, Germany’s Day of Industry Conference kicks off on Monday and Tuesday, showcasing the latest in German economic policy and global trade strategy.

Auto Industry Caution Amid Growth Optimism

While Germany’s economic outlook has improved, the domestic auto industry faces headwinds — shouldering an estimated €500 million in recent costs due to shifting global dynamics.