The Situation Room: Europe and the U.S. Collide

The Situation Room: Europe and the U.S. Collide

by | published February 4th, 2019

Welcome back to another Monday Situation Room briefing. Last week ended with some significant headlines, so this week I’ll be monitoring the aftereffects on both the oil and defense markets.

So, here are the first two of the top four situations I’ll be watching this week.

1. The INSTEX Factor

First and foremost this week, I’ll be assessing whether INSTEX will have an impact on global oil export flows and finance.

INSTEX is the European move to provide barter arrangements for Iranian trade in evasion of U.S. sanctions, and could prove to make things get even more complicated in the geopolitical realm.

2. Treaty Troubles

Second, I will be examining what elements in the U.S. defense sector will be impacted by the decisions of both the U.S. and Russia to suspend the Intermediate-Range Nuclear Forces Treaty.

This was a treaty signed by President Reagan and Mikhail Gorbachev in 1987 that eliminated land-based ballistic and cruise missiles and their launchers. This was the culmination of the arms race that dominated the Cold War.

In October 2018, President Trump claimed that Russia was not upholding the terms of the treaty, and suspended it on Friday.

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