As Iran considers tariffs on Hormuz internet cables, how can fees threaten Europe’?

Iran, in a new attempt to put West’ under economic pressure, raises the idea of implementing ’ access fee“ to undersea internet cables passing through the Strait of Hormuz”; This is a move that could further strain global trade following the blockage of the transition.

The plan was first proposed by Tasnim, an Iranian news agency affiliated with the ’na (IRGC) of the Islamic Revolutionary Guard Corps.

Questions arose about who exactly should pay such tariffs and what types of services will be targeted.

From a logistical point of view, companies that operate cables under the Strait Iran’a will have to pay a “access fee”, while from a regulatory point of view, tech giants such as Google, Meta, Microsoft and Amazon will have to vaguely follow the rules defined as “Iranian laws.

Third, the Islamic Republic can also undertake cable maintenance in the Strait of Hormuz and charge more accordingly.

the " Movements" can produce itup to 13 billion Euro’ for the country.

From Ege’ to Spain’ya: How does Europe get involved?

According to the Submarine Telecom Forum’, European ’ firms from France, Italy, Greece and the UK own or are part of a management consortium of at least four cables that run under Hormuz​​.

Two of these cables are particularly important as they connect the Asya’ to the European’.

The first of these is Asia Africa Europe-1 (AAE1)’, whose owners include Italy’'s Retelit and Greece’'s OTEGLOBE’. Crete, Bari and Marseille reach the ’ landing points.

Secondly, PEARLS/2Africa, part of the world's largest undersea cable system, runs under the ’ of Sicily before arriving in Genoa, Marseille and Barcelona’.

Strait of HormuzDetail of ’'s Submarine Cable Map

How much do wages pose a threat to Europe?

Currently, there is no consensus among experts on the threats posed by Iran’.

Some argue that if the country actually imposes wages, the results will likely extend far beyond telecommunications infrastructure, affecting global trade, maritime law, military strategy, internet governance, and big power policies.

Meredith Primrose Jones, president of geopolitics and risk and compliance consulting firm Leidra’, said: “European ​​finance institutions, cloud providers, telecommunications firms and multinational companies rely heavily on low-latency submarine cable networks for banking operations, digital services, energy trading and industrial operations.”

A mass cargo ship is docked at the Strait of Hormuz, ’, off the coast of Bandar Abbas, ’, Iran, on Saturday, May 2, 2026.

Any increase in political risk around the Strait of “ could increase connectivity costs, delay infrastructure projects, and create greater vulnerability for Europe’'s digital economy at a time when the region is already focused on strengthening technological resilience and strategic autonomy, ” said.

On the other hand, threats of tariff cuts and even physical sabotage of the cable are greatly underestimated by other experts.

International Cable Protection Committee (IPCC) Europe in Motion’a “Strait of Hormuz onstitutes less than ’, ” said.

The IPCC says the impact will be minimal, even in the event of cable failure, thanks to backup systems connected to the Gulf region.

Many cable systems serving the “ Bay region use branching architectures connected to larger international mainline systems, the committee said. “This network design provides additional operational flexibility and durability and helps minimize the impact of individual cable failures.”

He explained that submarine cable failures were not unusual operational events.

IPCC, “About 150-200 submarine telecommunications cable failures occur each year around the world, and about %The 70-80’i is caused by accidental human activity, such as commercial fishing activity and ship anchors, rather than sabotage, ” said.

Does anyone else charge for submarine cable access?

Iran’'s plan is not unique: Egypt already charges for underwater cable access, which provides significant revenue for the country's Telecom business model.

A Work carried out by submarinenetworks.comIn the period 2000-2019, it is estimated that the cost of landing rights, maintenance and operational support for each underwater cable operator will be approximately 1.5 million euros.

Egypt is described as a global telecommunications transit point due to the large number of cables passing through it.

The most important difference of Hormuz’ is that the cables passing through Mısır’ physically pass through its territory and are connected to its terrestrial infrastructure.

An IRGC speedboat Strait of HormuzCargo ship in ’ approaching Epaminondas’a, 21 April 2026

In contrast, most of the cables in Hormuz’ do not enter Iranian territory, which means that Tehran’ will have little legal basis for paid access.

The United Nations Convention on the Law of the Sea (UNCLOS) protects maritime flows and international navigation in this sense.

Iran signed the agreement in ’ in 1982, but never ratified it.

Jones, “, therefore, said that a unilateral toll system targeting global cable infrastructure would be broadly interpreted as an overuse of coastal state authority under UNCLOS principles.

Spain is stepping on the gas: the Firms ' ’ now has a strategy of reindustrialization

Reindustrialization is now just one statement of intent.Three of the four major European ​​ and U.S. companies already have a strategy in place. “Return of the industry: Europe and the United StatesReindustrialization strategies in ’According to the latest data collected in the ” report (source in Spanish)”, produced by the Capgemini Research Institute, European ​​ and US companies %the 73 ’At least one such plan is currently in place. the 2024 ’te .This figure is even higher in Spain’. %76Fifty percent of companies have a reindustrialization strategy and are working.

But, uh, Money at the table collapsed.: From $4.7 trillion planned last year to barely 2.5 trillion for the next three years. Despite these numbers, the result is not negative. Decrease in investment He didn't retreat. . . Instead, the report notes that “ is fine-tuning towards more selective and less capital-intensive ” models.

Most companies aren't looking anymore. only instant returnsbut to avoid relying on supply chains that can break from one day to the next. ’si now prioritizes durabilityover the short-term profit of production chains and to ensure that production closer to home does not become exorbitantly expensive, ’si plans to invest in artificial intelligence (AI), ,automation and digital twins.

U.S. brings industry home as Europe looks outside

The environment of reindustrialization is far from uniform. During the United States of Americaspeeding up the return of factories to their territory ( Don't go back to shore), Europe increasingly prefers to produce in allied countries ( meeting of friends). In both cases, countries India, Vietnam, Mexico and CanadaGaining ground as alternative destinations People of ChinaBut more than half of the companies have no intention of withdrawing from the Chinese market. The goal is not to break ties with anyone, but to distribute risk more evenly.

In this context, Spain stands out as one of the most remarkable examples in the report. Just two years ago %45The proportion of Spanish companies had a defined reindustrialization strategy. Today, that share has risen. %76.Category: Spanish rulers ’i acknowledges that geopolitical pressure is what drives them to act, and ’i sticks to its plansEven if costs increase in the short term.

Nvidia Germany outperformed ’: How do the market values of tech giants compare to the best economies?

The economic size of technology giants and multinational companies has grown rapidly in recent years. Nvidia reached a market cap of $5.7 trillion in mid-May. The company now surpasses the entire economy of ’, Germany, the world's third-largest economy and Europe's largest economy, at $5.45 trillion in gross domestic product (GDP).

So how does the market capitalization of tech giants and multinational corporations compare to the world's largest economies? Where does Europe stand?

Nvidia, the US-based semiconductor company whose chips power everything from video games to artificial intelligence systems, is the world's most valuable company. October 2025After ’te became the first company with a market capitalization exceeding $5 trillion (4.38 trillion euros), its value reached $5.7 trillion (4.89 trillion euros) in mid-May 2026.

In terms of economic size, Japan and Britain already outperform ’, while Germany now outperforms ’'s projected GDP ’ for 2026, according to IMF’. Market cap data from CompaniesMarketCap’ as of May 14, 2026.

The IMF estimates that ’'s 2026 GDP will be $5.45 trillion (4.67 trillion euros). The U.S. remains the world's largest economy with $32.38 trillion (27.75 trillion euros), followed by China with $20.58 trillion (17.87 trillion euros).

Since Germany is ’'s largest economy, the market capitalization of Nvidia’ exceeds this, which means that the company is now larger than all European economies; These include Britain $4.26 trillion (3.65 trillion euros), France $3.6 trillion (3.08 trillion euros), Italy $2.74 trillion (2.35 trillion euros), and Spain $2.09 trillion (1.79 trillion euros).

Nvidia exceeds the total GDP ’ of 19 EU countries

Alphabet (€4.12 trillion) and Apple (€3.75 trillion) are also larger than all European economies except Germany. France (3.08 trillion euros) outperforms Microsoft’ (2.61 trillion euros) and Amazon’ (2.46 trillion euros) in economic size. But both companies still exceed ’'s GDP (€2.35 trillion) in Italy, the continent's fourth-largest economy.

The total GDP ’ of the 19 smallest EU economies totals $5.02 trillion (€4.3 trillion), which is still below Nvidia’'s $5.7 trillion (€4.88 trillion) market cap.

Nvidia CEO Jensen Huang attended Donald Trump’'s high-profile visit to China’ this week. In March, Huang said that increasing demand for artificial intelligence could boost Nvidia’'s sales to $1 trillion in two years.

Top 5 U.S. companies and Europe’'s top five economies

The five largest companies in ’ (Nvidia, Alphabet, Apple, Microsoft and Amazon) have a total market capitalization of $20.81 trillion (17.84 trillion euros). This exceeds the total GDP ’ of Europe’'s five largest economies (Germany, England, France, Italy and Spain); That's $18.14 trillion ($15.55 trillion).

No European ​​ company can come close to US tech giants

Dutch chip maker ASML ranked 21’th with a market capitalization of $610.69 billion (€523.66 billion), making it the European ​​ company at the top of the list. Europe’ doesn't have a company on a scale comparable to the US tech giants.

Swiss pharmaceutical giant Roche’ has a market capitalization of $335.1 billion (€287.44 billion), while UK-based AstraZeneca has a market capitalization of $286.84 billion (€246 billion).

Market capitalization and GDP measure different things. GDP reflects the total value of goods and services produced by an economy within a year, while its market value represents the market value of a company's equity and reflects investors' expectations about future earnings and growth prospects.

Yet the comparison offers a striking example of the scale these companies have reached.

Tariffs, weak demand and climatic turmoil drive AB’'s trade investment rate to 11-year low

European ​​ enterprises are withdrawing their investments.

According to new Eurostat data, AB’'s trade investment rate fell to its lowest level in more than a decade in the fourth quarter of 2025’ .8’e has arrived.

The ratio basically measures how much companies invest in things like machinery and buildings based on the total value they create.

The index takes into account “ regular businesses such as hotels, factories, supermarkets, airlines, etc., not banks and financial companies.

Interestingly, according to Eurostat’, the rate of work in AB’ in Q4 2019, driven by increases in intellectual property imports and dynamics of globalization (.77) While COVID-19 peaked just before ’, the current rate is the deepest point recorded after the last major financial crisis. %It is only one point above 20.93’ (first quarter of 2010).

Where are businesses reinvesting in the economy at least?

Strikingly, some of the lowest investment rates came from the main business centers of Avrupa’: Luxembourg, Ireland and the Netherlands, all %Less than 17’.

Although the proportion of Luxembourg ’ has historically been low due to the country's small industrial sector, Ireland has suffered a loss of 27 percentage points in less than a decade.

Antonio Fatas, INSEAD Professor of Economics, Europe in Motion’a says: “Business investment is an important determinant of GDP growth. Investments in equipment, software and factories are clearly behind the growth engine of … productivity.”

This is even more important for ’, which Professor Fatas“ describes as the ”shocking“, because in recent years, when it comes to productivity growth, the USA lags behind ’. %With a difference of 2’.

At the same time, Greece is almost %With 10 2015While experiencing one of the fastest increases across the bloc since ’, Hungary and Croatia saw the highest rates across the bloc; Both in the last year. It reached the record of over ’ singular countries.

Why can companies back off and bring in new investments in defense?

The European Central Bank (ECB) has several answers following its survey of the 64 leading firms in the euro area on recent and expected investment decisions and the factors that drive or restrict them.

Approximate number of large businesses surveyed %The 90’'s hesitation about spending stems from the current weak demand.

At the same time, companies %They are also deeply concerned about the low profitability, regulatory burdens and labor costs cited by more than 80’.

EurozoneFactors restricting investment in ’

Geopolitical tensions have also negatively affected manufacturers, especially those affected by tariffs and the disruption of the war.

They also said unpredictable climate regulations weigh more on their long-term plans than the current energy crisis.

At the same time, the ECB noted that “ expects increased defense spending to be widely perceived as a potential catalyst for investment, and half of ”industrial firms and one-fifth of service companies expected increased defense spending to support their investments over the next three years.

The research is conducted on the majority of 39 enterprises operating in the industrial sector, while the other 25 businesses focus primarily on the service sector.

MEP trade chief says ‘AB legislation can't be dictated by social media threats’

German lawmaker Bernd Lange (S&D), ’'s chief negotiator on the EU-U.S. trade deal, defended the EU legislative process aimed at implementing the agreement on Friday, opposing U.S. criticism that ’'s European Union is moving too slowly.

Comments came after US President Donald Trump’ was given toUnder the agreement signed with European Commission President Ursula von der Leyen at Turnberry’ last year, the EU will reduce customs duties on U.S. goods to zero by 4 July’, otherwise warning of new customs duties on European products.

Washington has stepped up pressure on Brussels to accelerate legislation needed to implement the deal. But negotiations between AB’'s legislators is defectiveWednesday night to make a deal.

In a statement, Lange said “European legislation cannot be dictated by threatening Washington’'s social media posts, adding: Our democratic procedures are non-negotiable. "Even in stormy weather, we move on decisively." - ”

Last week, Trump told EU tools if the bloc fails to implement its part of the deal. threatened to impose tariffs; the Turnberry’ It was well above the ’ ceiling.

Recent threats have not changed negotiations between the AP’s and member states due to assurances that Parliament ’ wants to be added to the deal.

Decisions of the U.S. Courts

Since the signing of the agreement, Parliament has been among the harshest critics of the agreement, with legislators saying that EU’nin %He denounced the regulation, which he sees as a disproportionate arrangement in which he faces 15 customs duties and has reduced his own customs duties to zero while committing large investments in the U.S. ’.

MEPs suspended the deal earlier this year after Trump’ threatened tariffs against Europe’ in an effort to buy Greenland’. Parliament then added conditions to the agreement, including a ’ termination clause that ended the agreement in March 2028, new threats from “ and Washington ”, market distortions linked to U.S. imports, or a suspension mechanism in the event of economic pressure.

Lange said security measures, including ’'s decision on Thursday to block tariffs affecting three plaintiff companies and the Supreme Court's ruling in February that outlawed ’'s 2025 tariffs, should also protect the agreement against growing legal uncertainty in the U.S. ’.

Member of the European Parliament, “All this underscores the importance of a stable European safety net, ” said.

“ Europe must have the capacity to act. We must support the agreement and at the same time be able to react quickly if the attitude of the US ’ changes again. Otherwise, everything becomes recklessness and narrow-mindedness. - ”

Lange confirmed that a new round of negotiations between EU lawmakers and member states will take place on 19 May’; Both sides hoped to achieve a deal that could be ratified by Parliament in June ahead of Trump’'s deadline.

Europe and America Continent: Where is the number of billionaires growing the fastest?

The number of dollar billionaires is increasing and showing no signs of slowing down. Global billionaire population increased from 2,723’ in 2021’ to 3,110’ in 2026’; That's only in five years. %An increase of 14’.

Speed is expected to increase. Knight Frank’'s 2026 Asset ReportThe number of billionaires over the next five years, according to ’ %It will increase by 26 to reach 3,915’ in 2031.

Europe will be one of the main drivers of this growth. The number of European ​​ billionaires 2026’da 780’den 2031’de %It is expected to increase by 27 to 994’e.

Liam Bailey, head of global research at Knight Frank’, said “ is witnessing one of the most significant shifts in global wealth distribution in modern history.

Which countries will see the biggest increase in the number of billionaires? How does ’'s billionaire growth compare to America's?

The report tracks the top 20 countries with the fastest growth in forecasts. Eight of them are in the European ’ and dominated by the Scandinavian countries.

Saudi Arabia among 20 billionaires %It is at the top of the list with an increase of 183, and by 2031 the number of billionaires will increase from 23’ to 65’.

Nordic countries are driving the growth of Europe’

Poland is the leader of the European ’. More than double the number of billionaires %It is expected to increase from 13’ to 29’ with an increase of 123.

Sweden is second in the European ’ and third worldwide, growing 81% from 32’ to 58’. This is followed by Denmark, which rose 75 percent from 12’ to 21’.

Norway, the number of billionaires %With an increase of 53’ from 17’ to 26’, it strengthens Scandinavian rule. Three of the four fastest growing European countries are from Scandinavian countries.

Number of billionaires in Austria %An increase of 50’ will increase from 12’ to 18’. This is followed by Spain with 40 percent growth and will reach 53’ at 2031’. EuropeAnother major economy of ’, ItalyThe number of ’'s billionaires is projected to increase from 61’ to 82’.

Turkey, which is a candidate country for EU’, is expected to grow by 31 percent from 35’ to 46’.

These rankings are based on five-year growth rates. That's why there are no big economies like Britain, Germany and France. For example, Germany was at the top of Europe's ’ with 171 billionaires in 2025, according to Forbes’.

When the same 20 countries are ranked by the total number of billionaires in 2031, India leads with 313 billionaires, followed by Australia and Singapore with 85’er billionaires.

Among the European countries on the list, Italy ranks first with 82 billionaires. Sweden’ is expected to pass Spain’ with 53 points to reach 58 points.

Bailey pointed out that despite major geopolitical shocks and inflationary pressures, private capital showed extraordinary resilience. Its latest results reflect a deep structural momentum in wealth creation worldwide.

Number of billionaires: Europe and the Americas

World leader in Asia-Pacific billionaires. 1,116 billionaires in 2026 %It makes up 36’.

Do this for me %With 34 followed by the continent of America, in North America and %It is divided between 3 and Latin America. Europe makes up a quarter of the world's billionaires.

By 2031, the number of European ’ billionaires will rise from 780 ’ to 994 ’, approaching 1,000 ’. With a slight increase in global share %It will be 25.4’e.

North America will increase the number of billionaires from 995 ’ to 1,089 ’. But its share from ’ %It will fall to 27.8’e, which will make it the only region where its share falls.

Rory Penn, head of the Knight Frank Special Office at “, said that what we are seeing on the ground is an increase in wealth creation in a more complex global economic environment.

The “Ultra rich are becoming noticeably more mobile, but the list of markets where they feel really comfortable investing or basing their family has narrowed.”

Security and rule of law

The report highlights that the most advanced families now split their wealth across multiple offices (typically the Americas, Europe and Asia Pacific). This diversity stems from the deep need for security and the rule of law.

Despite the high taxes and political inconsistency in “, in the words of an Australian mining billionaire, while other global investors increasingly see Europe’ as a museum, not a place to invest in ’, some prominent families are still flocking to London‘, as ’ is still the rule of law.

Volkswagen’ profit plummets as automaker signals more cost cuts

On Thursday, weaker German car giant Volkswagen’ warned its future is at risk if more cost cuts are not made, after profits fell more than expected amid geopolitical tensions, trade tariffs and intense competition.

Net profit of the group from January to March %€1.56 billion in ’ya, down 28 percent, and revenues worse than analysts' estimates %2 declined to 75.7 billion Euro’.

VW chief financial officer Arno Antlitz, “, said that the cost reductions planned so far are not enough”. “We need to fundamentally change our business model and deliver structural, sustainable improvements in all areas and at all levels. If we fail to do so, we are jeopardizing our future. - ”

Antlitz said a multi-tiered cost reduction program could include reducing vehicle production costs without reducing quality, significantly reducing overhead and improving the efficiency of our “ factories and accelerating technology development and decision-making.

Car manufacturer already He plans to lay off 50,000 people.By 2030 Germanyat all its brands in ’.

With 10 brands ranging from Audi’ to SEAT and Škoda’, VW will have to adjust its capacity and “ will work to further optimize costs in our factories.

He warned that Chinese automakers not only competed on their own territory, but also gained market share in the European ’.

Automakers such as BYD have emerged as relentless competitors in the Volkswagen’in China’, traditionally a major source of profit for the German manufacturer, especially in the EV segment.

China's ’ sales are slowing

Antlitz also said that tariffs imposed by US President Donald Trump ’ a year ago cost the group an extra 4 billion euros per year.

Volkswagen in the first quarter compared to the previous year %It sold 2 million vehicles, down 7 percent. South America (+%3), Western Europe (+%1) and Central and Eastern Europe in ’ (+%7) growth, China (-) and North America in ’ (-%9) partially compensated for the declines.

General sales in 2026. %With a 0 %It will grow between 3 and the core profit margin will also %With a 4 %He estimates it'll be between 5.5.

Volkswagen said it was not included in the estimates because the possible effects of the war on the Middle East ’ could not be reliably assessed.

GermanyOne of ’'s most recognizable companies, Volkswagen’in's woes reflect a more general disturbance in Europe’'s largest economy, especially among traditional manufacturers.

The company's annual profit fell to its lowest level in almost a decade in 2025’te.

On Thursday, CEO Oliver Blume said VW’ should align its strategy with a new world of “, which is undergoing fundamental change.

Wars, geopolitical tensions, trade barriers, tighter regulations and intense competition are creating adverse winds, “ said.

Following the report, the share price of Avrupa’da rose slightly in the morning.

From explanations to actions: Which European countries spend the most on defense?

European ​​ leaders seem to be fulfilling their promise to spend more on defense.

Following US pressure from President Donald Trump, which ’ scolded NATO allies for failing to meet their defense spending goals, the continent's investments in 2025’ %It increased by 14 (more than any other continent) to 739 billion Euro’.

According to the Stockholm International Peace Research Institute ’ne (SIPRI), this is the steepest climb seen since the 1950s and twice as high as 10 years ago. Many NATO members agree that the GDP set for 2035 %It is taking action to achieve its new spending target of 5’i.

Berlin invested about 97 billion euros in defence last year; This is according to 2024’e in expenditures %That's an increase of 24’.

This means that Germany ’ is now Europe ’'s largest defense investor, surpassing the UK ’, and is the world's fourth largest defense investor, behind the US ($854 billion), China ($336 billion), and Russia ’ ($190 billion).

The Bundeswehr ‘ will be ’'s most powerful conventional armed force.

EuroDefense Germany President Colonel (retired) Ralph Thiele told Europe in Motion’a that with a package of 153 major projects underway, Germany’ aims to acquire new weapon systems, modernize its equipment, strengthen its infrastructure and cybersecurity.

Germany’'s armed forces, the Bundeswehr, are fortifying their infantry brigades with more Puma combat vehicles and ordering billions of euros for the 237 Infanterist der Zukunft system by 2029.

This is a modular, integrated combat system designed to provide infantry with significant lethality, survival, mobility, combat command and training.

German Bundeswehr soldiers stand next to a German army armored military vehicle during a joint German-Lithuanian exercise near Vilnius, May 29, 2024

He said the military was also focused on closing air defense gaps, making significant investments in guided missile systems, as well as plans to purchase 20 new Eurofighters, as well as Skyranger 30 anti-aircraft gun tanks of up to 600’e, and placing large orders for “Patriot, IRST and Meteor.

The navy is also preparing to expand with plans to supply up to 42“ manned ships integrated with the ” 50 unmanned system, including ’new corvettes and submarines.

Thiele said that with investments in spy satellites, space planes and laser-based defense systems in space, “More strategic priorities lie in military space programs.

He announced that these investments would turn the German army into “, ’'s most powerful conventional armed force.

What other countries are increasing their military spending?

Another major economy that has not retreated %Italy is ’ with an increase of 20’; Currently, Israel stands at the head of ’le (41 billion euros) in military spending.

Spain, where NATO’ is underperforming as usual, %Going further with an increase of 50’, the alliance's former GDP for the first time since the beginning of the 90’s %2’si has reached his goal.

Who spends the most GDP compared to ’?

Looking at the share of defense spending in GDP provides a clearer picture of who is considering defense as a national priority.

Ukraine (Estimated %with 40), Algeria %While it is the world leader with a significant ratio of 8.8, all the top countries in Europe ’ are neighbors with Russia.

Poland, GDP’ %It ranks first by splitting 4.5’ini into weapons and defense infrastructure.

Republic of Latvia %It came in second with 3.6, while Estonia (%3,4) and Norway (%3.3, followed by Iceland (almost %0) and Ireland (%0,2 and Switzerland (%0.8) is at the bottom of the ranking.

Among the continent's five largest economies, and despite a slight decline in military spending in 2025’te, the United Kingdom %It continues to be the largest investor with 2.4, making it Germany's (%2,3, from Spain (%2,1, from France (%2) and Italy (%1,9 is followed.

How does the war in ’ affect military spending?

the U.S., a noticeable decrease in total spending (%-7.5), which was due to the fact that a new financial military aid to ’ was not approved in 2025’te Ukraine. This was in stark contrast to the previous three years, when a total of $127 billion was signed for Kiev.

Washington is still among the 15 most-spending countries in the world's total defense spending. Constitutes ’; the Chinese () and Russia (%6.6) is followed.

SIPRI, “Despite ongoing economic pressures and sanctions, Russia has so far managed to increase its military spending on an annual basis since 2022’, despite changing procurement and operational strategies, said ”.

"As the occupation of “ has increasingly turned into a war of attrition, Russia has turned to supplying higher quantities of cheaper weapon systems in order to limit operational costs," the statement said.

Deutsche Bank, Santander and UBS’'s profits rise due to market impact of Iran war

Europe’'s biggest banks and an oil giant reported generally optimistic first-quarter results on Wednesday, despite executives pointing to the growing uncertainty stemming from the Middle East conflict and its ripple effects on energy prices, consumer confidence and European interest rates.

Leading European ​​banks saw a short-term increase in their performance as commercial revenues benefited from fluctuations linked to the Iranian conflict, despite increased long-term macroeconomic risks.

GermanyDeutsche Bank, ’'s largest lender %A record post-tax profit of €2.2 billion every three months with an increase of 8, while pre-tax profit %7 increase to 3 billion Euro’. Pre-tax profit of the private bank division %It increased by 39 to 681 million Euro’.

The Net Income %2 increases to 8.7 billion Euro’.

The assets under management rose to 1.8 trillion Euro’, supported by a net entry of 22 billion Euro’ in private banks and asset management units.

Chief Executive Officer Christian Sewing said: “The record profit of this quarter gives us a great start to the next phase of our strategy.​​

“We have the balance sheet strength, capabilities and strategic location to serve our customers worldwide in a dynamic environment, ” added.

CFO Raja Akram pointed out that artificial intelligence and process restructuring are key drivers of cost resilience, adding that the investment bank serves as a valuable advisor to customers in a “zorian macroeconomic environment.

At the same time, credit losses equivalents, with the bank pointing to a macroeconomic indicator reflecting a broader uncertainty %It increased by 10 to 519 million Euro’.

The results came at a time of heightened economic and geopolitical uncertainty. The Middle East conflict, which erupted at the end of February, triggered eurozone inflation in March. %raised 2,5’e and for the first time in years, the European Central Bank strengthened expectations for ’'s interest rate hike; This shift supports net interest margins in the near term, but increases long-term credit risk due to the reflection of energy costs on households and companies.

Deutsche Bank has maintained its all-year revenue target of around €33 billion and said a €1 billion repurchase is on the way. Following the update, the shares of Avrupa’da are approx. %3 is down.

Banco Santander: Spanish banking giant announces impressive results

Banco Santander, the largest lender by market capitalization of ’, also reported record results; attributable profit, influenced by earnings of €1.9 billion from the sale of Santander Bank Polska’ %€5.5 billion increased to €’, up 60 percent.

When this one-time subtracted, the base profit is approx. increased to 3.6 billion Euro’. Income, net interest income and wages %6With the effect of ’ increase %4 increase to 15.1 billion Euro’.

The costs are %The efficiency increased by 3 drops. Santander, medium single-digit income growth and ,8-%He said he is on track to achieve his goals all year, including a CET1 rate of 13’.

Rate of capital .4’e rose and provided enough buffer to absorb potential stress.

The bank also continued its shareholder returns with a repurchase target of 5 billion Euro’ and a repurchase target of at least 10 billion Euro’ in 2025-26’.

According to the results of 2025, the total wage paid to shareholders is around 7.1 billion euros, which is roughly equivalent to the attributable profit. %It is equivalent to 50’.

A warning came from the Openbank section of Santander’; Fundamental profit here fell to 290 million Euro’; This was hit by a €207 million response to potential engine financing complaints at ’ in the United Kingdom and the end of tax incentives for electric vehicles at ’ in the United States.

If the bank excludes this provision, the pre-tax profit %He said it would go up by 15.

UBS Increases Profit by 80%

Influenced by UBS, asset management and commercial power, %It reported an increase of 80 to $3.04 billion.

Revenue increased to CHF 13.6 billion’ye (EUR 14.7 billion), while profit before basic tax %It's up 54.

The bank confirmed its $3 billion buyback program, which is expected to be completed by the end of the second quarter, and said that the CET1 rate %He reported 13.8.

The economic impact of the conflict in ’, Iran, will continue to be manageable if it is short-lived, but the duration is a significant risk, the executives said.

The European Central Bank warned that the war triggered a downward revision in its outlook for short-term growth, as energy price shocks and rising uncertainty would likely negatively affect purchasing power and business confidence, while also increasing financing costs for banks and firms through bond spreads and stock prices.

For now, bank earnings seem resilient, but as the macro chart evolves, analysts are closely monitoring credit quality.

TotalEnergies’ net income %Increased by 51

TotalEnergies, a French multinational oil company, has announced that its net income will be supported by strong oil and gas prices and tightening global markets. %It reported an increase of 51 to $5.8 billion (4.95 billion euros).

Quilter Cheviot’tan Maurizio Carulli, “TotalEnergies, published a strong first quarter results above expectations” said and added: “Strong organic production growth is helping to offset losses due to ongoing conflict in the Middle East’.”

Production on an annual basis approx. %4 is increased; A similar growth is expected in the second quarter, excluding disruptions.

The company is at the peak of expectations for the second quarter of 2026’ %It announced a 5.9-dividend increase and a $1.5 billion share buyback.

Gas markets remain tight as oil prices expect to remain high in the second quarter due to a delay in production restarts; European prices stand at $14-15 per MMBtu due to low storage and LNG competition between Europe and Asia.

German automotive outlier value

At the same time, the German car manufacturer Mercedes-Benz also announced its first quarter profit. Automobile manufacturer in operating profit in the first quarter ’ in a sharp decline of 1.9 billion Euro’ya, while in revenue %It reported a decline of 4.9 to 31.6 billion Euro’.

Adjusted operating margin in the automobile division from the previous year %from 7.3’ten %4.1’e has declined and net profit is also declined to 1.43 billion Euro’.

German automaker in sales in China’, where lower-cost local competitors such as BYD and Nio are moving towards the premium segment %In addition to a collapse of 27’, the US is being squeezed in many ways, including ’'s tariff pressure and the costly transition to electric vehicles.

Despite the decline, the figures exceeded analysts' expectations of operating profit of €1.6 billion, with shares trading in pre-market transactions %It increased by 2.2 percent.

CFO Harald Wilhelm said that the company's all-year group EBIT ’ is on track to become ’, significantly above last year's result of €5.8 billion “, pointing to healthy order books and 40 new models planned between 2025 and 2027; These include the all-electric CLA sedan and the revamped S-Class series.

Mercedes also marked the conflict in the Middle East’ as a risk to consumer confidence; This is a widely shared concern in the European industry.

The U.S. and Azerbaijan started to implement important projects after the Trump peace agreement

As Washington seeks to transform its new strategic partnership with Azerbaijan’ into concrete infrastructure projects, a US ’ technical delegation in Baku’ has concluded talks on Trump’'s International Peace and Prosperity Route (TRIPP) corridor.

The U.S. Agency for Trade and Development (USTDA) wrapped up the visit on Wednesday and announced that its goal is to advance ’'s shared strategic infrastructure priorities between the two countries, which are part of the U.S.-Azerbaijan Strategic Partnership Charter, signed during Vice-President J.D. Vance’'s visit to Baku’ in February.

Sara Leming, USTDA’'s country manager for Europe and Eurasia’, told euronews’e that the strategic geographical location of “Azerbaijan’ makes it an indispensable hub on the Trans-Caspian Transit Route connecting Central Asia’ to West’.” said.

The “ Trump Route for International Peace and Prosperity will make this corridor even more important. Regional connectivity is a key area for cooperation under our Strategic Partnership Charter and is something USTDA’ explores during these missions.”

Washington’'s infrastructure move

TRIPP is a 42-kilometer railway and road corridor that passes through the territory of Armenia, mediated by US President Donald Trump’, as part of the peace declaration signed between Armenia and Azerbaijan in August 2025’te White House’.

China and Central Asia, also known as the Trans-Caspian International Transport Route, form the South Caucasus link in the wider Central Corridor connecting ’ to Europe’ via Azerbaijan, Georgia and Turkey.

USTDA said it is researching projects with Azerbaijani colleagues on liquefied natural gas, civil nuclear energy, electricity transmission, artificial intelligence infrastructure, cyber security and digital connectivity; “Azerbaijan stated that ’ supports long-term energy security while ” develops its economic and strategic interests.

Leming said the agency aims to move early-stage infrastructure concepts forward through feasibility studies, technical assistance and pilot programs designed to attract private capital.

“AzerbaijanWe see real opportunities in ’, ” said.

Speaking to Euronews’e, Leming said that since “ Vice President Vance and President Aliyev signed the Charter ’ in February, the US government has been working with our Azerbaijani partners to fully implement this historic agreement to the benefit of both our countries through concrete projects and programs such as those offered by USTDA. ” said.

Both Azerbaijan and Armenia are working on reshaping the East-West energy and logistics flows of Washington’ and developing the transit route that Europe’ sees as central to reducing its dependence on traditional supply routes.

Energy security role

Azerbaijan’'s position in the heart of the newly emerging TRIPP corridor is no coincidence; The country has spent two decades building its pipeline infrastructure, which now makes it one of Europe’'s most strategically important energy partners.

The Baku-Tbilisi-Ceyhan (BTC) pipeline and the Southern Gas Corridor (SGC) connect Caspian ’'s energy sources directly to Turkey and Europe ’ by bypassing both the Russian ’ and the Strait of Hormuz ’.

BTC, which connects Caspian, Black Sea and Mediterranean ’, has a capacity of about 1.2 million barrels per day and strengthened its role as a regional diversification tool by transporting crude oil from Azerbaijan’ as well as Kazakhstan and Turkmenistan’.

According to the State Statistics Committee of Azerbaijan, the country has proven reserves of about 7 billion barrels of oil and 2.6 trillion cubic meters of natural gas.

In 2025, it produced more than 27 million tons of crude oil and 51.5 billion cubic meters of gas, more than triple 2007 gas production. Azerbaijan currently exports oil to about 30 countries and gas to 16 countries, including 10’u EU member states.

Southern Gas Corridor and Europe

AB’'s gas import dependency is now %With its exceeding 85’i, the SGC became the main pillar of European supply security and opened the bloc's fourth gas supply corridor, with Azerbaijani gas reaching Europe’ for the first time through the Trans Adriatic Pipeline (TAP) in 2020’.

2025’te delivered approximately 13 billion cubic meters of gas to European markets; this is approx. compared to 2021’e more.

According to Azerbaijani figures, 267 billion cubic meters of gas and more than 52 million tons of condensate have been produced so far in the Shah Deniz field, which is the main source of supply for the corridor.

Following the strategic partnership agreement signed by the EU and Azerbaijan, 2022’de Bucharest’te Azerbaijan, Georgia, Romania and Hungary, Europe is also developing three green energy corridors to bring renewable electricity to ’.

Corridors covering the Caspian-Black Sea-Europe route, the Azerbaijan-Turkey-Europe route and the Central Asia-Azerbaijan-Europe connection are designed to enable large-scale electricity trade from renewable sources.

AB’'s parallel move

On Wednesday, as the USTDA delegation completed its visit to Baku, EU foreign policy chief Kaja Kallas was in Luxembourg’, where she told foreign ministers that Azerbaijan’ remains an important partner in “energy and connectivity issues.

At a press conference ahead of the Foreign Affairs Council meeting, “ said that we want to deepen our ties and will continue negotiations on a new bilateral cooperation agreement soon.

Ministers emphasized that the European ’ has a strategic interest in a stable and secure South Caucasus ’, while Kallas said that the Armenia-Azerbaijan normalization process is “ extremely important for the EU.

He completed his words as follows: “ Progress in the Armenia-Azerbaijan peace process is a real opportunity for the region and significantly increases EU support.”