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00:30Iran's Revolutionary Guards now say they've struck a Liberia-flagged vessel they claim is Israeli-owned.
00:36Iran had promised to only target ships linked to the U.S. or Israel,
00:41but another Thai carrier was also struck in the Strait of Hormuz.
00:45The Israeli military, meanwhile, says it has identified missiles launched from Iran towards Israel
00:49and that air defence systems are working to intercept them.
00:53This while thousands continue to flee southern Lebanon,
00:55and the International Energy Agency says its member countries could release up to 400 million barrels of oil
01:01from their reserves to ease the impact of the war.
01:04And French President Emmanuel Macron has said Iran's military capabilities had been weakened,
01:09but not, quote, reduced to zero by U.S. and Israeli strikes.
01:13He made the comments after a meeting with G7 leaders, including President Donald Trump.
01:17For more on that G7 meeting, we can head straight to Paris
01:21and bring in your news's France correspondent, Sophia Katsenkova,
01:24who's outside the Élysée Palace for us this morning.
01:27Good morning, Sophia.
01:28Look, France is pushing here for a coordinated response to the energy shock caused by the war in the Middle
01:33East.
01:33But what exactly can President Macron do?
01:37Well, speaking after the talk with leaders of the G7, which France currently chairs,
01:44French President Emmanuel Macron confirmed that countries had agreed to release 400 million barrels
01:52from strategic oil reserves.
01:54The move is designed to calm market prices as the conflict threatens shipping through the Strait of Hormuz,
02:02which is one of the world's most critical oil routes, which handles about a fifth of a global supply.
02:08Macron said that the release would be equivalent to roughly 20 days of oil normally transiting through the Strait of
02:17Hormuz.
02:17But the French leader also insisted that the current energy shock should not change policy towards Moscow,
02:25despite the pressure on global oil markets.
02:29Let's take a listen.
02:29This situation is in no way justifying lifting the existing sanctions against Russia, which should continue.
02:39This situation should obviously not reduce our attention to Ukraine,
02:43our support for Ukraine, and the clarity we have regarding sanctions against Russia.
02:51So these comments come as U.S. President Donald Trump suggested earlier this week that some oil sanctions could potentially
03:00be lifted
03:01to ease pressure on markets, though he did not specify whether that would apply to Russia.
03:08And that's why Macron kept insisting yesterday that the war in the Middle East must not overshadow what's happening in
03:16Ukraine,
03:17where Russia's full-scale invasion has entered its fifth year.
03:22The French president is due to host his Ukrainian counterpart, Volodymyr Zelensky, in Paris tomorrow,
03:28where the two leaders are expected to discuss ways to increase pressure on Russia.
03:34Back to you, Brussels.
03:36Indeed, and we'll likely come back to you tomorrow for an update on that very important meeting.
03:39Sofia Katsenkova, thank you so much for that live broadcast there from Paris.
03:44Now, back in Brussels, there is major concern over the potential shocks this war could have on the European economy,
03:50from high inflation to low growth.
03:52The EU Commission is mulling next steps.
03:54For more, very shortly, we'll be joined here by the European Commissioner for the Economy, Valdez Dombrowski.
03:59But first, let's bring in Eurion News' EU editor, Maria Tadeo, for some more context.
04:03Maria, good morning.
04:04What is at stake here for the European economy?
04:06Good morning.
04:06So it's very much the scenario of stagflation that you allude to,
04:09one in which obviously growth is impacted, and then you see inflation pick up,
04:14mostly because of the energy story that is playing out around the Strait of Hormuz,
04:18but also the Gulf countries, where they're not just producers of oil,
04:22but they're also key in the transportation.
04:24Yesterday, we saw this emergency release of strategic reserves of oil to the tune of 400 million barrels.
04:31Obviously, the idea is that this is going to ease some of the price pressure,
04:34but of course, as long as the war continues, there is a big question mark
04:38as to whether you can stabilize a market so volatile with such uncertainty playing out on the ground.
04:45And Maeve, to that point, indeed, we are now joined by the Commissioner for the Economy,
04:49Valdez Dombrowski, who joins us here in the studio.
04:52Good morning.
04:53Good morning. Commissioner, just a very simple question.
04:56How bad is it going to get for Europe?
04:59Well, the economic impact of current crisis in the Middle East, to a large extent,
05:04will depend on how long the conflict will continue, how wide it will spread.
05:11So in a sense, if we manage to achieve a quick escalation, the impact may be limited.
05:17If it gets protracted and correspondingly both with disruptions for oil shipping and oil and gas production,
05:27that indeed, as you mentioned, can create a stagflationary shock for the European economy,
05:33where due to the elevated energy prices, it peaks in a broader inflation and also negatively affects growth
05:42through confidence effects, through disruptions in supply chains, and through tighter financing conditions.
05:48So then what are you going to do as a Commission?
05:50Because we see the capital saying the European industry cannot deal with another energy shock.
05:55We need measures.
05:56And the Commission is going back to the member states saying cut taxes on things like electricity.
06:00So what's going to happen in the short term, in specific terms?
06:02Well, in the short term, as you already mentioned, it's a question of releasing the oil reserves, which we have,
06:09which can add substantial volumes to the market and which are meant exactly for situations like this,
06:15where we are facing disruptions.
06:18But the market did not take that as a positive. Oil prices still went up.
06:22Well, there we must see what are the reasons for this.
06:27First, we see that oil prices are very volatile.
06:29Second, Iran was hitting a major oil storage in Oman.
06:34It basically continues to target energy infrastructure in neighboring countries.
06:39So this volatility is certainly linked with this.
06:43And those oil reserves volumes have not reached the market yet.
06:48And do you believe, and you've dealt with the U.S. administration many years now,
06:52do they have a plan? Because I'm confused.
06:54Is this a war or just an excursion?
06:56I listen to President Trump. I hear 20 different things a day.
06:59Well, I cannot tell this for on behalf of U.S. administration.
07:05But what's your impression?
07:06Also, there were no prior consultations with the EU before taking those steps.
07:11But what's important right now is to work towards quick descalation of the conflict.
07:17And from the EU side, we are also engaged with the countries of the region aiming for that.
07:22And let's talk about Ukraine, because obviously you are very supportive of Ukraine.
07:25I think everyone knows this by now. There's a loan of 90 billion euros that is blocked by Hungary.
07:30There is no indication that the president or the prime minister of Hungary is going to botch.
07:35And at the time in December, we were told that if Ukraine didn't get the money by April, they would
07:39collapse.
07:39April is around the corner. So what's going to happen?
07:41Well, first of all, in between, we have finalized legislative work on a number of things.
07:49We are also amendments to Ukrainian authorities on all the documents which are necessary, like memorandum of understanding, financing, strategy.
08:01The man is Orban, but it comes down to Orban. How do you deal with Orban?
08:03Basically, the missing element is amendments to the multi-annual financial framework, which would allow the commission actually to go
08:13to the market and borrow.
08:15And this, indeed, we need by April. And we continue this strong engagement.
08:20There was commitment from all 27 member states to do those amendments to our multi-annual financial framework.
08:30But do you have to wait until the Hungarian election? Is this now ultimately the elephant in the room, whether
08:34he gets elected or not?
08:36Well, it has been said before that we will ensure the support one way or another.
08:42With or without Hungary?
08:43We expect, obviously, Hungary to honor its commitments, which also Prime Minister Orban took in December last year.
08:50And it's worth reminding that Hungary is not even paying for that support.
08:54OK, well, Commissioner, thank you very much, of course, for joining us on Euronews this morning.
08:58Thank you so much. Now, thank you so much as well, Maria, today for that.
09:01Now, moving on, as global instability continues, the Strait of Hormuz, of course, has become in the eye of the
09:09storm.
09:09But it's actually not the first time it's in the eye of the geopolitical storm, as our Jakobianus reports.
09:16The narrow Strait of Hormuz, despite being a waterway, is starting to become a literal geopolitical landmine.
09:23A fifth of the world's oil flows here.
09:26For Washington, any disruption means higher petrol prices and food inflation.
09:31A nightmare for the upcoming midterms.
09:34And for Iran, the waterway is their ultimate leverage.
09:38Tehran has vowed not to allow even a single liter of oil reach its enemies.
09:43And in response, the U.S. says it has destroyed 16 Iranian mine-laying vessels.
09:49But hey, we've been here already, so who's up for a history lesson?
09:54Mines are the poor man's weapon of naval warfare.
09:58They are dangerously cheap.
09:59And basic contact mines can cost as little as a few thousand dollars.
10:04Yet, they can disable a billion-dollar warship or a supertanker just in seconds.
10:09And during the 1980s Iran-Iraq war, specifically the tanker war, Iran filled the same waters with mines to halt
10:19Iraqi exports.
10:21And in 1988, after a U.S. frigate was nearly sunk by an Iranian mine, the Ronald Reagan administration responded
10:29firmly, launching Operation Praying Mantis.
10:31Historians say that in a single day, the U.S. Navy dealt a devastating blow to Iranians' operational fleet.
10:39The message was clear.
10:41Mess with the oil, and you will lose your navy.
10:45Because of disruptions in the straits, Iraq, which relies on oil for 90% of its revenue,
10:51is now desperately exploring alternative routes through Syria, Jordan, and Turkey.
10:56And for Europe, this crisis proves that swapping Russian oil for Gulf crude meant simply trading one dependency for another.
11:05So maybe it would signal a revival of decentralized green energy.
11:09After all, if the climate argument becomes too polarizing, it could be now about military and energy sovereignty.
11:21Yeah, Kupianis reporting for us there.
11:23And as global instability continues to worsen, particularly in Iran and the rest of the Gulf,
11:28NATO has been carrying out military exercises in the high north and in Norway, known as cold response.
11:34It involves 14 NATO countries.
11:36And for more, Euronews correspondent Shona Murray joins us now from Norway.
11:39Well, good morning, Maeve.
11:41We're here in the Arctic covering NATO's cold response military exercise,
11:45which is part of the Arctic Sentry military exercise, which was agreed amongst allies back in January
11:51to deal with the political chaos that ensued at NATO when Donald Trump said he wanted to take over Greenland.
11:57We're stationed at a Norwegian coastal corvette, which is the fastest military vessel in the world.
12:02And all around us, we have military personnel who are taking part in this exercise.
12:07There's around 25,000 soldiers from the United States, from all across NATO alliance.
12:12But what we heard in the last few days is at least one squadron of U.S. Marine F-35s
12:18have been redirected from this exercise to the Middle East to deal with the conflict that is ongoing there.
12:23Now, NATO is not a party to that conflict.
12:25But in the last week, Turkey has had to intercept two ballistic missiles coming from Iran.
12:31So there are concerns in NATO that NATO could get dragged into the situation.
12:35In response, NATO has delivered patriot defense systems to the southern part of Turkey
12:40and also has heightened its defense posture, saying that they will defend the whole of the territory.
12:46But I caught up with a commander from the Norwegian Air Force.
12:49And I asked him about NATO's readiness and capabilities, both in the theater of the Arctic and in the Middle
12:55East.
12:56Well, we need to be prepared for war.
12:59So every day, every day, we are making sure that we are taking the right decision.
13:05So this base will be prepared for war.
13:07And one thing is if the war comes, we will fight it.
13:11The other thing is if we are prepared enough, we want Putin to wake up in the morning
13:17and say that maybe NATO is too prepared for a war today.
13:21So we need to we need to postpone that.
13:24We've seen in the past week ballistic missiles entering its Turkish airspace.
13:28I mean, what do you say?
13:29How do you think that situation can escalate in relation to NATO?
13:32Well, I don't think I want to go into details about the world situation.
13:37But I can say that if Article 5 is in effect, then Norway is also in war, even though the
13:46attack is somewhere else.
13:51Shona Murray reporting for us there.
13:53Now moving on in other news.
13:55Ukraine is seeking support from the European Union to get their money and valuables back from the Hungarian government.
14:01Last week, Prime Minister Viktor Orban seized cash and gold from a Ukrainian bank amid an ongoing tax authority investigation.
14:08Your news is Ukraine correspondent Sasha Vakalina is across this serious spat between Kyiv and Budapest and joins me now
14:15here on set.
14:16Sasha, so we understand the stuff have been released.
14:18But what about the valuables?
14:19Indeed, the stuff have been released after 28 hours being detained in Hungary and being interrogated in Hungary.
14:26But the valuables, the gold and the money and the shipment in total worth something like $82 million remains in
14:33Hungary.
14:33And it's been exactly one week since now.
14:36This shipment was going from Austria to Ukraine by Hungary by road.
14:40The reason it was going by road is because, of course, the airspace in Ukraine remains closed for over four
14:44years since Russia's full-scale invasion of Ukraine.
14:47And Ukraine's state-owned Oshchad Bank and also the National Bank of Ukraine are now trying to bring back that
14:54shipment of the cash and the gold back to Ukraine, Maeve.
14:58Okay, Sasha Vakalina, thank you so much for that.
15:00And actually, for the view from Ukraine, we can now cross over to Kyiv and speak to Sergei Nikolakchuk,
15:05first Deputy Governor from the National Bank of Ukraine.
15:09Good morning, Sergei.
15:09Thank you so much for joining us here on Europe Today on Euronews.
15:13So we understand the Commission has received your official letter.
15:16Have you gotten a response yet?
15:24For European partners to ensure that this incident does not remain without an appropriate response,
15:31our requests will be addressed to the EU High Representative for Foreign Affairs and Security Policy,
15:40the leadership of European Commission, Directorate General for FISMA, European Central Bank, Austrian National Bank.
15:48And at this stage, we are still awaiting for formal replies from our counterparts.
15:56And what kind of support does Kyiv want and expect from Brussels here?
16:01Well, we expect an impartial and transparent review of this case with clear conclusions that would demonstrate in practice that
16:12European Union's commitment to the rule of law.
16:17It is important that the European Commission and other relevant EU institutions have full access to all necessary information and
16:26documentation
16:27in order to provide their own independent assessment of the actions taken by the Hungarian side.
16:34From our side, we are standing ready to provide any information required to cooperate fully with the European partners.
16:42And tell us about the direct contact between Kyiv and Budapest.
16:46How is that going here?
16:48The communication with the Hungarian side is being handled by our Ministry of Foreign Affairs,
16:56which is leading the efforts to resolve the situation through diplomatic channels.
17:00Also, Oshad Bank, together with its legal advisors, is working to clarify all circumstances of the case
17:10and remains in contact with the Hungarian authorities with the aim of resolving the issue of the cargo
17:16and as well as ensuring the protection of the rights that is the interest of the financial institutions and its
17:23employees.
17:24From the NBU side, from the NBU, we facilitate all these efforts.
17:30And just on that point of clarification, how routine is this kind of cash and property transport to other countries?
17:37Well, that is the regular and common practice to transport cash from Austrian,
17:45from Austrian Raiffeisen Bank to Ukraine by Oshad Bank and many other countries.
17:53Actually, yes.
17:55So, we reviewed and we may confirm that the cargo has been properly documented.
18:02We see no irregularities in the practice of international transportation of cash between banks.
18:09And actually, it is also important to note that Raiffeisen Bank International,
18:15which is one of the main suppliers of a fixed cash to Ukrainian banks,
18:20confirmed in its statement that it had provided the relevant authorities with all required documentation
18:26related to these cash management operations.
18:29So, how would you describe the whole case?
18:31Do you consider it a confiscation?
18:34Well, from our point of view, the actions taken by the Hungarian authorities raise serious concerns
18:40and suggest that this case goes beyond purely procedural or security related issues.
18:47From the very beginning, the sequence of events has indicated that the situation has a political dimension
18:53rather than being a standard legal or regulatory matter.
18:58So, the facts speak for themselves.
19:03Okay, Sergei Nikolai-Tuk, thank you so much for joining us here this morning on Europe Today on Euronews.
19:08For more, of course, on that story and on that ongoing investigation,
19:11do take a look at Sascha Vakalina's reporting and, of course, Sander Zeros, our Hungarian reporter,
19:16his reporting as well on Euronews.com.
19:18But that does bring this edition of Europe Today to an end.
19:21Thank you so much for your company.
19:23As always, we'll be back, of course, tomorrow, Friday, bright and early here on Euronews
19:27with the fresh edition of Europe Today.
19:28Don't miss it.
20:00We'll be back.
20:01We'll be back to zusammen.
20:01See you next time.uli
20:01be back. I'll
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