EU's Kallas on War in Iran, Ukraine, Opening Hormuz

Watch on YouTube ↗  |  March 26, 2026 at 17:14  |  6:58  |  Bloomberg Markets

Summary

  • The European priority is finding a diplomatic "off-ramp" to end the war in Iran to prevent further global economic consequences and escalation.
  • There is active discussion about forming a "coalition of the willing" to keep the Strait of Hormuz open, potentially by strengthening the existing EU naval mission with more vessels.
  • The mandate of the current EU naval mission (likely Operation ASPIDES) does not currently include the Strait of Hormuz/Persian Gulf, and foreign ministers have so far been unwilling to change it.
  • The wars in Iran and Ukraine are explicitly linked, with Russia providing drones and intelligence to Iran, which should logically lead to increased U.S. pressure on Russia.
  • A critical €90 billion EU loan for Ukraine is blocked, threatening a "financing cliff" and damaging European credibility; work is ongoing on "plan Bs."
  • If the €90 billion loan cannot be delivered, the fallback "plan A" is to use frozen Russian assets to fund Ukraine.
  • There is concern that weapons or funding intended for Ukraine could be diverted to the Middle East conflict, though the speaker claims no specific awareness of this happening.
  • The speaker condemns the alleged leaking of EU meeting details to the Kremlin by the Hungarian foreign minister as inappropriate and a breach of professional secrecy, prompting a review of procedural rules.
Trade Ideas
Kaja Kallas High Representative of the EU for Foreign Affairs and Security Policy 2:43
The speaker states discussions with the Saudi foreign minister included the clear risks the Iran war poses "for the oil market, what does it mean for gas?" An ongoing war in a critical geostrategic region (Iran) directly threatens the production and transportation of oil and gas, creating supply uncertainty and price volatility. The urgent diplomatic efforts to find an "off-ramp" are driven by tangible risks to energy markets. The situation warrants close monitoring (WATCH) for potential supply disruptions or price spikes. A swift diplomatic resolution could alleviate pressure, while escalation could trigger a major supply shock.
Kaja Kallas High Representative of the EU for Foreign Affairs and Security Policy 2:43
The speaker explicitly lists "fertilizers, everything" as being at risk due to the consequences of the Iran war. Fertilizer production is energy-intensive (linked to gas) and relies on stable supply chains. Regional conflict disrupts both input costs and logistics, impacting global agricultural inputs. The war poses a clear and direct risk to the fertilizer industry, mentioned alongside oil and gas. This creates uncertainty for companies in this sector, making it an area to WATCH closely. Similar to energy, a diplomatic solution would reduce the immediate threat, while prolonged conflict exacerbates supply chain and cost issues.
Up Next

This Bloomberg Markets video, published March 26, 2026, features Kaja Kallas discussing XLE, DBA. 2 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Kaja Kallas  · Tickers: XLE, DBA