Iran strike

WASHINGTON — The U.S. House voted overwhelmingly Tuesday to set aside an effort to impeach President Trump on a sole charge of abuse of power after he launched military strikes on Iran without first seeking authorization from Congress.

The sudden action forced by a lone Democrat, Rep. Al Green of Texas, brought little debate and split his party. Most Democrats joined the Republican majority to table the measure for now. But dozens of Democrats backed Green’s effort. The tally was 344 to 79.

“I take no delight in what I’m doing,” Green said before the vote.

“I do this because no one person should have the power to take over 300 million people to war without consulting with the Congress of the United States of America,” he said. “I do this because I understand that the Constitution is going to be meaningful or it’s going to be meaningless.”

The effort, while not the first rumblings of actions to impeach Trump since he started his second term in January, shows the unease many Democrats have with his administration, particularly after the sudden attack on Iran’s nuclear sites, a risky incursion into Middle East affairs.

Trump earlier Tuesday lashed out in vulgar terms against another Democrat, Rep. Alexandria Ocasio-Cortez of New York, for having suggested his military action against Iran was an impeachable offense.

House Democratic leadership was careful to not directly criticize Green, but also made clear that their focus was on other issues. Impeachment matters are typically considered a vote of conscience, without pressure from leadership to vote a certain way.

Rep. Pete Aguilar (D-Redlands), chair of the House Democratic caucus, said lawmakers will “represent their constituents and their communities.”

“At this time, at this moment, we are focusing on what this big, ugly bill is going to do,” he said about the big Trump tax breaks package making its way through Congress. “I think anything outside of that is a distraction because this is the most important thing that we can focus on.”

Trump was twice impeached by House Democrats during his first term, in 2019 over withholding funds to Ukraine as it faced military aggression from Russia, and in 2021 on the charge of inciting an insurrection after the Jan. 6 attack on the Capitol by his supporters trying to stop Democrat Joe Biden’s presidential election victory.

In both of those impeachment cases, the Senate acquitted Trump of charges, allowing his return to the presidency this year.

Green, who had filed earlier articles of impeachment against the president this year, has been a consistent voice speaking out against Trump’s actions, which he warns is America’s slide toward authoritarianism.

The congressman told the AP earlier in the day that he wanted to force the vote to show that at least one member of Congress was watching the president’s action and working to keep the White House in check.

Mascaro and Freking write for the Associated Press. AP writer Joey Cappelletti contributed to this report.

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European equities tumbled when the market opened on Friday and oil prices surged, as investors reacted to Israel’s large-scale air strikes on Iran’s nuclear infrastructure, fuelling fears of a broader Middle East conflict.

The operation, named Rising Lion, marks the most extensive Israeli military action on Iranian soil to date, targeting over 100 facilities including the Natanz complex and missile sites near Tehran.

As of 9.15am CEST, the Euro STOXX 50 had dropped 1.5%, extending weekly losses to 2.7% — the worst performance since early April.

Financials led the downturn among Eurozone blue chips. Deutsche Bank fell 2.73%, UniCredit 2.56%, Banco Bilbao Vizcaya Argentaria 2.48% and Banco Santander 2.46%.

Germany’s DAX lost 1.34% to 23,453, France’s CAC 40 dropped 1.35% to 7,660, Italy’s FTSE MIB retreated 1.68% to 39,271, and Spain’s IBEX 35 fell 1.70% to 13,849.

Oil prices surged following the Israeli strike, as markets began to price in a higher geopolitical risk premium. Brent crude jumped over 5% to trade at $73 (€68) per barrel, while West Texas Intermediate rose to $71.5 (€66.60). For the week, oil prices are up more than 10%, on track for the strongest weekly gain since October 2022.

As energy prices rallied, oil majors such as Italy’s Eni and Spain’s Repsol gained 2%.

German defence powerhouse Rheinmetall also rose 2% as investors turned to military and security-exposed stocks.

Dutch TTF natural gas futures climbed 2% to €37.12 per megawatt hour, amid concerns over potential disruptions to energy flows.

The Israeli campaign involved over 200 fighter jets, according to the IDF, and reportedly resulted in the death of senior Islamic Revolutionary Guard Corps commanders Hossein Salami and Mohammad Bagheri.

Gold eyes new record, dollar rebounds

Demand for safe-haven assets surged. Gold rose 1% to $3,430 (€3,200) per ounce, nearing its all-time high of $3,500. Silver also held ground, hitting $36.5 per ounce overnight.

The dollar gained strength following days of steady declines. The euro fell 0.5% to $1.1540 after touching a three-year high of 1.16 on Thursday. On the data front, Germany’s final inflation reading for May was confirmed at 2.1% year-over-year. Spain’s annual inflation was upwardly revised from 1.9% to 2%.

The pound also slipped 0.5% to $1.1350.

The Israeli shekel tumbled 1.8% against the dollar, heading for its steepest daily loss since the Hamas attack of October 2023.

Analysts see upside risks for oil prices

“The Israeli strike on Iran’s nuclear facilities has sent oil prices spiking and has offered the oversold and undervalued dollar a catalyst for a rebound,” said Francesco Pesole, currency strategist at ING.

While there are currently no confirmed disruptions to oil production, analysts warn that the situation could escalate rapidly.

“The key difference from previous standoffs is that nuclear facilities have now been targeted,” Pesole added.

Warren Patterson, head of commodities research at ING, noted: “In a scenario where we see continued escalation, there’s the potential for disruptions to shipping through the Strait of Hormuz. Almost a third of global seaborne oil trade moves through that route.”

He warned that up to 14 million barrels per day could be at risk, with oil potentially surging to $120 per barrel in the event of a prolonged disruption — levels not seen since 2008.