Middle East & North Africa

As tensions mounted between the United States and Iran, European nations pressed for a calm response, fearing that any escalation could disrupt trade through the region’s vital Strait of Hormuz, which carries up to a third of global crude oil exports traded via ships. If the strait is blocked or trade there is disrupted by conflict, analysts predict oil prices would surge.

Unlike the Iraq war of 2003 when Europe was split in its support of the US, all of Europe now disagrees with the American approach to Iran. If the US were to use military force, there would be no European support and the sad likelihood of unifying Europe on an anti-American basis.

Just two weeks ago, a tweet cost the global stock markets roughly $1.36 trillion (or Australia’s annual GDP). With 280 characters on Twitter, the U.S. President Donald Trump threatened to raise tariffs on select Chinese imports, instilling lower market confidence, triggering significant volatility, and exacerbating existing political uncertainties. To explore what is really at stake in Twitter diplomacy, it is important to explore why Twitter diplomacy matters, why world leaders use it, what it means for diplomatic relations, and how governments can manage the associated risks.

Faced with those challenges and others, the president and his advisers offered mixed messages, apologising for and explaining away actions by Russia and North Korea while taking a harder line toward Venezuela, Iran and China.

President Trump’s unconventional foreign policy appeared in disarray amid a series of setbacks around the globe and mounting signs that the president and his advisors were on the verge of losing several risky policy bets.