German Chancellor Friedrich Merz publicly rebuked President Trump over the U.S.–Israel war in Iran, refusing to apologize even after the Pentagon announced a pullout of 5,000 troops from Germany. Merz framed the criticism as a matter of principle, echoing a broader European pattern of standing firm against Trump’s pressure. European allies fear the rift could disrupt responses to gas prices.

Across the continent, leaders such as Italy’s Giorgia Meloni and Britain’s Keir Starmer echoed Merz, rejecting Trump’s demands for unrestricted use of European bases and a naval presence in the Strait of Hormuz. Their refusals have already coincided with market turbulence: gas futures spiked as investors priced in supply risks from a potentially fragmented NATO stance, while stock indices slipped on uncertainty.

Domestically, Merz faces little pressure to soften his tone; the Iran conflict remains deeply unpopular, pushing German poll numbers toward the Greens, Die Linke and AfD. Analysts warn that continued public spats could deter U.S. defense contractors from German projects, threatening billions in annual contracts. Germany thus risks both diplomatic friction and tangible economic losses for the broader European security framework.