Prof G Markets · Wednesday, July 8, 2026
The NATO summit in Turkey highlighted a new global arms race, with US military assets being shifted from Europe to the Middle East and Indo-Pacific. This change in US focus is compelling European NATO allies to increase their own defense spending, leading to significant deals in defense industry and counter-drone capabilities.
“And the big takeaway so far is that a new global arms race is underway.”
“Trump is pulling US military assets out of Europe and shifting focus to the Middle East and Indo-Pacific.”
“That is forcing Europe to shoulder more of its own defense. NATO allies have agreed to at least $50 billion in defense industry deals and $40 billion in counter-drone capabilities.”