Iran weighs strikes on US targets in Europe
Analysis based on 20 articles · First reported Aug 19, 2026 · Last updated Aug 20, 2026
The threat of an expanded conflict raises geopolitical risk, potentially impacting energy prices and defense stocks. Markets may see increased volatility in oil and safe-haven assets as tensions between Iran and the US escalate.
According to the Financial Times, citing two people close to the Iranian regime, Iran has assessed potential strikes against US military assets in southeastern Europe, including Bulgaria's Bezmer air base and Cyprus, if US President Donald Trump escalates the ongoing conflict. Iranian forces have also examined targeting subsea fiber-optic cables in the Strait of Hormuz. The threats come as negotiations to reopen the Strait of Hormuz remain stalled, and Trump stated there are no talks with Iran. NATO has responded that it is prepared to defend all allies, citing its interception of Iranian ballistic missiles earlier this year. Iranian hardliners, including newly appointed top security official Mohsen Rezaee, have gained influence, signaling a tougher stance. Experts assess Iran's long-range strike capability as real but limited, with potential reliance on proxies. The June memorandum of understanding between the US and Iran collapsed last month, and diplomatic efforts have failed to produce a breakthrough.
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