Friedrich Merz & United States — Federal Reserve

Friedrich Merz: Friedrich Merz, the German Chancellor, has become a target of Donald Trump's anger for refusing to back the war in Iran or contribute to a peacekeeping force in the Strait of Hormuz.

United States — Federal Reserve: The United States — Federal Reserve's policy actions, including its decision to hold interest rates due to inflation fears caused by surging energy costs, are being assessed by investors in the context of the broader market uncertainty.

Friedrich Merz: Friedrich Merz, the German Chancellor, supports direct peace talks between Israel and Lebanon and a diplomatic understanding between the United States and Iran.

United States — Federal Reserve: Donald Trump renewed his threat to sack United States — Federal Reserve boss Jerome Powell, though this had little major market reaction.

Friedrich Merz: Friedrich Merz, German Chancellor, has criticized the United States' approach to the conflict, stating that the US is being 'humiliated' and lacks a clear exit strategy.

United States — Federal Reserve: The United States — Federal Reserve, through its Chair Jerome Powell, has expressed concerns about the economic uncertainty caused by the energy shock from the conflict.