What We're Watching
US-Iran ceasefire in doubt, Venezuelans adjust to a new normal, EU blocks funding for Chinese solar tech
Vessels in the Strait of Hormuz, Musandam, Oman, May 8, 2026.
REUTERS
Both the United States and Iran accused the other of violating the truce on Thursday. The US said it thwarted attacks on three Navy ships in the Strait of Hormuz, while Iran accused the US of firing on an oil tanker attempting to pass a US blockade. But US President Donald Trump dismissed the exchanges as a “trifle,” and Iran’s foreign minister suggested today that Tehran does not believe the ceasefire is dead. The two sides are still debating a proposal to reopen the waterway and negotiate a longer-term deal. Will diplomacy work? As Eurasia Group’s Head of Research Jon Lieber argued in a recent episode of “The Debrief,” both Washington and Tehran have strong incentives to negotiate. The war is unpopular for Trump at home, while Iran’s economy is in shambles, and the country is eager to move toward a new status quo.
The European Commission this month formalized a decisionto block EU funding for projects using Chinese-made inverters, which convert energy from solar panels into electricity. But Brussels fears the technology — which can connect to the internet and be remotely operated — could leave Europe vulnerable cybertattacks and blackouts by rival powers. China denounced the action on Thursday, arguing the EU’s designation of Chinese companies tech giants like Huawei as a “high risk” supplier was made without evidence and will destabilize trust, trade and supply chains. The EU’s decision raises the specter of more restrictions, notably on the import of Chinese EVs, which are effectively banned in the US out of concern for data security and American jobs. Europe currently buys $20 billion of Chinese EVs and hybrids – a third of China’s EV exports – and has already tried to curb their appeal with 35% tariffsimposed in 2024, though they haven’t appeared to be successful.
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