Spanish Prime Minister Pedro Sanchez said a US invasion of Greenland “would make Putin the happiest man on earth” in a newspaper interview published on Sunday.

Sanchez said any military action by the US against Denmark’s vast Arctic island would damage NATO and legitimize the invasion of Ukraine by Russia.

“If we focus on Greenland, I have to say that a US invasion of that territory would make Vladimir Putin the happiest man in the world. Why? Because it would legitimize his attempted invasion of Ukraine,” he said in an interview in La Vanguardia newspaper.

“If the United States were to use force, it would be the death knell for NATO. Putin would be doubly happy.”

President Donald Trump on Saturday appeared to change tack over Greenland by vowing to implement a wave of increasing tariffs on European allies until the United States is allowed to buy Greenland.

In a post on Truth Social, Trump said additional 10 percent import tariffs would take effect on February 1 on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Great Britain — all already subject to tariffs imposed by Trump.

Those tariffs would increase to 25 percent on June 1 and would continue until a deal was reached for the US to purchase Greenland, Trump wrote.

Trump has repeatedly insisted he will settle for nothing less than ownership of Greenland, an autonomous territory of Denmark. Leaders of both Denmark and Greenland have insisted the island is not for sale and does not want to be part of the United States.

i24 News – Syrian state media reported on Sunday that the Syrian government and the US-backed Syrian Democratic Forces (SDF) have reached an immediate ceasefire after days of clashes in Kurdish-held areas of the northeast.

The agreement, announced electronically by Damascus, marks a major shift in Syria’s ongoing efforts to reassert control over its Kurdish-majority regions.

According to the Syrian presidency, the deal, signed by President Ahmed al-Sharaa and SDF commander Mazloum Abdi, calls for a full halt to combat operations on all fronts, the withdrawal of SDF-affiliated forces to the east of the Euphrates, and the integration of SDF fighters into Syria’s defense and interior ministries on an individual basis.

The agreement also stipulates that the Syrian government will assume military and administrative control over Deir al-Zor and Raqqa, take over all oil and gas fields, and assume responsibility for prisons and camps holding ISIS members and their families. The SDF has committed to evacuating all non-Syrian PKK-affiliated personnel from the country.

“All lingering files with the SDF will be resolved,” Sharaa said, adding that he is scheduled to meet Abdi on Monday to continue discussions. The ceasefire is intended to open safe corridors for civilians to return to their areas and allow state institutions to resume their duties.

US Special Envoy Tom Barrack praised the agreement, describing it as a “pivotal inflection point” that brings former adversaries together and advances Syria toward national unity. Barrack noted that the deal facilitates the continued fight against ISIS while integrating Kurdish forces into the broader Syrian state.

The ceasefire comes after days of heavy fighting in northeastern Syria, highlighting both the fragility and potential of Damascus’ reconciliation efforts with Kurdish forces.

Global markets are facing volatility after President Donald Trump vowed to slap tariffs on eight European nations until the US is allowed to buy Greenland, news that pushed the euro to a seven-week low in late Sunday trading.

Trump said he would impose an additional 10 percent import tariff from February 1 on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain, which will rise to 25 percent on June 1 if no deal is reached.

Major European Union states decried the tariff threats over Greenland as blackmail on Sunday. France proposed responding with a range of previously untested economic countermeasures.

As early trade kicked off in Asia-Pacific, the euro fell 0.2 percent to around $1.1572, its lowest since November. Sterling also dipped, while the yen firmed against the dollar.

“Hopes that the tariff situation has calmed down for this year have been dashed for now – and we find ourselves in the same situation as last spring,” said Berenberg chief economist Holger Schmieding.

Trump‘s sweeping “Liberation Day” tariffs in April 2025 sent shockwaves through markets. Investors then largely looked past US trade threats in the second half of the year, viewing them as noise and responding with relief as Trump made deals with Britain, the EU and others.

While that lull might be over, market moves on Monday could be dampened by the experience that investor sentiment had been more resilient than expected in 2025 and global economic growth stayed on track.

US markets are closed on Monday for Martin Luther King Jr. Day, which means a delayed reaction on Wall Street.

The implications for the dollar were less clear. It remains a safe haven, but could also feel the impact of Washington being at the center of geopolitical ruptures, as it did last April.

Bitcoin, a liquid proxy for risk that is open to trade at the weekend, was steady, last trading at $95,330.

Capital Economics said countries most exposed to increased U.S. tariffs were the UK and Germany, estimating that a 10 percent tariff could reduce GDP in those economies by around 0.1 percent, while a 25 percent tariff could knock 0.2–0.3 percent off output.

European stocks are near record highs. Germany’s DAX and London’s FTSE index are up more than 3 percent this month, outperforming the S&P 500, which is up 1.3 percent.

European defense shares will likely continue to benefit from geopolitical tensions. Defense stocks have jumped almost 15 percent this month, as the US seizure of Venezuela’s Nicolas Maduro fueled concerns about Greenland.

Denmark’s closely managed crown will also likely be in focus. It has weakened, but rate differentials are a major factor and it remains close to the central rate at which it is pegged to the euro, and not far from six-year lows.

“The US-EU trade war is back on,” said Tina Fordham, geopolitical strategist and founder of Fordham Global Foresight.

Trump‘s latest move came as top officials from the EU and South American bloc Mercosur signed a free trade agreement.

HOT SPOTS EVERYWHERE

The dispute over Greenland is just one hot spot.

Trump has also weighed intervening in unrest in Iran, while a threat to indict Federal Reserve Chair Jerome Powell has reignited concerns about the US central bank’s independence.

Against this backdrop, safe-haven gold remained near record highs.

Given Trump’s recent Fed attacks, an escalation with Europe could pile pressure on the dollar if it adds to worries that US policy credibility is becoming critically impaired, said Peel Hunt chief economist Kallum Pickering.

“(This) could be amplified by a desire, especially among Europeans, to repatriate capital and shun US assets, which may also pose downside risks to lofty US tech valuations,” he added.

The World Economic Forum’s annual risk perception survey, released before its annual meeting in Davos next week, which will be attended by Trump, identified economic confrontation between nations as the number one concern replacing armed conflict.

A source close to French President Emmanuel Macron said he was pushing for activation of the “Anti-Coercion Instrument,” which could limit access to public tenders, investments or banking activity or restrict trade in services, in which the US has a surplus with the bloc, including digital services.

“With the US net international investment position at record negative extremes, the mutual inter-dependence of European-US financial markets has never been higher,” said Deutsche Bank’s global head of FX research George Saravelos in a note.

“It is a weaponization of capital rather than trade flows that would by far be the most disruptive to markets.”