Iran has reportedly assessed attacks on US military targets in Europe, according to two people close to the regime.

The timing sets up a test for the rotation into European assets. The money moved in as semiconductor volatility rose and past signs of cooling hostilities lifted regional sentiment.

European Equity Inflows Took Nearly Three Quarters of Global Money

European equity funds pulled in $13.52 billion in the week through August 12. LSEG Lipper data shows that it was the largest weekly inflow since July 8.

The money arrived as global equity funds logged a 12th straight week of inflows worth $18.62 billion. Europe claimed 72.6% of that total. Investors withdrew $1.7 billion from technology funds over the same stretch.

The rotation started earlier. BeInCrypto reported that European stock ETFs recorded their first positive month since February in July, with $4.4 billion reportedly flowing into BlackRock products.

Tehran Signals the War Could Reach Europe

The capital arrives as Iranian planning has reportedly turned toward Europe. The Financial Times, citing two regime insiders, reported that Iranian forces have examined attacking US military targets in Europe in case Donald Trump escalates the war.

The targets may include Bulgaria, which cleared its Bezmer air base for American refueling aircraft last month. One insider also named Cyprus. 

Iranian forces have separately weighed cutting subsea fiber-optic cables in the Strait of Hormuz should Washington escalate.

“Should the US go too far, Iran will defend itself at any price, go beyond the region and hit Europe too,” an Iranian regime insider said, quoted by the FT 

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Not every assessment supports the threat. Sidharth Kaushal of the Royal United Services Institute described the danger to European targets as real but limited. He cited range constraints.

Douglas Barrie of the International Institute for Strategic Studies pointed to Iran’s attempted strikes on Diego Garcia as evidence of reach beyond 2,000 kilometers. However, he questioned how many such weapons Tehran holds.

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Source: BeInCrypto