EU Approves $106 Billion Loan to Ukraine

The European Union has issued preliminary approval for a $106 billion loan to Ukraine after Hungary lifted its months-long veto on the funds. The loan, originally introduced in December, was held up by a dispute between Hungary and Ukraine over an oil pipeline. With the new Hungarian government, led by Peter Magyar, taking a more supportive stance towards Ukraine, the path has been cleared for the loan. Ukrainian officials say that most of the funds will go towards the country's defense sector, which is crucial for Europe's long-term security. The loan is seen as a sign of a more constructive relationship between Ukraine and the EU, with Ukrainian officials welcoming it as a demonstration of the EU's commitment to their country's defense.

The UK's FTSE 100 index has outperformed Wall Street's major averages in 2026, continuing its strong performance from 2025. The index has gained around 5.3% so far this year, driven by its diverse composition, including 'HALO' sectors such as energy, mining, utilities, and industrials, as well as asset-light software and data businesses. Market watchers attribute the UK market's resilience to its defensive attributes, lucrative cash returns, and attractive valuations. However, cracks are beginning to show due to the ongoing war in Iran and the UK's vulnerability to energy price volatility. Experts are divided on whether the UK's outperformance will continue, with some citing the potential for renewed interest in non-US markets if the conflict is resolved, while others warn that the UK's relative importance may shrink if US tech dominance resumes.

The article reports on the ongoing tensions in the Middle East, particularly in the Strait of Hormuz, where Iran released footage of commandos boarding a ship, causing oil prices to rise. The EU foreign chief emphasized the need for nuclear experts in talks with Iran to avoid a weaker agreement than the JCPOA. The US offered a $10 million reward for information on the leader of an Iran-backed Iraqi armed group. The Israel-Lebanon ceasefire was extended for three weeks after US-facilitated talks. Goldman Sachs estimated that Gulf oil production could recover within months after the Strait of Hormuz reopens.

The European Union has approved a $106 billion loan package to help Ukraine meet its economic and military needs for two years after Hungary lifted its veto. The loan package was held up for months due to a dispute between Ukraine and Hungary over Russian oil deliveries. The EU also approved a new raft of sanctions against Russia over its war on Ukraine.