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It's Tuesday, march 31, 2026. This news update was recorded at 7:00pm new york time on Monday. I'm deborah pardes and this is arc news daily. The war with Iran is causing economic stress worldwide, but there's no easy way out. America's allies are divided over how to end the pain. Europe wants the war to stop now, while some Gulf states are urging President Donald Trump to continue until Iran can no longer threaten the global economy. G7 leaders met on Monday to discuss surging oil prices and agreed to take all necessary measures to address the problem. But none of them agreed to confront the root cause, which is Iran's control of shipping through the Strait of Hormuz, where a fifth of the world's oil normal passes. German Chancellor Friedrich Mertz warned that the war could have an economic impact as severe as COVID 19. But he said his country would only intervene after the war is over. Italy's defense minister dismissed the idea of joining the U.S. altogether, saying, quote, we did not support this war. No one asked for our opinion. Japan's finance minister summed up the G7's posture. He said, quote, we agreed that we cannot let this drag on. The message to Washington is it's on you to end the war. But a handful of Gulf states see it differently. For them, the danger isn't that the war goes on too long, it's that it ends too soon, with Iran still able to threaten their oil fields, shipping lanes and cities. The United Arab Emirates Foreign Ministry said on Monday that Iran's weaponization of global trade is unacceptable and it makes coexisting with the Iranian regime impossible. In another indication of the war's global stakes, Ukrainian President Volodymyr Zelensky toured the Gulf last week and signed air defense deals with several Arab states. On Monday, he said Russia is actively supporting Iran and offered drone support to Gulf countries to help repel Iranian attacks. He said he'd be open to a similar deal with Israel. Meanwhile, Israel is increasingly focused on hurting Iran economically. On Monday, the Times of Israel reported that military leaders feel that the campaign has achieved most of its military goals and now they can shift their focus to damaging the regime's economic and energy infrastructure. But the strategy carries a risk. Destroying Iran's energy assets could also mean long term impacts to the global economy. Oil prices have already risen nearly 60% since the start of the war. On Monday, Iran's ambassador to Lebanon defied a government order to leave the country. It's the latest sign that Iran maintains a tight grip on the Lebanese government, making the prospect of a diplomatic solution with Israel less likely. Hezbollah, Iran's Lebanese proxy, entered the war at the start of the month, bombarding northern Israel with rockets. Israel responded with a ground invasion to protect residents near the border. Lebanon has tried to calm hostilities by confronting Hezbollah itself, but the standoff over the ambassador shows the limits of what the government is willing or able to do. The deadline for the ambassador to leave passed on Sunday. An Iranian diplomatic source said the ambassador is staying in accordance with Hezbollah's wishes. A senior Hezbollah official also threatened the foreign minister who ordered the expulsion. He said, quote, don't play with fire because this fire will burn you. Lebanon has recently renewed its long standing vows to disarm Hezbollah. The government has also moved to expel Iranian operatives and propose direct talks with Israel. But on Monday, Israel's Foreign Minister, Gideon Saar, said those steps have, quote, remained on paper only. He said Lebanon is still effectively occupied by Iran. Iran is reportedly pushing to protect Hezbollah as part of any ceasefire deal with the United States. According to Reuters, Tehran wants guarantees that the group won't come under further attacks. But Israel is still ramping up its ground offensive in Lebanon. It plans to continue the fight even after the war with Iran is over. Still, there are some signs that Hezbollah's sway over Lebanon may be weakening. On Monday, a Lebanese judge announced the conclusion of a probe into a deadly 2020 explosion that some have blamed on Hezbollah. The probe was blocked for years by Hezbollah and its allies, but resumed after Israel decapitated the terror group's leadership in 2024. And last week, Lebanon's Justice Minister, Adel Nasser, expressed outrage at Hezbollah for sabotaging diplomacy with Israel. He condemned the group's loyalty to Iran and called its provocations against Israel, quote, suicidal. In Jerusalem, a wartime security decision turned into an international incident. On Palm Sunday, Israeli police blocked the Latin Patriarch of Jerusalem from entering the Church of the Holy Sepulchre to celebrate a private mass. It's the holiest site in Christianity. According to police, the move was motivated by security concerns after multiple Iranian missiles targeted the area. But the backlash was immediate. European leaders condemned the decision as an insult to Christian worshippers and a violation of religious freedom. Even US Ambassador Mike Huckabee said it was difficult to understand or justify. He's long been a vocal supporter of Israel. Israel says prayer at all holy sites in the Old City has been restricted since the war began. The Passover priestly blessing at the Western Wall normally draws tens of thousands, but this year it will be held with just 50 worshipers. Prime Minister Benjamin Netanyahu said Israel had no malicious intent. By Monday, authorities had reached an agreement with Christian leaders to allow Easter services at the Church of the Holy Sepulchre. President Isaac Herzog personally called the Latin patriarch, who later described the incident as a misunderstanding.
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If you wake up in the morning and decide that your Christian faith requires you to support a foreign government blowing up churches and killing Christians, I think you've lost the thread.
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This isn't happening in a vacuum. These accusations fit a narrative that has been peddled by far right media figures like Tucker Carlson and Candace Owens. They claim that Israel is systematically oppressing its Christian minority. The incident is also a reminder that the war carries diplomatic costs. A survey of American Jews published last week found that 56% believe the war is hurting Israel's image and 65% believe it will increase antisemitism.
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We've already seen the Old City targeted by these murderous missiles, not just once, and that's alongside the residential communities that are being targeted nonstop over the last month.
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Israeli police issued a video statement on Sunday expressing a commitment to balancing freedom of worship and public safety.
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We officers of all religions and all backgrounds enforce these restrictions today so we can all worship in peace tomorrow.
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I'm Deborah Pardes and this is ARC News Daily. See you tomorrow.
Episode Title: Europe tells Trump to end the war
Host: Deborah Pardes (for Ark Media)
Theme: The global fallout from the ongoing Iran war—including geopolitical, economic, and religious repercussions—focusing on calls for the U.S. to end the conflict and tensions among America's allies.
This episode delivers a sweeping update on the political, economic, and diplomatic aftershocks of the Iran war, highlighting mounting European pressure on the U.S. to stop the conflict, contrasting perspectives from the Gulf states, new strategic moves by Israel, growing tensions involving Lebanon and Hezbollah, and the international uproar over Israeli restrictions at Christian holy sites.
The episode contextualizes these events for Jewish and global audiences, discussing the challenges facing regional alliances, the escalation of economic turmoil, concerns over religious freedoms, and shifting public opinion in America.
[00:14 – 02:05]
"We did not support this war. No one asked for our opinion." (Italy's Defense Minister)
"We agreed that we cannot let this drag on. The message to Washington is it's on you to end the war."
[02:05 – 03:20]
"[Russia] is actively supporting Iran and [Ukraine] offered drone support to Gulf countries to help repel Iranian attacks."
[03:20 – 05:38]
“Don’t play with fire because this fire will burn you.”
[05:38 – 06:44]
"It was difficult to understand or justify," even as a longtime Israel supporter.
"If you wake up in the morning and decide that your Christian faith requires you to support a foreign government blowing up churches and killing Christians, I think you’ve lost the thread."
[06:44 – 07:13]
[07:13 – 07:37]
"We've already seen the Old City targeted by these murderous missiles, not just once, and that’s alongside the residential communities that are being targeted nonstop over the last month." [07:13]
"We officers of all religions and all backgrounds enforce these restrictions today so we can all worship in peace tomorrow." [07:30]
Italy's Defense Minister (00:55):
“We did not support this war. No one asked for our opinion.”
Japanese Finance Minister (01:25):
“We agreed that we cannot let this drag on. The message to Washington is it’s on you to end the war.”
Hezbollah Official (04:42):
“Don’t play with fire because this fire will burn you.”
Lebanon’s Justice Minister, Adel Nasser (05:25):
“Suicidal” — describing Hezbollah’s provocations against Israel.
U.S. Ambassador Mike Huckabee (06:18):
“It was difficult to understand or justify.”
Speaker C (06:34):
“If you wake up in the morning and decide that your Christian faith requires you to support a foreign government blowing up churches and killing Christians, I think you’ve lost the thread.”
Israeli Police Statement (07:30):
“We officers of all religions and all backgrounds enforce these restrictions today so we can all worship in peace tomorrow.”
This Ark News Daily episode paints a complex picture of war-era geopolitics: U.S. allies deeply divided over how to end the Iran conflict, the region reeling from economic shocks and diplomatic standoffs, and Jerusalem thrown into religious and political controversy as security imperatives clash with global expectations. The host weaves in the voices of leaders, witnesses, and communities under fire, underscoring the war’s sweeping impact—from the G7 summit tables to the ancient holy sites of Jerusalem.