The U.S. Military Buildup Near Iran Intensifies

Summary

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WSJ What’s News – The U.S. Military Buildup Near Iran Intensifies

Date: February 13, 2026
Host: Luke Vargas (with contributions from Daniel Michaels, Jared Malson, Stephen Wilmot, Zhou Yu Wong)
Theme: The U.S. sharpens its military posture near Iran, finalizes a pivotal chip deal with Taiwan, grapples with the aftermath of Biden-Trump EV policy shifts, and appraises the state of transatlantic relations at the Munich Security Conference.

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Episode Overview

This episode covers the increasing U.S. military presence near Iran amidst fraught diplomacy, a new U.S.-Taiwan chip agreement, the repercussions for Detroit after a shift in electric vehicle (EV) policy, and the chill in U.S.-Europe relations a year after Vice President J.D. Vance's remarks at the Munich Security Conference. The mood across global financial and political centers is one of uncertainty, adaptation, and recalibration.

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Key Topics & Discussion Highlights

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1. U.S. Military Posture Near Iran

Timestamps: 00:43–02:41

• The USS Gerald R. Ford, America's largest aircraft carrier, is joining a growing U.S. flotilla in the Middle East (00:43).

• The Trump administration continues a dual approach: seeking nuclear negotiations with Iran while ramping up military threats and sanctions in response to Iran’s crackdown on protestors.

• Jared Malson lays out the complexities:

  “Now the administration has pivoted to this very uncertain policy where they are both negotiating with Iran over their nuclear program and also saying that if they don't make a deal, they will strike Iran ... So he seems to be keeping his options open.” — Jared Malson (01:20)

• The administration recognizes the dangers of escalation and, despite tough rhetoric, has explicitly ruled out regime change. Protecting U.S. troops and Israeli interests complicates any strike scenarios.

  “Secretary of State Marco Rubio in January said there was a lot of complexity to the Iranian system where they essentially couldn't go in and do what they did in Venezuela with Maduro.” — Jared Malson (02:17)

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2. U.S.-Taiwan Chip and Tariff Deal

Timestamps: 02:41–03:57

• The U.S. and Taiwan agree to slash tariffs (32% → 15%) amidst strategic decoupling from China.
• TSMC, the world’s top advanced chipmaker, will increase U.S. investments in exchange for tariff exemptions (03:15).
• Zhou Yu Wong notes officials see this as deepening both economic and security ties, though China (Beijing) voices strong objections to any U.S.-Taiwan official engagement.
• The move is part of broader U.S. efforts to bring semiconductor manufacturing stateside.

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3. U.S.-Europe Relations: The Munich Security Conference

Timestamps: 03:57–08:12

• On the anniversary of Vice President J.D. Vance's controversial speech, the relationship is more “strained than ever.”

• A memorable quote from Vance's 2025 speech highlighted divisions:

  “The crisis this continent faces right now, the crisis... I believe we all face together, is one of our own making.” — J.D. Vance, recalling Daniel Michaels' summary (03:57)

• Conference Chairman Christoph Heusgen mourned a fading sense of unity:

  “We have to fear that our common value base is not that common anymore, let me conclude, and this becomes difficult.” — Christoph Heusgen, via Daniel Michaels (04:07)

• European anxieties continue over U.S. trade demands, new tariffs, and what France’s Emmanuel Macron calls, “trade agreements that undermine our export interests ... and openly aim to weaken and subordinate Europe ... an endless accumulation of new tariffs that are fundamentally unacceptable.”

• Daniel Michaels (live from Munich) says there is now a “constant brace position” among European officials—expecting disruption from Washington but hoping for a less confrontational approach from Secretary of State Marco Rubio:

  “He’s much more measured in his words, and it’s cliched to say, but we are in the new normal. And the new normal is, I think, especially in Europe, a sort of constant brace position for whatever the next thing coming from Washington is.” — Daniel Michaels (05:34)

• Fault lines remain over digital sovereignty and tech competition; Europe wants less reliance on U.S. tech giants, a tension set to grow:

  “Europe doesn’t want to be beholden to US Tech giants, though Europe has struggled to assert itself in that field. And at the same time, the administration is pushing back at European efforts to limit expansion of US Tech giants.” — Daniel Michaels (07:35)

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4. Corporate & Market Updates

Timestamps: 09:07–11:41

a. Goldman Sachs’ Epstein Fallout

• Katherine Rummler, top lawyer at Goldman Sachs, resigns after files reveal past close ties to Jeffrey Epstein (09:07).
• Rummler claims the relationship was strictly professional.

b. Detroit’s EV Whiplash

• U.S. automakers report over $50 billion in write-offs tied to EV investments, as policy reversals tank demand (10:05).

• Key point: The removal of the $7,500 EV tax credit triggered a collapse in U.S. EV sales.

• Stephen Wilmot explains the contrast internationally:

  “The most notable feature perhaps is the $7,500 tax credit, which until the beginning of October you could get against the purchase of an EV. And since that has fallen away, EV sales in the US have really fallen off a cliff.” — Stephen Wilmot (10:50) “Ironically, it’s the rise of EVs, particularly in China, that’s the problem for the European automakers, not the abrupt U turn in EV demand in the US.” — Stephen Wilmot (11:35)

c. Crypto Downturn

• Coinbase posts a quarterly loss as crypto prices slide; Bitcoin’s prolonged drop wipes out nearly $2 trillion in market value (11:41).
• Robinhood, a bellwether for retail investors, has seen its stock cut in half since Bitcoin’s peak.

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Notable Quotes & Soundbites

| Timestamp | Speaker | Quote | |-----------|----------------|------------------------------------------------------------------------------------------------------------| | 01:20 | Jared Malson | "...uncertain policy where they are both negotiating with Iran... and also saying if they don't make a deal, they will strike Iran." | | 02:17 | Jared Malson | "They essentially couldn't go in and do what they did in Venezuela with Maduro." | | 03:57 | J.D. Vance | "The crisis this continent faces right now, the crisis... I believe we all face together, is one of our own making." | | 04:07 | Christoph Heusgen | "We have to fear that our common value base is not that common anymore, let me conclude, and this becomes difficult." | | 05:34 | Daniel Michaels | "The new normal is, I think, especially in Europe, a sort of constant brace position for whatever the next thing coming from Washington is." | | 10:50 | Stephen Wilmot | "...the $7,500 tax credit... until the beginning of October you could get against the purchase of an EV. And since that has fallen away, EV sales in the US have really fallen off a cliff." | | 11:35 | Stephen Wilmot | "Ironically, it’s the rise of EVs, particularly in China, that’s the problem for the European automakers, not the abrupt U turn in EV demand in the US." |

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Structural Timestamps

• U.S./Iran Tensions: 00:43–02:41
• U.S.-Taiwan Deal: 02:41–03:57
• U.S.-Europe/Munich Security Conference: 03:57–08:12
• Goldman Sachs/Epstein Scandal: 09:07–10:05
• Detroit/EV Reversals: 10:05–11:41
• Crypto Crash: 11:41–12:13

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Episode Tone & Takeaways

The tone is brisk, analytical, and at times somber, reflecting a world where policy, markets, and alliances are in flux. The speakers are candid about uncertainty—whether in the unpredictable U.S. strategy toward Iran, the shifting sands of the transatlantic relationship, or the whiplash felt by Detroit and Stuttgart alike from sudden policy reversals and global competition.

If you missed the episode:
Expect a landscape marked by rapid change, strategic hedging, and a global search for stability, with the U.S. at the gravitational center—sometimes as a partner, sometimes a disruptor.

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Transcript

[Daniel Michaels]

We heard you.

[Luke Vargas]

Nine years of bring back the snack wrap and you've won. But maybe you should have asked for more. Say hello to the hot honey snack wrap. Now you've really won. Go to McDonald's and get it while you can. The Pentagon buildup near Iran intensifies. Plus, the US And Taiwan finalize a trade deal centered around chip investments. And the bill comes due for Detroit after Washington's EV U turn.

[Stephen Wilmot]

The most notable feature perhaps is the $7,500 tax credit, which until the beginning of October you could get against the purchase of an EV. And since that has fallen away, EV sales in the US have really fallen off a cliff.

[Luke Vargas]

It's Friday, February 13th. I'm Luke Vargas for the Wall Street Journal, and here is the AM Edition of what's news, the top headlines and business stories moving your world. Today, the US Navy's largest aircraft carrier is on its way to the Middle east after spending months in the Caribbean. The USS GE R Ford will be joining another aircraft carrier and nine warships already in the Middle east as the US Steps up plans for a potential attack on Iran. Journal correspondent Jared Malson says the Trump administration has been using a carrot and stick approach with Iran since promising to protect protesters.

[Jared Malson]

Since then, we've seen an evolution of US Policy. The protests have died down after this brutal crackdown by the Iranian regime in which they have apparently killed thousands of people. Now the administration has pivoted to this very uncertain policy where they are both negotiating with Iran over their nuclear program and also saying that if they don't make a deal, they will strike Iran. The administration is also dialing up the economic pressure on Iran through imposing more sanctions, for example, on its shadow fleet of tankers that it uses to export oil. So all of those things are happening at the same time. And Trump keeps saying that he wants to make a deal and if that doesn't happen, there will be strikes. So he seems to be keeping his options open.

[Luke Vargas]

Jared says that the Trump administration has acknowledged the potential downsides of military action and ruled out possible regime change.

[Jared Malson]

There are tens of thousands of US Troops deployed in the region who they would have to protect. They would also need the air defenses in place to protect Israel, as they have in the previous round of clashes with Iran. And Secretary of State Marco Rubio in January said there was a lot of complexity to the Iranian system where they essentially couldn't go in and do what they did in Venezuela with Maduro.

[Luke Vargas]

Washington and Taipei have today finalized a trade deal to lower the tariff on Taiwan from 32% to 15%. Core to the deal is an agreement that the world's largest advanced chipmaker, tsmc, will continue investments in the US and in turn be exempt from tariffs. As the Journal's Zhou Yu Wong explains.

[Stephen Wilmot]

Taiwan is where most of the world's.

[Luke Vargas]

Advanced semiconductor chips are being made, and the chairman administration been trying to basically.

[Stephen Wilmot]

Bring the semiconductor production back to US.

[Luke Vargas]

Soil, which is why TSMC is playing a key role in this tariff negotiation. Zhou Yu told us that officials also see the deal strengthening security ties. Beijing hasn't commented on the announcement, but said last month that it opposes any official exchanges between Taiwan and Washington. It's been one year now since Vice President J.D. vance addressed the Munich Security Conference and standing before U.S. allies eager for clues about the Trump administration's approach to tackling a slew of global threats, turn the tables on them. Europe faces many challenges, but the crisis this continent faces right now, the crisis.

[Daniel Michaels]

I believe we all face together, is.

[Luke Vargas]

One of our own making. Those words left Conference Chairman Christoph Heusgen close to tears.

[Daniel Michaels]

We have to fear that our common value base is not that common anymore, let me conclude, and this becomes difficult.

[Luke Vargas]

Vance's remarks suggesting a deepening estrangement with Europe proved prescient, and the transatlantic relationship this year looks as strained as ever. As France's Emmanuel Macron recently observed, competition from the United States of America through trade agreements that undermine our export interests, demand maximum concession concessions and openly aim to weaken and subordinate Europe, combined with an endless accumulation of new tariffs that are fundamentally unacceptable. Well, a year on from Vance's remarks, what's changed in the trajectory of the transatlantic relationship? Joining us this morning from the Munich Security Conference is Wall Street Journal Brussels Bureau chief Daniel Michaels. Dan, what's the mood? J.D. vance notably won't be back representing the U.S. that'll be Secretary of State Marco Rubio. Instead. What are people expecting?

[Daniel Michaels]

I guess the expectation and hope is that this year the event will draw less attention than last year and that the mood will be a little calmer and less tense. Secretary of State Rubio has been a bit more, shall we say, diplomatic, doesn't show the level of antipathy towards Europe that Vance and some other senior members of the US Administration have. He's much more measured in his words, and it's cliched to say, but we are in the new normal. And the new normal is, I think, especially in Europe, a sort of constant brace position for whatever the next thing coming from Washington is. So any day or week that goes without some new conflict or point of tension arising from the European perspective is a week of bought time to try and adapt to the current reality. Now, the open question and continued pressure from Washington is, is Europe adapting enough and fast enough? And that is a big question here this week.

[Luke Vargas]

I mean, how will we tell whether that's the case? What, what, what will be the big tests?

[Daniel Michaels]

So one of those tests Europe seems to have passed yesterday in Brussels at a meeting of NATO defense ministers, U.S. secretary of Defense Pete Hegseth did not attend, one of his deputies, and Elbridge Colby did. And Colby gave a sort of tough love message. But it was, by the standards of what this administration has said about Europe, not bad for Europe. It's kind of like, okay, good job so far. Keep it up and do more. And if that's the message coming out of Munich over this weekend, I think European leaders will somewhat breathe a sigh of relief.

[Luke Vargas]

And yet, Dan, tensions still remain. I'm curious what fault lines you'll be keeping an eye on in the next few days that could maybe crop up there in Munich.

[Daniel Michaels]

One thing you hear a lot from European leaders is that most of them are not happy with how President Trump approaches Europe and the things he says. But beneath it all, there is a grain of truth. Everyone has said Europe needs to do more about its own security. There were issues in the trade and economic relationship between Europe and the U.S. europeans would beg to differ with Trump's take on that. Even if there were imbalances. There are a lot of people here in Europe who look around and see everything electronic they deal with. I mean, if it's not manufactured in China, it's a US Company like Google or Facebook or Amazon. So each side has issues with the other and increasingly wants to, to some degree, break free of the other. One of the words that rises up above conversations here is sovereignty. Digital sovereignty, data sovereignty are huge issues. Europe doesn't want to be beholden to US Tech giants, though Europe has struggled to assert itself in that field. And at the same time, the administration is pushing back at European efforts to limit expansion of US Tech giants. So the digital arena probably is going to be an increasing area of tension, even as some other issues like defense spending, seem to be sorted out.

[Luke Vargas]

I've been speaking to Wall Street Journal Brussels Bureau chief Daniel Michaels with us this morning from Munich, Germany. Dan, thank you so much for the update.

[Daniel Michaels]

Always good to talk with you. Thanks.

[Luke Vargas]

Coming up, the crypto slide drags Coinbase to a big quarterly loss. And we'll tally up the growing bill as Detroit unwinds years of EV investments. Those stories and more after the break.

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[Luke Vargas]

In the latest fallout from the Epstein Files, Goldman Sachs top lawyer Katherine Rummler is set to step down later this year. Recently released FIL files revealed Rummler remained a close ally of the convicted sex offender up until his 2019 arrest, with him calling her on the night of his arrest and naming her a backup executor in a version of his will. Rummler maintains their relationship was strictly professional and says she had no knowledge of any new or ongoing unlawful activity on Epstein's part. It's been a tough earnings season for Detroit carmakers after years of big EV investments. GM, Ford and Stellantis have collectively announced more than $50 billion in WR amid signs that US EV demand could remain muted after a massive 30% drop in Q4 sales. Autos reporter Stephen Wilmot told me that carmakers around the world are contending with the fast evolving EV market, but that American companies have been especially hard hit.

[Stephen Wilmot]

Ford was the latest to report a huge loss because of EV write downs this week. It announced back in December a $19.5 billion charge on its EV business, sort of numbers reminiscent almost of the financial crisis. Stell hasn't actually reported formal results yet, but last week said it would report $26 billion, way higher than expectations. GM slightly lower charges because it's ploughing on with its large EV truck platform, but still in the high single digit billions of dollars. And the reason for this really is the U turn in US policy. Biden had promoted EVs pretty heavily, and since his election, Trump has gone much further than I think most people were expecting in reversing that policy. The most notable feature Perhaps is the 7,500 DOL credit, which until the beginning of October you could get against the purchase of an ev. And since that has fallen away, EV sales in the US have really fallen off a cliff.

[Luke Vargas]

All right, Stephen, some major headwinds for Detroit there, but things aren't exactly rosy for foreign carmakers either, right?

[Stephen Wilmot]

Yeah, that's right. We haven't seen the same level of write downs from the overseas automakers. We've seen some particularly from the Japanese, which have a big stake in the US market too. But I was in Germany yesterday for Mercedes results. They're not doing well at all. But it's not EV write downs, it's rather the intensity tense competition in China, where European automakers used to be much bigger than the Americans and have been losing share very rapidly to the Chinese EV makers. So ironically, it's the rise of EVs, particularly in China, that's the problem for the European automakers, not the abrupt U turn in EV demand in the US.

[Luke Vargas]

That was autos reporter Stephen Wilmot and crypto exchange Coinbase has posted a fourth quarter loss with revenue falling more than 20% as the recent downturn in crypto prices starts to hit the biggest institutional investors. Bitcoin has been on a months long slide since touching record highs in October, with the broader market for digital assets Having lost nearly $2 trillion in market value, with many fearing the start of the next crypto winter. Robinhood Markets, the brokerage app popular with crypto investors, has tumbled more than 50% since Bitcoin's high. And that's it for what's news for this Friday morning. Today's show was produced by Hattie Moyer and Daniel Bachelor. Our supervising producer was Sandra Kilhoff and I'm Luke Vargas for the Wall Street Journal. We will be back tonight with a new show. Otherwise, have a great weekend and thanks for listening.

[Daniel Michaels]

Hablas espanol?

[Luke Vargas]

Spritz du dzoitsch.

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