Hungary expels 10 Russian diplomats, escalating EU-Russia tensions

Ceuta, a Spanish enclave in North Africa, has appealed to the European Union for assistance amid a growing border crisis linked to the Spain-Morocco migration tensions. This request comes as the EU continues to treat the situation as a border-security issue, avoiding military escalation. Concurrently, Hungary has expelled 10 Russian diplomats, indicating a deepening of the diplomatic standoff between the EU and Russia. Despite Hungary’s assurance that it is not severing diplomatic ties, this move suggests increased tensions in the region. These developments have potential ramifications for the ongoing Ukraine-Russia peace negotiations. The expulsion of Russian diplomats by Hungary is seen as a diplomatic escalation, which markets interpret as potentially detrimental to the likelihood of a peace deal being reached before 2027. The market for a Ukraine-Russia peace deal now reflects a 10.5% probability, down from 12% in the last 24 hours, suggesting participants view the current diplomatic climate as less conducive to productive negotiations. Key Takeaways Hungary’s expulsion of Russian diplomats suggests an escalation in EU-Russia tensions, which could impact peace negotiations. Ceu...