German Chancellor Angela Merkel warned Israeli Prime Minister Benjamin Netanyahu that a decision by President Trump to withdraw from the Iran nuclear deal might lead to the collapse of the agreement and, as a result, could lead to a regional war. German officials told me Merkel made this position clear when she met Netanyahu at the world economic forum in Davos Switzerland on January 24th.
Why it matters: The meeting between Merkel and Netanyahu took place two weeks after Trump announced he'd withdraw from the nuclear deal if Germany, France and the U.K. couldn't agree on significant changes to the deal by May 12th. Since then, senior diplomats have been engaged in intense negotiations to save the deal. The Europeans now believe the chances of finding a formula which will satisfy Trump are very slim.