Trump says US will scale back military drills with South Korea

The White House has announced plans to scale back the scale and frequency of joint military drills with South Korea, a decision that follows Seoul's refusal to contribute forces or support to the US war effort in Iran. The move is significant for the decades-old alliance, which has operated as a cornerstone of regional deterrence in East Asia.

For markets, the announcement signals potential friction between two long-standing allies at a time of elevated geopolitical uncertainty. Reduced military cooperation could be read as a strain on the US security guarantee, which investors often view as a stabilising factor for the region. While the direct impact on global financial assets is likely muted in the near term, the