When markets turned volatile in January 2026, it wasn’t because of a financial scandal or an economic shock. It was geopolitics, once again, forcing its way into portfolios. What began as a political dispute involving Greenland has grown into something much larger. Investors are no longer asking who is right. They’re asking something far more consequential: If tensions escalate, can Europe actually stand up to the United States?

Greenland has moved from the margins of world affairs to the centre of an uncomfortable geopolitical debate. Recent statements from U.S. political leadership, suggesting that control over Greenland is essential for American security and that military options cannot be ruled out, have transformed long-standing strategic interest into an openly contested issue of sovereignty. What was once quiet cooperation has now become a source of tension within NATO itself.