US intel warns Russia may target NATO ally to fragment alliance

US intelligence has reportedly warned that Russia might launch a limited attack on a NATO ally between this fall and 2029, aiming to fragment the alliance. This development comes amid ongoing tensions between Russia and NATO, with the confrontation centered around Russia’s military actions in Ukraine and its broader regional ambitions. The warning suggests potential scenarios of a cyberattack, the use of deniable forces, or a small land incursion, which may test NATO’s response under Article 5 without escalating into full-scale war. Observers note that Russia’s capacity for such actions is closely tied to its military situation in Ukraine. Key Takeaways The warning from US intelligence suggests a potential increase in the likelihood of a limited Russian attack on a NATO ally, consistent with a rise in perceived threats. Market pricing implies a modest increase in the probability of a NATO-Russia military clash by the end of 2026, with current odds at 23.5% for a clash by December 31, 2026. The potential limited attack is viewed as a strategy to test NATO’s resolve and could involve hybrid tactics rather than a conventional military invasion. What to Watch Markets will be closely mo...