Welcome to the Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union.

Open hostilities between Israel and Iran, now into a fourth day, and their impact on global energy markets, will dominate discussions at the Group of Seven summit starting today in the foothills of the Canadian Rockies. Rising energy prices would complicate EU efforts to lower the oil-price cap to squeeze Russian revenues, one of the bloc’s priorities for the 50th anniversary of the gathering but a proposal that lacks crucial US backing. Commission chief Ursula von der Leyen said the EU is ready to coordinate with like-minded partners to ensure energy-market stability. Meanwhile, EU trade chief Maros Sefcovic has joined the EU delegation in Canada, seeking progress in talks with American counterparts on trade tariffs with the aim of sealing a deal before a July 9 deadline.

— Jorge Valero and Samuel Stolton

What’s Happening

Emergency Call | EU foreign ministers will hold an emergency video call tomorrow to discuss the escalating tensions in the Middle East, according to a source. They’ll coordinate outreach to Israel and Iran and discuss next steps. Read our Big Take on the conflict here.

Gas Countdown | The EU is set tomorrow to publish details on how it plans to implement a ban on all Russian gas by the end of 2027 — and overcome Hungarian and Slovakian opposition. Check out the details here. EU energy ministers will have their say at talks today in Luxembourg.

Final Cut | Economists still expect the ECB to lower interest rates one more time this year, even after policymakers signaled they’re in no rush to ease further. President Christine Lagarde said the central bank is approaching its inflation goal, but warned of uncertainty stoked by US trade policy.

German Outlook | Germany’s economy will — just about — return to growth this year after two years of contraction, according to a Bloomberg survey. Respondents see gross domestic product expanding by 0.2% — a slightly rosier outlook for Europe’s biggest economy than the stagnation they predicted in May’s poll.

Around Europe

Ukraine Call | Ukrainian President Volodymyr Zelenskiy wants clarity from the US on how it would broker a ceasefire in the war with Russia. In a call with Putin on Saturday, Trump told the Kremlin leader he should end the hostilities.

Coveted Island | President Emmanuel Macron said France would be prepared to take part in joint exercises to bolster security in Greenland, the Danish territory between the Arctic and Atlantic oceans coveted by Trump. “Everyone thinks — in France and in the EU — that Greenland shall neither be sold nor taken,” Macron said yesterday in the island’s capital, Nuuk, alongside Danish Prime Minister Mette Frederiksen.

Banking Deals | Bank acquisitions are flooding Europe’s Mediterranean. The latest saw France’s BPCE swoop for a 75% stake in Novo Banco of Portugal, in what would be the biggest cross-border banking takeover in the euro region in a decade.

Belgian Downgrade | Belgium’s credit rating was cut by Fitch, signaling an increase in uncertainty about the country’s ability to rein in years of debt accumulation. The rating agency said the country’s “fiscal position has structurally weakened” and it expects “a continued moderate upward trend for general government debt/GDP.”

Chart of the Day

As G-7 leaders gather in Canada, the full impact of  Trump’s tariffs push is becoming clearer. According to Bloomberg Economics, should the tariff regime endure, the world economy may be $1 trillion smaller than it would have been had the US remained in the Trans-Pacific Partnership — a group originally intended to limit the economic might of China.

Today’s Agenda

All times CET

• 8:15 a.m. EU energy ministers’ arrivals ahead of meeting in Luxembourg
• 10:45 a.m. Luxembourg Prime Minister Luc Frieden speaks to Bloomberg TV in London
• 7:00 p.m. EU Economy Commissioner Valdis Dombrovskis, and cohesion chief Raffaele Fitto appear before EU parliament panel in Strasbourg
• EU parliament plenary in Strasbourg, France
• Von der Leyen and EU Council chief Antonio Costa attend G-7 summit in Kananaskis, Canada