President Trump could buy the Chagos Islands if UK’s handover deal with Mauritius collapses, The Sun reports citing sources

• An official told The Sun the idea should be “taken seriously” after ministers insisted it will not happen.

This headline suggests a potential shift in U.S. foreign policy, as President Trump’s interest in acquiring the Chagos Islands could create geopolitical instability. If the deal with Mauritius collapses, it could escalate tensions in the region and impact related markets, particularly those sensitive to U.S. military interests and trade dynamics. Investors should assess how this news might influence sentiment in risk assets like equities and commodities, as well as its implications for the USD and GBP.