The Global Forecast Monitor

This week, Israel intensified its military campaign in Gaza as the U.K., EU, and Canada threatened economic restrictions against Israel. In the Russia/Ukraine conflict, the EU and U.K. issued new sanctions against Russia, while U.S. President Donald Trump announced the U.S. would scale back mediation efforts following a phone call with Russian President Vladimir Putin. In the Indo-Pacific, the EU proposed tariffs on China in alignment with Washington, while China expressed disapproval of U.S. plans to build a new missile defense system and to ban the use of Chinese microchips in the U.S.

On his diplomatic tour of the Middle East’s Gulf region this week, President Donald Trump announced the U.S. will lift sanctions against Syria. U.S. Special Envoy Steve Witkoff, meanwhile, presented Iran with a written proposal for a nuclear deal. Russian President Vladimir Putin did not show up to planned negotiations with President Volodymyr Zelenskyy in Istanbul, though diplomacy was held among officials from Russia, Ukraine, the U.S., and Türkiye. The U.S. and China agreed to pause reciprocal tariffs for 90 days and remove key export and import bans as trade negotiations progress, and China pledged increased investment to Latin American countries.

This week, the conflict between India and Pakistan escalated with India launching multiple military strikes against its neighbor. Meanwhile, the U.S. agreed to hold high-level trade talks with China for the first time this weekend in Geneva. In Russia, President Vladimir Putin hosted Chinese President Xi Jinping for Moscow’s Victory Day parade, while Ukrainian President Volodymyr Zelenskyy proposed establishing a demilitarized zone between Russia and Ukraine. In the Middle East, the U.S. agreed to a cease-fire with Yemen’s al-Houthi forces after a successful mediation by Oman as it plans to continue nuclear negotiations with Iran this weekend. Israel called up reservists to prepare for its incursion into Gaza. The U.K. was the first country to conclude a trade deal with the U.S., securing a reduction in tariffs on the hardest hit sectors of steel and cars.