Iran and Pakistan are working towards a renewed push for trade expansion, but both countries face challenges in shielding their trade from punitive action, protecting banks and customs authorities, and incentivizing businesses to participate despite the risk. The diplomatic layer is also crucial, as both nations must balance strategic relations with Iran and the West without jeopardizing existing partnerships. A successful trade expansion requires a quiet understanding with Washington, or at least the ability to convincingly demonstrate that the arrangement does not violate international obligations. However, there is a lack of transparency from both governments on how these goals will be achieved, which may lead to scepticism and policy fatigue among stakeholders. Despite this, the alignment in political vision and economic intent between Iran and Pakistan holds promise for transformative results if they can align on execution and navigate the complexities of trade in today's world.
An Israeli airstrike in Gaza City killed five Al Jazeera journalists, including prominent correspondent Anas al-Sharif, 28, who was accused by Israel of being a Hamas militant and advancing rocket attacks against Israelis. The European Union condemned the killing as a 'grave breach of international humanitarian law' and called for clear evidence to avoid targeting journalists. EU foreign minister Kaja Kallas urged Israel to allow more aid into Gaza despite recent agreements to increase access, citing growing needs in the territory.
The International Criminal Court has issued arrest warrants for Israeli Prime Minister Netanyahu and former defence minister Yoav Gallant, charging them with war crimes and crimes against humanity. Many international law experts, scholars, and human rights groups have accused Israel of committing genocide in Gaza. Even traditional supporters like former prime ministers Ehud Olmert and Ehud Barak, literary giant David Grossman, and rabbis Jonathan Wittenberg and Delphine Horvilleur, have harshly criticized Netanyahu's actions. The US is the only major global supporter of Israel, but many Americans are questioning the depth of Netanyahu's influence in Washington and the value of US aid to Israel, with a Gallup poll showing fewer than half of Americans sympathetic towards Israel.
Pakistan's Ministry of Overseas Pakistanis and HRD has shared a finalized draft Memorandum of Understanding (MoU) with relevant stakeholders for approval. The MoU is expected to be signed during the visit of Belarus' interior minister by the end of August 2025. A total of 17,236 Pakistanis are detained in prisons worldwide, with 85 held in Afghanistan, where the Ministry of Foreign Affairs failed to provide details on their crimes. The committee directed the ministry to submit comprehensive data on overseas Pakistanis and expedite efforts to finalize Prisoner Transfer Agreements with various countries. Senator NasirMehmood recommended verifying the citizenship status of the Afghan detainees, while Senator Raja Nasir Abbas highlighted the illegal detention of his relative in Iraq.
Pakistan's junior finance minister Bilal Azhar Kayani is in talks with US officials to finalize a trade deal that includes investments commitments from Washington. The agreement aims to improve tariffs on key exports and secure investment commitments in sectors such as energy, mines, and minerals.
Pakistan must remain vigilant in India-Pakistan relations due to ongoing "Operation Sindoor" and potential false flag operations. The country should disabuse India of the notion that conventional war is possible under nuclear threshold conditions. Pakistan's economic strength, robust defense, and deterrent capability are crucial. Under Modi, Kashmir's religious and cultural identity is at risk, prompting proactive efforts to raise the dispute at international forums like the UNGA. Building water reservoirs and improving domestic management are also priorities.
US President Donald Trump has extended a 90-day tariff truce with China, citing significant steps taken by Beijing to address US concerns over non-reciprocal trade arrangements and economic security matters. The new deadline is set for November 10, while the current 10% tariff on Chinese imports will remain in effect until then. This decision comes after two weeks of mixed signals from Washington, following a third round of trade talks in Stockholm, Sweden. The US seeks to address intellectual property rights issues and unfair subsidies that contribute to a $262 billion trade deficit with China. However, limited agreements such as increased soybean purchases and efforts to curb fentanyl production are unlikely to resolve deeper issues. Trade tensions will likely persist for years, according to Jeff Moon, a former US diplomat and consultancy founder. The US and China have avoided the immediate shock of triple-digit tariffs, with up to 145% from the US and 125% from China. Research by Goldman Sachs suggests that if a deeper trade war begins, American consumers could absorb up to 67% of the cost of pricier goods by June 2025. Despite this, fundamental tensions between the two nations remain unchanged, with both sides refusing to budge on key issues.
The US has been forced to adapt to a changing global landscape, where it can no longer impose its dominance through traditional means. The Trump administration's actions have damaged the rules-based liberal international order, leading to a new order that prioritizes bilateral agreements over regional ones. This shift will result in increased use of economic sanctions, limited wars, and reliance on drones and AI to resolve disputes. Global institutions are being dismantled, and cooperation is being reduced, while human rights and standards of engagement are compromised. The US's influence is evolving into a new phase, dubbed "Flux Americana," which will likely feature a more aggressive and unilateral approach to international relations.
UK Prime Minister Keir Starmer's spokesman stated that Putin cannot be trusted, citing past experiences where Russia rearmed and continued the war after ceasefire agreements. European leaders, including Trump, urged Ukraine to participate in talks about a potential ceasefire, with Trump signaling willingness to include Ukrainian President Zelensky in the meeting. The British government described the talks as "fluid," while German Foreign Minister Johann Wadeful dismissed suggestions of territorial concessions by Ukraine in exchange for peace with Russia.