Geopolitical News (21st July, 2025)
Major Geopolitical Highlights
1.Israel launches ground and air offensive in Gaza
Israeli forces have intensified operations in Deir al-Balah, central Gaza. Over 50,000–80,000 residents were ordered to evacuate after humanitarian zones were hit. The recent offensive follows a deadly weekend where 93 Palestinians died while queuing for aid. The death toll since October 2023 now exceeds 59,000, with women and children making up over half. International bodies like the UN and Pope Leo are urging a ceasefire amid rising famine concerns.
2.U.S.–China financial and supply chain rivalry
U.S.–China legal and regulatory cross-border risk is reshaping multinational banks’ risk assessments.
Rare earth exports from China to the U.S. surged by 660%, signaling a strategic realignment in critical supply chains.
3.EU–China Summit reveals trade tension cracks
At the Beijing summit marking 50 years of EU–China diplomacy, leaders highlighted persistent trade friction and geopolitical divergence.
4.Middle East and energy developments
Israel strikes Houthi positions in Yemen as Gaza war drives regional tensions.
The Iraq–Turkey pipeline has restarted, enhancing Turkey’s role as an energy hub into the Mediterranea.
5.Mideast investors cautious amid global instability
Sovereign funds in the Middle East are increasingly factoring geopolitical uncertainty into their investment decisions.
6.U.K. business climate hit by instability and inflation
With 2025 GDP growth forecast near 1% and inflation at ~3.8%, geopolitical funding and energy shocks are weighing heavily on investor sentiment in the UK.
7.Russian-Iran naval drills in Caspian Sea
The CASAREX 2025 exercise began July 21, marking increased Russian–Iranian naval cooperation—aimed at regional dominance and limiting external strategic activity.
8.South Korea rattled by U.S. tariff threats
South Korean public opinion is souring as the U.S. threatens 25–40% tariffs from August 1, part of an “America First” approach, fueling unease in Seoul.
9.Sank losses: €320 billion wiped off global corporate earnings
A study found geopolitical and economic volatility erased approximately $320 billion in profits from large global firms between 2017–2024, with China suffering the most.
10.U.S. fertilizer sanctions threaten Latin America
Possible secondary U.S. sanctions on Russian fertilizers could disrupt agricultural producers in Brazil and Mexico, who rely heavily—up to 30%—on Russian supply.
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