The world is on a knife’s edge as a week-old air war between Israel and Iran escalates dramatically, threatening to draw in global powers and sending markets into turmoil. Israel has launched a sweeping campaign of airstrikes against Iran’s nuclear and missile facilities, including the Natanz and Isfahan sites, with the stated aim of eliminating Tehran’s nuclear threat and destabilizing the regime. In retaliation, Iran has fired missiles and drones at Israel, striking an Israeli hospital and industrial areas. Israeli Prime Minister Benjamin Netanyahu vowed Tehran would pay the "full price," stating that while the downfall of Iran's leadership is not a stated goal, it "could be a result" of the campaign.

The United States’ role remains the critical unknown. President Donald Trump has veered between suggesting a swift diplomatic end and hinting at U.S. involvement, with the White House stating a decision will be made within two weeks. Behind the scenes, U.S. preparations for a potential conflict have been extensive, including diverting defensive weapons from Ukraine to the Middle East and drawing up detailed contingency plans to aid Israel. Trump’s special envoy, Steve Witkoff, has reportedly held several phone calls with Iran’s foreign minister, but the pressure from hawkish allies and Israel’s determination to act unilaterally appear to have pushed Trump to support, or at least not block, the Israeli strikes. Iran has warned that it will adopt a new strategy if a "third party" joins the conflict. The escalating war has caused oil prices to jump nearly 3% amid fears that Iran could disrupt the vital Strait of Hormuz, through which a significant portion of the world's oil passes. Countries around the globe, including China, India, and several European nations, have launched operations to evacuate their citizens from both Israel and Iran.

In U.S. domestic politics, the Democratic Party is facing a crisis of confidence, with a new Reuters/Ipsos poll finding that 62% of Democratic voters believe the party’s leadership should be replaced. Rank-and-file members feel there is a deep disconnect with party leaders, who they believe are not focused enough on core economic and "kitchen-table" issues like the cost of living and campaign finance reform. Meanwhile, the Trump administration's immigration crackdown continues to cause friction, with the Los Angeles Dodgers denying ICE agents access to their stadium parking lot.

In Canada, Prime Minister Mark Carney is grappling with new U.S. tariffs on steel and aluminum while trying to secure a new economic deal with Washington. Domestically, Ontario Premier Doug Ford is meeting with First Nations chiefs after facing widespread condemnation for controversial comments and for rushing through Bill 5, a law that gives the province sweeping powers to fast-track development and has been called an "attack" by Indigenous leaders. This comes as Canada’s spy agency, CSIS, publicly linked agents of the Indian government to the assassination of a Sikh activist in British Columbia.

Technologically, the future of air combat was on display at the Paris Airshow, where "wingman" drones—uncrewed aircraft designed to fly alongside fighter jets—took center stage. U.S. firms like Anduril and General Atomics are leading the development.

Global economic stories highlighted intense competition and collusion. China is flooding Brazil with cheap electric vehicles, triggering a backlash from local industry groups who are lobbying for higher tariffs. In India, an antitrust investigation has revealed how top executives from global advertising giants like WPP, Omnicom, and Publicis used WhatsApp to secretly coordinate and fix prices. On the safety front, India’s aviation regulator warned Air India for flying planes with overdue checks on emergency escape slides, a finding unrelated to but preceding the recent fatal crash of one of its Boeing 787s.