Iran War Expands Into a Wider Regional Crisis

The Iran conflict shifted from exchanges around Hormuz to a regional war involving Gulf states and direct strikes between Iran and Israel. That escalation outpaced diplomacy, as talks stalled or survived only as a fragile channel while the OECD warned that prolonged energy disruption could damage global growth.

Elsewhere, Israel's Lebanon campaign moved from territorial expansion to a failing ceasefire framework, while Gaza strikes continued as talks resumed. Russia intensified attacks on Ukraine while rejecting a proposed leader-level meeting, reinforcing the week's broader pattern of warfare narrowing diplomatic exits.