A fragile ceasefire between Israel and Iran appears to be holding, with both sides reporting a de-escalation after a recent 12-day conflict. This development comes as global military spending continues its rapid surge, with NATO nations committing to significant defense budget increases, reflecting a worldwide rise in armed conflicts.
Despite a brief period of optimism, global economic prospects are weakening. The OECD projects a slowdown in global growth, particularly in major economies like the United States and China. Consumer confidence in the U.S. has notably soured in June, driven by anxieties over the impact of tariffs and persistent inflation. Geopolitical uncertainty and trade fragmentation are cited as significant factors contributing to this downturn, with economists warning of potential recessionary signals. While equity markets have seen some recovery, volatility remains, underscoring the precarious global economic landscape.
