What you need to know

Aid deliveries in Gaza, clock is ticking on Iran

The U.S.- and Israel-backed Gaza Humanitarian Foundation (GHF) announced on Monday that it had begun operations to distribute food and essential supplies across the Palestinian enclave. The start of deliveries followed the resignation of the foundation’s executive director, who stepped down citing the group’s inability to fulfill its mission in a manner consistent with “humanitarian principles.”

Israel has argued that a revised aid system is necessary to prevent Hamas from diverting supplies to finance its operations. Since early March, Israel has blocked most aid into Gaza, leaving nearly the entire population at risk of malnutrition.

Even Israel’s traditional allies have sharpened their criticism.

United States Secretary of Homeland Security Kristi Noem visited Israel on Monday as an envoy of President Donald Trump. During her visit, she met with Israeli Prime Minister Benjamin Netanyahu to discuss regional security, including a tour of the border with Gaza.

The Iranian nuclear file featured prominently in their discussions. The White House has expressed concern that Israel may take unilateral action that could disrupt negotiations over a potential new nuclear agreement with Iran. In a phone call last week, Trump reportedly urged Netanyahu to refrain from any steps that might derail the talks.

Instability from Sahel to Horn of Africa amid state fragility, Russian interference, & Islamist insurgencies

Kenya says it supports Morocco’s plan for sovereignty over Western Sahara

Kenya declared on Monday its support for Morocco’s Autonomy Plan as a resolution to the long-standing dispute over Western Sahara—a diplomatic win for Rabat. The announcement followed talks in Morocco between Kenya’s Prime Minister and Foreign Minister Musalia Mudavadi, who was on a two-day visit, and Moroccan Foreign Minister Nasser Bourita.

Though Kenya’s endorsement of Morocco’s sovereignty plan is unlikely to yield immediate practical consequences, it marks a notable shift in Nairobi’s stance. Kenya had previously supported the Polisario Front’s push for independence and had hosted Brahim Ghali, president of the self-proclaimed Sahrawi Arab Democratic Republic.

In March 2024, Kenya appointed its first ambassador to Morocco. The new embassy is expected to be formally inaugurated during Mudavadi’s visit, although bilateral diplomatic relations date back decades.

The conflict, which began in 1975, centers on control of the territory. Morocco claims sovereignty over the entire region, while the Algeria-backed Polisario Front continues to call for an independent state. Mudavadi described Morocco’s plan as the only credible and realistic path to a lasting settlement.

America First

Japan set to spend $6.3 billion to offset economic hit from Trump tariffs

Japan’s Cabinet Secretary Yoshimasa Hayashi announced on Tuesday that the government has approved a ¥980 billion ($6.3 billion) package to assist households and businesses affected by U.S. tariffs. The funds will support small and medium-sized enterprises and subsidize household energy bills.

Japan’s economy has been battered by trade restrictions and inflation.

Although President Donald Trump delayed the implementation of a reciprocal 24 percent tariff on Japanese exports until July, a 25 percent tariff on automobiles and car parts is already in effect. This sector, central to the Japanese economy, has borne the brunt of the impact.

Other nations are following suit. Spain recently announced a $15 billion relief plan, and Canada has pledged billions in economic support for affected industries.

It's now the US vs China, everyone else needs to pick a side

Peru talks with China & Brazil on transcontinental railway to bypass Panama Canal

Peru’s Economy Minister Raúl Pérez Reyes said on Tuesday that his government is pursuing high-level talks with Brazil and China on a proposed transcontinental railway connecting the Atlantic and Pacific coasts. If completed, the railway would reduce reliance on the Panama Canal for trade.

The concept gained momentum after the inauguration of Chancay Port in 2023, a Chinese-financed project that sparked renewed interest in the route. Brazil quickly expressed support for the railway following the port’s completion.

Earlier in May, several Latin American leaders traveled to China for a summit on China–Latin America relations. Jorge Viana, chief executive of the Brazilian Trade and Investment Promotion Agency, who attended the summit, said a transcontinental railway was becoming increasingly feasible. He noted that the route would allow Brazilian exports to reach Shanghai via Peru, cutting approximately ten days from the journey.

In April, a Chinese delegation visited Brazil to discuss infrastructure and regional integration with the Pacific, following strategic agreements signed during President Xi Jinping’s state visit last year.

Europe's center of gravity shifts east, politics moves right, & hostility to migrants from the south rises

EU approves 150 billion-euro arms fund

The European Union on Tuesday approved a €150 billion ($132 billion) loan initiative to bolster defense capabilities in response to Russian aggression and waning trust in U.S. support. The Security Action for Europe (SAFE) scheme, backed by the EU budget, was initially proposed in March to enhance the bloc’s defense posture.

The final text was approved at a ministerial meeting in Brussels, with 26 states voting in favor and only Hungary opposing. Poland, which holds the EU’s rotating presidency, called it the “first large-scale defense investment programme at EU level.” The plan allows up to 35 percent of spending to be directed to manufacturers outside the bloc, including those in Ukraine.

France’s Europe Minister Benjamin Haddad called the fund a pivotal step toward reducing EU dependence on the U.S. and strengthening “Europe’s strategic autonomy.” Since Russia’s invasion of Ukraine, EU defense spending has surged by 30 percent. The United Kingdom, though no longer a member of the EU, signed an agreement earlier this month permitting firms such as BAE Systems to take part in SAFE-funded projects.

Bulgaria set to accede to eurozone next year

The European Union is expected to approve Bulgaria’s accession to the eurozone by 1 January 2026, making it the 21st member of the currency union. Bulgaria, an EU member state that currently uses the lev, has long pursued euro adoption but has faced repeated setbacks due to political instability and unmet inflation targets.

Its accession was most recently postponed in 2024, when inflation breached the threshold required for membership. As of April, inflation had fallen to 3.5 percent. The European Commission is expected to confirm next week that Bulgaria has now met the necessary criteria.

Countries seeking to join the eurozone must demonstrate convergence with other EU economies, particularly in terms of price stability and fiscal discipline. While Bulgaria’s inflation remained low for many years, it spiked in 2021 after Russia cut off gas supplies, and again following the invasion of Ukraine in 2022. The country’s unstable political environment—marked by seven elections in under four years—has further complicated its path.

Nationalist and pro-Russian parties, along with President Rumen Radev, have agitated against the euro’s adoption, warning that it could erode household savings. Prime Minister Rosen Zhelyakov has countered those claims, stating that the transition will not trigger price shocks.

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