What you need to know

Germany moves to reimpose UN sanctions on Iran

German Chancellor Friedrich Merz confirmed yesterday that Germany has formally submitted a request to the United Nations Security Council to trigger the snapback sanctions mechanism against Iran on 15 July.

The snapback mechanism, established under UN Security Council Resolution 2231, allows any of the remaining signatories to the 2015 nuclear deal to request the automatic reinstatement of all UN sanctions previously lifted, should Iran be found in significant violation of its commitments.

Once such a request for snapback sanctions is submitted, the UN Security Council enters a 30-day period during which it must adopt a resolution to continue sanctions relief. If no resolution is passed (regardless of vetoes or abstentions) all prior sanctions are automatically restored.

If enacted, the snapback would reimpose a sweeping package of international restrictions on Iran. These include an arms embargo, financial and banking constraints, controls on space and missile-related technologies, and travel bans and asset freezes targeting designated individuals and entities. Iran would also lose access to key mechanisms of the global financial system, deepening its economic isolation.

The difference between the current U.S. sanctions, reimposed by the first Trump administration, and the UN’s snapback sanctions are as follows:

Tehran has strongly criticized the move, accusing European governments of undermining diplomacy and threatening to abandon what remains of its cooperation under the JCPOA. Iran’s foreign ministry described the initiative as a grave rupture in relations with Europe and warned of retaliatory measures.

America First

Trump threatens tariffs on Mexican imports as talks collapse

President Donald Trump has announced that the United States will impose 30% tariffs on a broad array of Mexican goods beginning 1 August, following the collapse of trade talks.

The proposed measures, which are expected to affect automobiles, agricultural commodities, and manufactured products, mark a significant escalation in economic friction between the two countries. Mexican President Claudia Sheinbaum condemned the tariffs as “unfair,” pledging to defend national sovereignty while continuing efforts to engage with Washington.

The announcement unsettled financial markets, sending the Mexican peso to a multi-week low as investors priced in the likelihood of trade disruption. Mexican officials voiced concern over the potential impact on exports and cross-border supply chains, though they have not yet outlined retaliatory steps.

In a related development, the U.S. Department of the Treasury has extended until 4 September the deadline for sanctions on three Mexican financial institutions: CiBanco, Intercam Banco, and Vector Casa de Bolsa. The delay reflects ongoing cooperation in U.S.-led investigations into money laundering and the financing of fentanyl trafficking. Despite this temporary reprieve, relations between the U.S. and Mexico remain strained, with the looming threat of tariffs injecting new uncertainty into an already fragile economic partnership.

Japan and the European Union plan joint satellite and defense initiative

Japan and the European Union are preparing to launch a joint satellite network with military-grade capabilities and to begin co-developing advanced weapons systems, in a bid to reduce their dependence on the United States for defense and strategic technologies.

The initiative envisions a constellation of small, secure communications satellites designed to provide near real-time geospatial intelligence and encrypted transmissions. At present, both partners rely heavily on U.S. platforms for such capabilities.

The project is expected to be formalized during the Japan–EU summit in Tokyo on 23 July. In parallel, Tokyo and Brussels intend to establish a public–private defense industry dialogue, aimed at standardizing technologies, co-financing armament projects, and reinforcing supply chains deemed vital to national security.

The move reflects mounting concern among European and Japanese policymakers that access to U.S.-controlled systems (such as satellite-based communications and surveillance networks) could be restricted during geopolitical crises. It also signals a broader strategic shift, as both sides seek greater autonomy in defense planning and technological innovation.

The proposed network would complement existing European efforts to build independent satellite intelligence infrastructure, while drawing Japan further into collaborative defense development outside the orbit of U.S. systems.

It’s now the U.S. vs China, everyone else needs to choose a side

Albanese visits China to boost trade and manage tensions

Australian Prime Minister Anthony Albanese has arrived in China for a six-day visit focused on deepening economic ties while managing an increasingly delicate security and diplomatic relationship. In Shanghai, he urged collaboration on environmentally cleaner “green steel” production, encouraging Chinese manufacturers to adopt low-emission technologies. Australia remains China’s leading supplier of iron ore, a trade worth A$105 billion this year. Bilateral relations were further reinforced through a new tourism agreement with Trip.com travel website and the lifting of multiple trade restrictions, which had previously cost Australia an estimated A$20 billion annually.

On matters of security, Albanese reaffirmed Australia's sovereign right to determine its defense commitments, particularly in relation to Taiwan. His visit coincides with Exercise Talisman Sabre, a large-scale military drill involving 35,000 troops, which is being closely watched by Chinese surveillance vessels.

Human rights will also feature in the discussions, with Albanese expected to raise concerns regarding the treatment of Uyghurs, the erosion of freedoms in Hong Kong and Tibet, and the prolonged detention of Australian writer Yang Hengjun.

While advocating for constructive engagement, Albanese emphasized that Australia would firmly defend its national interests. This includes a review of the Chinese lease of the Port of Darwin, a strategic asset under scrutiny. The itinerary includes meetings with President Xi Jinping, Premier Li Qiang, and Zhao Leji, chairman of the National People’s Congress. The visit underscores the delicate balancing act between restoring commercial links with China and maintaining close alignment with the U.S. and its Indo-Pacific allies.

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