Israel Intensifies Gaza Offensive Amid International Scrutiny
The conflict in the Middle East has seen a marked escalation, with Israel intensifying its bombing of Gaza City following evacuation orders for nearly one million residents. Reports indicate widespread destruction and a rising death toll, with 37 Palestinians killed in Israeli strikes on September 17, including 24 in Gaza City. This intensified assault involves coordinated attacks by land, air, and sea, signifying a major offensive with significant civilian impact. In response to the ongoing actions, Spain has reportedly canceled a substantial arms contract worth nearly $825 million for Israeli-designed rocket launchers. This development comes as Israeli Prime Minister Benjamin Netanyahu appeared in court to testify in his corruption trial, a case that has drawn considerable attention. Thousands of protesters in Jerusalem have also taken to the streets, marching to Netanyahu's residence to demand an end to the war and the release of hostages.
Global Economy Slows Amid US Tariffs and Anticipated Rate Cuts
The global economy is currently experiencing a slowdown, a trend Bank Indonesia (BI) attributes to the persistent impact of reciprocal tariffs imposed by the United States and high levels of uncertainty. Indicators suggest a deceleration in economic growth across most nations, with widening disparities. Business confidence in the US has reportedly weakened, leading to reduced household consumption and rising unemployment, while China's economic performance is also affected by declining exports to the US due to tariffs and weakening domestic demand. European and Japanese economies are likewise facing downward trends with export pressures.
In response to this weak global outlook and easing inflationary pressures, several central banks are contemplating accommodative monetary policies. The US Federal Reserve is widely expected to cut interest rates, with the dollar falling sharply against major currencies in anticipation of this decision. Gold prices have, in turn, reached a new record high as investors seek safe-haven assets amidst global uncertainty. This economic environment has also led to heightened scrutiny of US tariff policies, with concerns raised about their impact on various industries globally.
EU Seeks Enhanced Strategic Partnership with India
The European Union has unveiled plans to upgrade its strategic ties with India, signaling a significant move in international relations. The European Commission and the EU's High Representative for Foreign Affairs, Kaja Kallas, released "A New Strategic EU-India Agenda" on September 17, 2025, urging its adoption by the European Parliament and Council. Ms. Kallas emphasized India as a "crucial" partner for the EU, outlining a strategy that encompasses trade, technology, security, defense, and climate cooperation.
However, this initiative comes with certain caveats, as the EU has expressed concerns regarding India's ongoing military exercises with Russia and its continued purchases of Russian oil. These aspects are seen as potential risks to the burgeoning strategic relationship between Brussels and New Delhi. The push for a stronger EU-India partnership reflects broader geopolitical realignments and the desire to diversify alliances in a complex global landscape.