The article argues that the post-Cold War era of U.S. unipolarity, established by the perceived invincibility demonstrated during the Gulf War, has ended. This decline is driven by globalization and technological diffusion, which have democratized advanced military capabilities, allowing regional actors to challenge major powers. Consequently, policymakers must prepare for a more volatile international order marked by frequent crises, heightened costs for securing global trade chokepoints, and reduced predictability from American power. The new rules dictate that great powers can no longer effortlessly impose their will through force.
The Climate Briefing: Climate change, energy and geopolitics
English Summary
Chatham House's latest Climate Briefing argues that the ongoing conflict in the Middle East highlights the inextricable link between fossil fuels, geopolitical vulnerability, and power dynamics, underscoring the complexities of the energy transition. Experts suggest that the shift to renewable energy sources will inevitably create geopolitical 'messiness' requiring careful management, and climate change impacts are actively reshaping global landscapes. The briefing emphasizes the need for governments to proactively navigate these challenges and learn from current events to ensure a stable and equitable energy future. Ultimately, the analysis calls for a more nuanced understanding of the interplay between climate, energy, and international security.
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The article argues that current market borrowing costs are rising independently of the Federal Reserve's policy stance, challenging the assumption that the Fed controls all rates. Evidence shows significant increases in key rates—such as 2-year Treasuries and mortgages—even while the effective federal funds rate remains steady. This divergence occurs because market rates reflect complex factors like inflation expectations, credit risk, and geopolitical volatility, which are outside the central bank's direct control. Policymakers should therefore recognize that sustainable rate moderation requires credible disinflation and disciplined government budgets, rather than relying solely on Fed intervention.
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Despite recent trade setbacks, the U.S. retains fundamental structural economic leverage over China, particularly in high-tech sectors and intermediate goods. While Beijing can temporarily weaponize specific resources like rare earths, these chokepoints are vulnerable to diversification efforts by the West. The article argues that the most effective strategy is not unilateral action but coordinated multilateral pressure from U.S. allies across Asia and Europe. Washington must therefore coordinate its economic statecraft with partners to maximize damage to China’s export-dependent model.
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4.U.S. Navy Orders Low-cost Missiles to Expand Fleet, Allied Long-Range Maritime Strike Capabilities (USNI)
The U.S. Navy is prioritizing the procurement of low-cost, long-range cruise missiles through programs like CHAOS and CAMS to significantly expand strike capabilities for both its own fleet and allied partners. This strategic shift provides affordable precision munitions capable of striking targets up to 1,000 nautical miles, addressing critical stockpiles depleted by recent conflicts. By developing these systems, the U.S. aims to overcome procurement delays faced by allies (such as Japan and Taiwan) who rely on older missile designs. Ultimately, this initiative strengthens allied deterrence and bolsters long-range maritime strike capabilities necessary for potential conflict with China.
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Escalating tensions between Iran and the U.S., coupled with renewed Houthi blockades in the Red Sea, have severely disrupted critical shipping chokepoints like the Strait of Hormuz. Key evidence includes sharply reduced transit numbers and repeated attacks by Iranian-linked vessels off Oman's coast, while the Houthis enforce a maritime embargo on Saudi-linked ships. Strategically, this instability threatens global energy markets, forcing major powers to weigh their import needs. The continued volatility suggests that both Iran and the U.S. are willing to absorb significant economic pain to gain geopolitical leverage over regional stability.