Why the G7 Summit in Canada Is Overshadowed by the Israel-Iran Crisis and Trade Wars

The G7 summit in Canada faces challenges from the Israel-Iran crisis, Trump's ongoing trade wars, and deep divisions among global leaders threatening cooperation.

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The 2025 Group of Seven (G7) summit, hosted in the scenic Canadian Rockies, arrives amid a growing sense of global unease. Leaders from some of the world's most powerful economies face a summit overshadowed by escalating tensions between Israel and Iran, and unresolved trade conflicts fueled by US President Donald Trump.

The complex dynamics at play reflect a world increasingly defined by geopolitical volatility and fractured alliances.

Israel-Iran Conflict The unexpected escalation in hostilities between Israel and Iran has blindsided many world leaders as they prepare for the summit. Israel's recent military strikes on Iranian targets and Tehran's swift retaliatory measures have sparked fears of wider regional conflict. The crisis threatens not only Middle Eastern stability but also global security, prompting urgent discussions among G7 members.

British Prime Minister Keir Starmer, en route to Canada, emphasized the gravity of the situation. "We recognize Israel's right to self-defense and have longstanding concerns about Iran's nuclear ambitions," Starmer said. Yet, he urged for de-escalation, warning of "huge risks" if the conflict intensifies. In support of Israel, the UK is deploying fighter jets and reinforcements to the Middle East.

Starmer has engaged in diplomatic talks with Trump, Israeli Prime Minister Benjamin Netanyahu, and other leaders, signaling a commitment to navigate the crisis collaboratively. However, the path to peace remains fraught with uncertainty, and the summit's foreign policy agenda is expected to be dominated by these tense discussions.

Trump's Trade Wars The summit's host, Canadian Prime Minister Mark Carney, has taken the unprecedented step of scrapping the traditional final communique. This departure signals the fractures within the G7, largely due to Trump's unpredictable stance on trade. His ongoing tariff wars with both allies and rivals threaten the summit's cohesion.