Ukraine has intensified long‑range drone attacks on Russia’s oil infrastructure. President Volodymyr Zelenskyy said Ukrainian drones hit another refinery overnight, triggering a large fire and adding to a broader campaign targeting refineries and energy facilities deep inside Russian territory.
Germany’s chancellor is urging the European Union to create an “associate membership” status for Ukraine. The proposal is meant to introduce an intermediate form of accession and is paired with calls to reinvigorate talks to end more than four years of war with Russia, indicating a push inside the EU for a new framework in dealing with Ukraine’s status and the conflict.
After a short truce earlier in May, heavy fighting has resumed in the Russia‑Ukraine war. Russia has launched large night‑time barrages against Ukrainian cities and infrastructure, while Ukraine continues “deep strikes” toward Moscow. These developments are raising concerns about potential escalation along the Belarus front as well.
Global markets remain volatile as oil prices swing sharply during the Iran war and amid worries over partial closure of the Strait of Hormuz. Equity indices have been whipsawed, while major currencies such as the dollar and euro are reacting to shifting expectations around a possible Iran deal and the risk of energy‑driven inflation.
Hopes for progress on an Iran agreement have grown, with reports that Tehran and Washington are continuing indirect talks brokered through Pakistan. This has eased some “safe haven” flows in currency markets, though the wider security situation in the Gulf remains tense.
The United Nations has lowered its forecast for global economic growth in 2026, citing the energy shock from conflict in the Middle East and higher oil prices. The revised outlook would make 2026 one of the weakest growth years this century outside of the 2008 financial crisis and the COVID‑19 period.