G7 leaders meet in Canada amid Israel-Iran war, Trump tension and trade disruptions
NOOR MOHMMED
16/Jun/2025

-
Israel’s attack on Iran and Tehran’s retaliation have forced G7 leaders to shift summit focus
-
Trump’s unpredictable behaviour and trade threats create bilateral tensions at the G7 table
-
Macron, Starmer and Zelenskyy seek unity while Trump eyes one-on-one talks and bold actions
The 2025 G7 summit, hosted in the Canadian Rockies, began on June 15, 2025, under intense global scrutiny. The gathering, meant to discuss economic cooperation and international challenges, is now overshadowed by the escalating conflict between Israel and Iran, as well as the unsettled global trade tensions fuelled by U.S. President Donald Trump.
This year's G7 — comprising Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States — was originally expected to focus on AI regulations, climate initiatives, and sustainable development. However, a sudden escalation in the Middle East conflict and Trump's erratic foreign policy agenda have realigned the focus of this summit.
Middle East on the Brink: Israel-Iran Conflict Takes Centre Stage
Just days before the summit, Israel launched military strikes against Iranian targets, prompting Tehran to retaliate — a series of developments that caught several world leaders off guard. The escalation marks one of the most dangerous flashpoints in recent geopolitical history, compelling G7 leaders to urgently reassess global security priorities.
British Prime Minister Keir Starmer, en route to the summit, confirmed that he had already spoken to both President Trump and Prime Minister Netanyahu, highlighting the need to de-escalate tensions. Starmer said, “There is a huge risk of escalation for the region and more widely.” The UK is also dispatching fighter jets and reinforcements to the Middle East, reflecting the growing seriousness of the crisis.
Trump Remains the Unpredictable Factor
The G7 summit host, Canadian Prime Minister Mark Carney, made a significant change by cancelling the traditional closing communique, acknowledging that consensus may be impossible this year — largely due to President Trump.
Mr. Trump continues to rattle diplomatic norms, making controversial remarks, including threatening to make Canada the 51st U.S. state and reviving his interest in buying Greenland. These comments have sparked concern and ridicule, further straining relations with fellow G7 members.
French President Emmanuel Macron, stopping symbolically in Greenland before reaching Canada, affirmed France’s support for sovereignty and territorial integrity under the UN Charter. Despite his past efforts at diplomacy with Trump, Macron's attempts to influence U.S. policy have failed to yield long-term benefits — as seen in Trump's tariff threats on the European Union and inaction on Ukraine.
Bilateral Diplomacy Dominates as Trump Prefers One-on-One Talks
The summit risks becoming fragmented, with leaders favouring bilateral meetings over a collective agenda. Trump reportedly prefers such private encounters, using them in the past to intimidate leaders, including those from Ukraine and South Africa.
According to Peter Boehm, Canada’s G7 sherpa from 2018, Trump’s style shifts the summit’s focus, as he avoids roundtable diplomacy. Former Canadian PM Jean Chrétien advised leaders to stay calm and ignore Trump’s provocations, labelling him a “bully” who seeks attention.
UK PM Starmer, who met Trump warmly earlier this year, is now caught between diplomacy and controversy, especially given his muted response to Trump’s 51st state remarks.
Zelenskyy and Ukraine on the Agenda
Ukrainian President Volodymyr Zelenskyy is attending the summit and is expected to meet Trump — a tense reunion following a difficult Oval Office meeting earlier this year. Zelenskyy, alongside leaders like Macron and Starmer, is pushing for post-ceasefire security arrangements in Ukraine that might require U.S. backup, a proposal Trump has so far resisted.
The Macron Factor and the European Stance
Macron’s visit to Greenland is more than symbolic. It's a strategic assertion that France — and by extension Europe — will stand firm on sovereignty, borders, and multilateral cooperation. Macron’s interactions with Trump, though cordial at times, have not resulted in policy shifts. France remains exposed to U.S. tariffs, and European unity on security is being undermined by lack of American commitment.
India, Brazil, UAE, and Others Invited
Carney has also extended invitations to non-G7 countries, including India, Ukraine, Brazil, South Korea, South Africa, Australia, Mexico, and the UAE. These leaders are expected to engage on trade, climate, and security.
Their participation highlights a growing need to globalise G7 discussions, especially as the group's influence wanes and new powers rise. Yet, Trump’s presence remains the biggest uncertainty, with potential to derail broader cooperation.
Summit Format and Expectations
Unlike previous summits, this edition lacks a clear, unified outcome. Carney’s decision to drop the joint communique is symbolic of how divided the G7 is over key issues. From tariffs to climate change, AI governance to geopolitical alliances, member nations appear to have conflicting goals.
Analysts believe that the summit’s effectiveness hinges on whether leaders can contain Trump’s distractions and re-centre the focus on urgent global issues like:
-
The Israel-Iran conflict
-
The war in Ukraine
-
Trade tensions and economic stability
-
China and Russia’s increasing global influence
Conclusion
The 2025 G7 summit in Canada is unfolding at a time of extreme geopolitical volatility, with an escalating Middle East war, rising economic nationalism, and a U.S. president unwilling to play by traditional diplomatic rules.
World leaders must decide whether to be drawn into Trump’s chaos or to steer the global agenda back toward cooperation, peace, and shared responsibility. As Trump pushes bilateral power plays, others — from Macron and Starmer to Zelenskyy and Carney — must find ways to uphold multilateral values in a deeply divided world.
The outcomes of this summit may not be written in a formal document, but they will reverberate across future diplomatic decisions, especially as the world prepares for a changing global leadership order.
The Upcoming IPOs in this week and coming weeks are Safe Enterprises Retail Fixtures, Globe Civil Projects, Sambhav Steel Tubes, Ellenbarrie Indutrial Gases, Kalpataru, HDB Financials, AJC Jewel, ArisInfra Solutions, Influx Healthtech, Mayasheel Ventures, Eppeltone Engineers.
The Current active IPO are Oswal Pumps, Patil Automation, Samay Projects Services, Aten Papers, Monolithisch India.
Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.
Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.