Dear Focus Reader,

This week, U.S.-Iran diplomacy has been marked by conflicting signals about a possible agreement. Pakistan, acting as a key mediator, said a "final, agreed-upon text" has been reached, while Iranian officials described talks as in their "final stages," and indicated that approval from Iran's Supreme Leader is still pending. President Donald Trump claimed that the U.S. had "ended the war" with Iran after cancelling further strikes, though neither Washington nor Tehran has confirmed anything final.

China has continued to call for a comprehensive ceasefire and the restoration of maritime traffic through the Strait of Hormuz, with Foreign Minister Wang Yi stating that "a lasting truce is essential to restoring regional stability and global energy flows."

Meanwhile, in Europe-China relations, trade tensions continue to intensify as policymakers respond to concerns over industrial overcapacity and widening trade imbalances. German Chancellor Friedrich Merz said Europe must be prepared to respond to concerns over industrial overcapacity and subsidized exports, warning against trade practices by other countries that distort competition, stating: "Where others fail to comply with common rules, we cannot and will not stand idly by." He added that the EU is considering expanding its trade tools ahead of upcoming EU Council Summit discussions.

European policymakers are also weighing additional measures to protect domestic industry, as China's trade relationship with key EU economies, particularly Germany, comes under growing pressure amid shifts in manufacturing competitiveness and persistent deficits in bilateral trade.

Learn more on international relations by exploring our latest Focus content, including topics on diplomacy, ASEAN, and more.