As the world entered 2025, the geopolitical landscape remained dominated by military confrontations, economic realignments, and rising fears of war spreading to new regions. With conflicts raging in Ukraine, the Middle East, and heightened tensions in the Indo-Pacific, global powers have found themselves deeply entangled in strategic rivalries. The economic repercussions have been severe, shaking global markets and further straining developing economies like Pakistan. The major players and their strategic interests at play in these evolving international relations highlight how the world is responding with almost a sense of offensive defence. We see diplomacy at play at one hand and a show of power on the other, further escalating the situations. The U.S. has maintained its firm stance against Russian aggression in Ukraine while also focusing on countering China’s growing influence in the Indo-Pacific. With over $75 billion in military aid sent to Ukraine since 2022, Washington remains Kyiv’s most crucial ally. At the same time, the U.S. has strengthened military cooperation with Japan, South Korea, and the Philippines in response to China’s activities in the South China Sea and around Taiwan. While the Biden administration increased its engagement with India as part of the Quad alliance, further challenging Beijing’s ambitions. The Trump administration seems to have the South Asian emerging power on its toes balancing a delicate act between the US tariffs, BRICS currency war against the dollar and its present agitation at the Ladakh border. While New Delhi has continued to import Russian oil at discounted prices, it has also enhanced military cooperation with the West, purchasing advanced weaponry and technology. India’s defence budget rose by 13% in 2024, reaching $82 billion. The ongoing war in Ukraine and economic turmoil have intensified divisions within the European Union, weakening its long-standing relationship with the United States. With some EU nations growing weary of prolonged financial and military support to Ukraine, cracks are emerging within the bloc. Rising nationalist movements in countries like Hungary and Italy have called for reduced dependence on the U.S., while Germany and France remain committed to NATO’s strategic goals. The fear of an EU cooperation breakdown looms, particularly as economic strains push some member states to question the viability of collective security policies. This internal discord raises concerns over the potential for regional instability and a weakened front against external threats. If the EU’s unity fractures, it could significantly shift the balance of power, leaving Europe more vulnerable to Russian aggression and further economic downturns. The possibility of a full-scale confrontation in Taiwan, further escalation in the Middle East, or an expansion of the Russia-Ukraine war to NATO territories would have catastrophic consequences. China continues its delicate balancing act-supporting Russia diplomatically while avoiding direct military involvement. Beijing has increased trade with Moscow, with Sino-Russian trade reaching a record $240 billion in 2024, mitigating the impact of Western sanctions. However, tensions with Taiwan have escalated, with increased military drills near the island raising fears of a potential confrontation. China has also expanded its Belt and Road Initiative (BRI) investments to secure economic leverage in Asia, Africa, and the Middle East. Despite Western sanctions and military setbacks, Russia remains committed to its objectives in Ukraine. The war, which has resulted in over 500,000 casualties on both sides, has turned into a prolonged battle of attrition. Russia has relied on arms supplies from Iran and North Korea, while also securing economic lifelines through trade with China, India, and the UAE. Meanwhile, Putin’s government has used the conflict to strengthen nationalist sentiment at home, ensuring continued support despite economic hardships. Now Putin’s latest and largest military call-up since 2011 to expand the size of its army to almost 2.39 million signals at his militaristic intentions. The conflict between Israel and Hamas has kept the Middle East on edge, with Saudi Arabia playing a crucial role in diplomatic efforts to prevent further escalation. Riyadh’s growing ties with China and Russia have signalled a shift away from its traditional dependence on the U.S. At the same time, Saudi Arabia’s economic policies, including its ambitious Vision 2030, have positioned it as a key player in global energy markets, particularly as oil prices fluctuate between $85-$95 per barrel due to instability. The global economy has felt the weight of these conflicts. Inflation has remained stubbornly high, with energy prices surging due to supply disruptions. The IMF has forecasted a global growth rate of 2.8% for 2025, lower than the pre-pandemic average of 3.5%. Meanwhile, global military spending surpassed $2.2 trillion in 2024, putting further pressure on governments struggling with fiscal deficits. Supply chain disruptions have affected industries from semiconductors to agriculture. The shipping industry has been particularly hit, with Houthi attacks on Red Sea trade routes forcing companies to reroute via the longer and costlier Cape of Good Hope. As a result, global trade volumes have slowed, impacting economic recovery in many developing nations. Pakistan, already grappling with economic instability, has been significantly impacted by global tensions. The country’s economic growth remains stagnant at around 1.7%, with inflation hovering above 27% due to rising energy and import costs. Foreign exchange reserves have fluctuated between $6-8 billion, forcing Islamabad to rely on IMF bailouts and financial assistance from friendly nations like China and Saudi Arabia. The geopolitical crisis has also strained Pakistan’s strategic relations. While Islamabad continues to maintain its neutrality on the Ukraine conflict, it has expanded trade with Russia, particularly in energy imports. Meanwhile, border tensions with India have remained a concern, with occasional skirmishes and diplomatic standstills adding to regional uncertainty. A World on the Brink? As conflicts intensify, the risk of war spilling into new regions remains high. The possibility of a full-scale confrontation in Taiwan, further escalation in the Middle East, or an expansion of the Russia-Ukraine war to NATO territories would have catastrophic consequences. Diplomacy remains the only viable path to avoid a larger global crisis. As the world watches the unfolding events of 2025, one thing remains clear-this is a year of war, and its impact will be felt across every corner of the globe. The writer is Foreign Research Associate, Centre of Excellence, China Pakistan Economic Corridor, Islamabad.