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Less than a month after Iran’s stunning defeat in a brief but consequential war with Israel and the United States, Prime Minister Benjamin Netanyahu has emerged politically stronger—at least for now. But as New York Times columnist Thomas Friedman notes to Ian in the latest episode of GZERO World, that boost may be short-lived unless Bibi finds a credible way to resolve the crisis in Gaza. “The people who won this war for Israel...were, for the most part, the very same people who were in the streets of Israel for nine months against Netanyahu and his judicial coup,” he says. That internal contradiction, he argues, is likely to reassert itself as the conflict continues.

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Survivors of the KMP Tunu Pratama Jaya ferry sinking wait to be identified by officers at Gilimanuk port, after the ferry carrying 65 people sank near the Indonesian island of Bali, in Bali, Indonesia, July 3, 2025.

REUTERS

65: A ferry carrying 65 people sank near the island of Bali, Indonesia, late on Wednesday. Six people have died as a result, and authorities have now ceased the search for another 30 passengers. The remaining 29 have been rescued. Ferries are a major mode of transport in the Indonesian archipelago, but safety standards are notoriously lax.

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Hannah Sylvestre

Iran’s Supreme Leader faces a number of challenges in the wake of the devastating 12-day war with Israel, and the perennial weakness of Iran’s economy is chief among them. Economic mismanagement, corruption, and strict Western sanctions have sapped output, weakened the currency and contributed to high inflation for years. But the recent spike in tensions with the US and Israel has accelerated the collapse of the Iranian rial, which has halved in value against the dollar since the end of last year. Here is a look at how the Iranian Rial has performed against the greenback since 2022.

U.S. House of Representatives Speaker Mike Johnson walks back to office, as Republican lawmakers struggle to pass U.S. President Donald Trump's sweeping spending and tax bill, on Capitol Hill, in Washington, D.C., U.S., July 3, 2025.

REUTERS

House holdouts bluff then fold on Trump’s budget bill

The US House is set to pass President Donald Trump’s epic tax-and-spending bill any minute now. Some eleventh hour House Republicans holdouts had signaled that they would oppose the broadly unpopular bill because it boosts the national debt by trillions while threatening to leave millions without health insurance, but they quickly fell in line after under direct pressure from Trump. The imminent final passage of the bill will fulfil Trump’s wish to have the landmark legislation on his desk by the Fourth of July holiday.

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Listen: On the latest episode of the GZERO World podcast, Ian Bremmer sits down with New York Times columnist Thomas L. Friedman to dissect what may go down as the most consequential month in the Middle East in years. Just weeks after Israel launched a war against Iran—and after President Trump authorized US airstrikes—an uneasy ceasefire is in place. But what was actually achieved?

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The Dalai Lama at the start of his 90th birthday celebrations in his exile in northern India.

Handout / Latin America News Agency via Reuters Connect

Who will be the next Dalai Lama?

As the Dalai Lama approaches his 90th birthday, he is meeting with top Buddhist figures this week to lay out succession plans that could draw a sharp response from China. The 14th Dalai Lama, Tenzin Gyatso, fled his native Tibet after a failed uprising against Chinese rule in 1959 and became the global face of a campaign for Tibetan independence. While China wants to install a successor who will accept Beijing’s control of both Tibet and Taiwan, the Dalai Lama’s latest statement emphasized his office’s “sole authority” over the selection process.

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People followed by mourners carry the coffins of Azerbaijani brothers Huseyn and Ziyaddin Safarov, who died in Russian police custody, to a cemetery in Hacibedelli, Azerbaijan, on July 1, 2025, in this still image from video.

Reuters TV/via REUTERS

2: Russia-Azerbaijan ties are fraying after the South Caucasus country said two Azeri brothers died last week after being tortured in Russian police custody. In retaliation, Azerbaijan has arrested half a dozen Russian state journalists working in the capital, Baku. The two former-Soviet countries generally get along but have had frictions over Azeri migrant labor in Russia, an Azerbaijan Airlines plane that was shot down over Russian airspace, and Moscow’s backing for Armenia in that country’s decades long conflict with Azerbaijan. The Kremlin said Azerbaijan was being “extremely emotional.”

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