Stocks tumble, safe havens gain as Mideast war flares
Global stocks have fallen and the dollar has risen as investors, concerned over the United States' possible entry into the Israel-Iran air war, seek safe-haven assets and ditch riskier ones.
President Donald Trump kept the world guessing about whether the United States would join Israel's bombardment of Iranian nuclear sites, telling reporters outside the White House on Thursday, "I may do it. I may not do it."
The Wall Street Journal reported that Trump had told senior aides he approved attack plans on Iran but was holding off on giving the final order to see if Tehran would abandon its nuclear programme.
In Europe, stocks fell for a third day on Thursday, leaving the STOXX 600 down nearly 2.5 per cent on the week, set for its biggest week-on-week decline since the tariff-induced turmoil of April.
US S&P 500 futures fell 0.6 per cent, although most US markets - including Wall Street and the Treasury market - will be closed on Thursday for a public holiday.
"Market participants remain edgy and uncertain," said Kyle Rodda, senior financial markets analyst at Capital.com.
Speculation was rife "that the US will intervene, something that would mark a material escalation and could invite direct retaliation against the US by Iran", he said.
"Such a scenario would raise the risk of a greater regional conflict, with implications for global energy supply and probably economic growth."
Much of the recent nervousness in markets has been centred around crude supply shocks from the Middle East, which has driven the price of crude oil up by 11 per cent in a week.
Brent crude rose nearly one per cent to $US77.40 a barrel, close to its highest since January.
Gold, which tends to struggle when the dollar gains, pared earlier losses to trade at $US3,366 an ounce.
The dollar itself rose broadly, leaving the euro down 0.1 per cent at $US1.1466 and the Australian and New Zealand dollars - both risk-linked currencies - down 0.7 per cent and one per cent, respectively.
Overnight, the Federal Reserve delivered some mixed signals to markets. Much to Trump's displeasure, policymakers held rates steady as expected and retained projections for two quarter-point rate cuts this year.
However, Fed chair Jerome Powell struck a cautious note about further easing ahead, saying at his media conference later that he expected "meaningful" inflation ahead as a result of Trump's aggressive trade tariffs.
Markets will now look to a string of central bank policy decisions out of Europe for any possible catalysts.
The Swiss National Bank cut interest rates to zero, as expected, leaving the franc to drift as markets had priced in a roughly-20 per cent chance of a half-point cut.
The franc, which has been a major beneficiary of safe-haven buying this year, was last steady against both the dollar, at 0.819 francs, and the euro at 0.9395 francs.
The Bank of England is up next and is expected to keep UK rates unchanged.
Data on Wednesday showed inflation cooled as expected in May, although food prices shot up and policymakers will be considering the potential impact from higher energy prices in light of the Israel-Iran war.
Sterling edged 0.1 per cent lower to $US1.341.
Global stocks have fallen and the dollar has risen as investors, concerned over the United States' possible entry into the Israel-Iran air war, seek safe-haven assets and ditch riskier ones.
President Donald Trump kept the world guessing about whether the United States would join Israel's bombardment of Iranian nuclear sites, telling reporters outside the White House on Thursday, "I may do it. I may not do it."
The Wall Street Journal reported that Trump had told senior aides he approved attack plans on Iran but was holding off on giving the final order to see if Tehran would abandon its nuclear programme.
In Europe, stocks fell for a third day on Thursday, leaving the STOXX 600 down nearly 2.5 per cent on the week, set for its biggest week-on-week decline since the tariff-induced turmoil of April.
US S&P 500 futures fell 0.6 per cent, although most US markets - including Wall Street and the Treasury market - will be closed on Thursday for a public holiday.
"Market participants remain edgy and uncertain," said Kyle Rodda, senior financial markets analyst at Capital.com.
Speculation was rife "that the US will intervene, something that would mark a material escalation and could invite direct retaliation against the US by Iran", he said.
"Such a scenario would raise the risk of a greater regional conflict, with implications for global energy supply and probably economic growth."
Much of the recent nervousness in markets has been centred around crude supply shocks from the Middle East, which has driven the price of crude oil up by 11 per cent in a week.
Brent crude rose nearly one per cent to $US77.40 a barrel, close to its highest since January.
Gold, which tends to struggle when the dollar gains, pared earlier losses to trade at $US3,366 an ounce.
The dollar itself rose broadly, leaving the euro down 0.1 per cent at $US1.1466 and the Australian and New Zealand dollars - both risk-linked currencies - down 0.7 per cent and one per cent, respectively.
Overnight, the Federal Reserve delivered some mixed signals to markets. Much to Trump's displeasure, policymakers held rates steady as expected and retained projections for two quarter-point rate cuts this year.
However, Fed chair Jerome Powell struck a cautious note about further easing ahead, saying at his media conference later that he expected "meaningful" inflation ahead as a result of Trump's aggressive trade tariffs.
Markets will now look to a string of central bank policy decisions out of Europe for any possible catalysts.
The Swiss National Bank cut interest rates to zero, as expected, leaving the franc to drift as markets had priced in a roughly-20 per cent chance of a half-point cut.
The franc, which has been a major beneficiary of safe-haven buying this year, was last steady against both the dollar, at 0.819 francs, and the euro at 0.9395 francs.
The Bank of England is up next and is expected to keep UK rates unchanged.
Data on Wednesday showed inflation cooled as expected in May, although food prices shot up and policymakers will be considering the potential impact from higher energy prices in light of the Israel-Iran war.
Sterling edged 0.1 per cent lower to $US1.341.
Global stocks have fallen and the dollar has risen as investors, concerned over the United States' possible entry into the Israel-Iran air war, seek safe-haven assets and ditch riskier ones.
President Donald Trump kept the world guessing about whether the United States would join Israel's bombardment of Iranian nuclear sites, telling reporters outside the White House on Thursday, "I may do it. I may not do it."
The Wall Street Journal reported that Trump had told senior aides he approved attack plans on Iran but was holding off on giving the final order to see if Tehran would abandon its nuclear programme.
In Europe, stocks fell for a third day on Thursday, leaving the STOXX 600 down nearly 2.5 per cent on the week, set for its biggest week-on-week decline since the tariff-induced turmoil of April.
US S&P 500 futures fell 0.6 per cent, although most US markets - including Wall Street and the Treasury market - will be closed on Thursday for a public holiday.
"Market participants remain edgy and uncertain," said Kyle Rodda, senior financial markets analyst at Capital.com.
Speculation was rife "that the US will intervene, something that would mark a material escalation and could invite direct retaliation against the US by Iran", he said.
"Such a scenario would raise the risk of a greater regional conflict, with implications for global energy supply and probably economic growth."
Much of the recent nervousness in markets has been centred around crude supply shocks from the Middle East, which has driven the price of crude oil up by 11 per cent in a week.
Brent crude rose nearly one per cent to $US77.40 a barrel, close to its highest since January.
Gold, which tends to struggle when the dollar gains, pared earlier losses to trade at $US3,366 an ounce.
The dollar itself rose broadly, leaving the euro down 0.1 per cent at $US1.1466 and the Australian and New Zealand dollars - both risk-linked currencies - down 0.7 per cent and one per cent, respectively.
Overnight, the Federal Reserve delivered some mixed signals to markets. Much to Trump's displeasure, policymakers held rates steady as expected and retained projections for two quarter-point rate cuts this year.
However, Fed chair Jerome Powell struck a cautious note about further easing ahead, saying at his media conference later that he expected "meaningful" inflation ahead as a result of Trump's aggressive trade tariffs.
Markets will now look to a string of central bank policy decisions out of Europe for any possible catalysts.
The Swiss National Bank cut interest rates to zero, as expected, leaving the franc to drift as markets had priced in a roughly-20 per cent chance of a half-point cut.
The franc, which has been a major beneficiary of safe-haven buying this year, was last steady against both the dollar, at 0.819 francs, and the euro at 0.9395 francs.
The Bank of England is up next and is expected to keep UK rates unchanged.
Data on Wednesday showed inflation cooled as expected in May, although food prices shot up and policymakers will be considering the potential impact from higher energy prices in light of the Israel-Iran war.
Sterling edged 0.1 per cent lower to $US1.341.
Global stocks have fallen and the dollar has risen as investors, concerned over the United States' possible entry into the Israel-Iran air war, seek safe-haven assets and ditch riskier ones.
President Donald Trump kept the world guessing about whether the United States would join Israel's bombardment of Iranian nuclear sites, telling reporters outside the White House on Thursday, "I may do it. I may not do it."
The Wall Street Journal reported that Trump had told senior aides he approved attack plans on Iran but was holding off on giving the final order to see if Tehran would abandon its nuclear programme.
In Europe, stocks fell for a third day on Thursday, leaving the STOXX 600 down nearly 2.5 per cent on the week, set for its biggest week-on-week decline since the tariff-induced turmoil of April.
US S&P 500 futures fell 0.6 per cent, although most US markets - including Wall Street and the Treasury market - will be closed on Thursday for a public holiday.
"Market participants remain edgy and uncertain," said Kyle Rodda, senior financial markets analyst at Capital.com.
Speculation was rife "that the US will intervene, something that would mark a material escalation and could invite direct retaliation against the US by Iran", he said.
"Such a scenario would raise the risk of a greater regional conflict, with implications for global energy supply and probably economic growth."
Much of the recent nervousness in markets has been centred around crude supply shocks from the Middle East, which has driven the price of crude oil up by 11 per cent in a week.
Brent crude rose nearly one per cent to $US77.40 a barrel, close to its highest since January.
Gold, which tends to struggle when the dollar gains, pared earlier losses to trade at $US3,366 an ounce.
The dollar itself rose broadly, leaving the euro down 0.1 per cent at $US1.1466 and the Australian and New Zealand dollars - both risk-linked currencies - down 0.7 per cent and one per cent, respectively.
Overnight, the Federal Reserve delivered some mixed signals to markets. Much to Trump's displeasure, policymakers held rates steady as expected and retained projections for two quarter-point rate cuts this year.
However, Fed chair Jerome Powell struck a cautious note about further easing ahead, saying at his media conference later that he expected "meaningful" inflation ahead as a result of Trump's aggressive trade tariffs.
Markets will now look to a string of central bank policy decisions out of Europe for any possible catalysts.
The Swiss National Bank cut interest rates to zero, as expected, leaving the franc to drift as markets had priced in a roughly-20 per cent chance of a half-point cut.
The franc, which has been a major beneficiary of safe-haven buying this year, was last steady against both the dollar, at 0.819 francs, and the euro at 0.9395 francs.
The Bank of England is up next and is expected to keep UK rates unchanged.
Data on Wednesday showed inflation cooled as expected in May, although food prices shot up and policymakers will be considering the potential impact from higher energy prices in light of the Israel-Iran war.
Sterling edged 0.1 per cent lower to $US1.341.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Advertiser
5 hours ago
- The Advertiser
Stocks tumble, safe havens gain as Mideast war flares
Global stocks have fallen and the dollar has risen as investors, concerned over the United States' possible entry into the Israel-Iran air war, seek safe-haven assets and ditch riskier ones. President Donald Trump kept the world guessing about whether the United States would join Israel's bombardment of Iranian nuclear sites, telling reporters outside the White House on Thursday, "I may do it. I may not do it." The Wall Street Journal reported that Trump had told senior aides he approved attack plans on Iran but was holding off on giving the final order to see if Tehran would abandon its nuclear programme. In Europe, stocks fell for a third day on Thursday, leaving the STOXX 600 down nearly 2.5 per cent on the week, set for its biggest week-on-week decline since the tariff-induced turmoil of April. US S&P 500 futures fell 0.6 per cent, although most US markets - including Wall Street and the Treasury market - will be closed on Thursday for a public holiday. "Market participants remain edgy and uncertain," said Kyle Rodda, senior financial markets analyst at Speculation was rife "that the US will intervene, something that would mark a material escalation and could invite direct retaliation against the US by Iran", he said. "Such a scenario would raise the risk of a greater regional conflict, with implications for global energy supply and probably economic growth." Much of the recent nervousness in markets has been centred around crude supply shocks from the Middle East, which has driven the price of crude oil up by 11 per cent in a week. Brent crude rose nearly one per cent to $US77.40 a barrel, close to its highest since January. Gold, which tends to struggle when the dollar gains, pared earlier losses to trade at $US3,366 an ounce. The dollar itself rose broadly, leaving the euro down 0.1 per cent at $US1.1466 and the Australian and New Zealand dollars - both risk-linked currencies - down 0.7 per cent and one per cent, respectively. Overnight, the Federal Reserve delivered some mixed signals to markets. Much to Trump's displeasure, policymakers held rates steady as expected and retained projections for two quarter-point rate cuts this year. However, Fed chair Jerome Powell struck a cautious note about further easing ahead, saying at his media conference later that he expected "meaningful" inflation ahead as a result of Trump's aggressive trade tariffs. Markets will now look to a string of central bank policy decisions out of Europe for any possible catalysts. The Swiss National Bank cut interest rates to zero, as expected, leaving the franc to drift as markets had priced in a roughly-20 per cent chance of a half-point cut. The franc, which has been a major beneficiary of safe-haven buying this year, was last steady against both the dollar, at 0.819 francs, and the euro at 0.9395 francs. The Bank of England is up next and is expected to keep UK rates unchanged. Data on Wednesday showed inflation cooled as expected in May, although food prices shot up and policymakers will be considering the potential impact from higher energy prices in light of the Israel-Iran war. Sterling edged 0.1 per cent lower to $US1.341. Global stocks have fallen and the dollar has risen as investors, concerned over the United States' possible entry into the Israel-Iran air war, seek safe-haven assets and ditch riskier ones. President Donald Trump kept the world guessing about whether the United States would join Israel's bombardment of Iranian nuclear sites, telling reporters outside the White House on Thursday, "I may do it. I may not do it." The Wall Street Journal reported that Trump had told senior aides he approved attack plans on Iran but was holding off on giving the final order to see if Tehran would abandon its nuclear programme. In Europe, stocks fell for a third day on Thursday, leaving the STOXX 600 down nearly 2.5 per cent on the week, set for its biggest week-on-week decline since the tariff-induced turmoil of April. US S&P 500 futures fell 0.6 per cent, although most US markets - including Wall Street and the Treasury market - will be closed on Thursday for a public holiday. "Market participants remain edgy and uncertain," said Kyle Rodda, senior financial markets analyst at Speculation was rife "that the US will intervene, something that would mark a material escalation and could invite direct retaliation against the US by Iran", he said. "Such a scenario would raise the risk of a greater regional conflict, with implications for global energy supply and probably economic growth." Much of the recent nervousness in markets has been centred around crude supply shocks from the Middle East, which has driven the price of crude oil up by 11 per cent in a week. Brent crude rose nearly one per cent to $US77.40 a barrel, close to its highest since January. Gold, which tends to struggle when the dollar gains, pared earlier losses to trade at $US3,366 an ounce. The dollar itself rose broadly, leaving the euro down 0.1 per cent at $US1.1466 and the Australian and New Zealand dollars - both risk-linked currencies - down 0.7 per cent and one per cent, respectively. Overnight, the Federal Reserve delivered some mixed signals to markets. Much to Trump's displeasure, policymakers held rates steady as expected and retained projections for two quarter-point rate cuts this year. However, Fed chair Jerome Powell struck a cautious note about further easing ahead, saying at his media conference later that he expected "meaningful" inflation ahead as a result of Trump's aggressive trade tariffs. Markets will now look to a string of central bank policy decisions out of Europe for any possible catalysts. The Swiss National Bank cut interest rates to zero, as expected, leaving the franc to drift as markets had priced in a roughly-20 per cent chance of a half-point cut. The franc, which has been a major beneficiary of safe-haven buying this year, was last steady against both the dollar, at 0.819 francs, and the euro at 0.9395 francs. The Bank of England is up next and is expected to keep UK rates unchanged. Data on Wednesday showed inflation cooled as expected in May, although food prices shot up and policymakers will be considering the potential impact from higher energy prices in light of the Israel-Iran war. Sterling edged 0.1 per cent lower to $US1.341. Global stocks have fallen and the dollar has risen as investors, concerned over the United States' possible entry into the Israel-Iran air war, seek safe-haven assets and ditch riskier ones. President Donald Trump kept the world guessing about whether the United States would join Israel's bombardment of Iranian nuclear sites, telling reporters outside the White House on Thursday, "I may do it. I may not do it." The Wall Street Journal reported that Trump had told senior aides he approved attack plans on Iran but was holding off on giving the final order to see if Tehran would abandon its nuclear programme. In Europe, stocks fell for a third day on Thursday, leaving the STOXX 600 down nearly 2.5 per cent on the week, set for its biggest week-on-week decline since the tariff-induced turmoil of April. US S&P 500 futures fell 0.6 per cent, although most US markets - including Wall Street and the Treasury market - will be closed on Thursday for a public holiday. "Market participants remain edgy and uncertain," said Kyle Rodda, senior financial markets analyst at Speculation was rife "that the US will intervene, something that would mark a material escalation and could invite direct retaliation against the US by Iran", he said. "Such a scenario would raise the risk of a greater regional conflict, with implications for global energy supply and probably economic growth." Much of the recent nervousness in markets has been centred around crude supply shocks from the Middle East, which has driven the price of crude oil up by 11 per cent in a week. Brent crude rose nearly one per cent to $US77.40 a barrel, close to its highest since January. Gold, which tends to struggle when the dollar gains, pared earlier losses to trade at $US3,366 an ounce. The dollar itself rose broadly, leaving the euro down 0.1 per cent at $US1.1466 and the Australian and New Zealand dollars - both risk-linked currencies - down 0.7 per cent and one per cent, respectively. Overnight, the Federal Reserve delivered some mixed signals to markets. Much to Trump's displeasure, policymakers held rates steady as expected and retained projections for two quarter-point rate cuts this year. However, Fed chair Jerome Powell struck a cautious note about further easing ahead, saying at his media conference later that he expected "meaningful" inflation ahead as a result of Trump's aggressive trade tariffs. Markets will now look to a string of central bank policy decisions out of Europe for any possible catalysts. The Swiss National Bank cut interest rates to zero, as expected, leaving the franc to drift as markets had priced in a roughly-20 per cent chance of a half-point cut. The franc, which has been a major beneficiary of safe-haven buying this year, was last steady against both the dollar, at 0.819 francs, and the euro at 0.9395 francs. The Bank of England is up next and is expected to keep UK rates unchanged. Data on Wednesday showed inflation cooled as expected in May, although food prices shot up and policymakers will be considering the potential impact from higher energy prices in light of the Israel-Iran war. Sterling edged 0.1 per cent lower to $US1.341. Global stocks have fallen and the dollar has risen as investors, concerned over the United States' possible entry into the Israel-Iran air war, seek safe-haven assets and ditch riskier ones. President Donald Trump kept the world guessing about whether the United States would join Israel's bombardment of Iranian nuclear sites, telling reporters outside the White House on Thursday, "I may do it. I may not do it." The Wall Street Journal reported that Trump had told senior aides he approved attack plans on Iran but was holding off on giving the final order to see if Tehran would abandon its nuclear programme. In Europe, stocks fell for a third day on Thursday, leaving the STOXX 600 down nearly 2.5 per cent on the week, set for its biggest week-on-week decline since the tariff-induced turmoil of April. US S&P 500 futures fell 0.6 per cent, although most US markets - including Wall Street and the Treasury market - will be closed on Thursday for a public holiday. "Market participants remain edgy and uncertain," said Kyle Rodda, senior financial markets analyst at Speculation was rife "that the US will intervene, something that would mark a material escalation and could invite direct retaliation against the US by Iran", he said. "Such a scenario would raise the risk of a greater regional conflict, with implications for global energy supply and probably economic growth." Much of the recent nervousness in markets has been centred around crude supply shocks from the Middle East, which has driven the price of crude oil up by 11 per cent in a week. Brent crude rose nearly one per cent to $US77.40 a barrel, close to its highest since January. Gold, which tends to struggle when the dollar gains, pared earlier losses to trade at $US3,366 an ounce. The dollar itself rose broadly, leaving the euro down 0.1 per cent at $US1.1466 and the Australian and New Zealand dollars - both risk-linked currencies - down 0.7 per cent and one per cent, respectively. Overnight, the Federal Reserve delivered some mixed signals to markets. Much to Trump's displeasure, policymakers held rates steady as expected and retained projections for two quarter-point rate cuts this year. However, Fed chair Jerome Powell struck a cautious note about further easing ahead, saying at his media conference later that he expected "meaningful" inflation ahead as a result of Trump's aggressive trade tariffs. Markets will now look to a string of central bank policy decisions out of Europe for any possible catalysts. The Swiss National Bank cut interest rates to zero, as expected, leaving the franc to drift as markets had priced in a roughly-20 per cent chance of a half-point cut. The franc, which has been a major beneficiary of safe-haven buying this year, was last steady against both the dollar, at 0.819 francs, and the euro at 0.9395 francs. The Bank of England is up next and is expected to keep UK rates unchanged. Data on Wednesday showed inflation cooled as expected in May, although food prices shot up and policymakers will be considering the potential impact from higher energy prices in light of the Israel-Iran war. Sterling edged 0.1 per cent lower to $US1.341.
West Australian
6 hours ago
- West Australian
WA Budget 2025: GST win coming for the west as fight looms over lucrative deal
WA will see its GST share lift above the legislated 75 cent floor for the first time the Budget has predicted, as the Government prepares to argue for the 2018 deal which has proven an economic boon for the State. Ahead of a Productivity Commission-lead review next year, Treasury has made concerns clear over the Commonwealth Grants Commission's process for calculating the annual handouts to the States, including outdated references to the pandemic. Under the fair share deal, which mandates WA receives 75 cents for every dollar, from 2026-27 the State's GST will be weighted to NSW's share, putting WA's slice of the national fund at 82 cents in the dollar — the highest point in more than a decade. Without the deal, WA's share would have fallen to as low as 18 cents in the coming financial year. The Budget made the argument that the cost of maintaining WA's share above the floor — a constant gripe for other State Governments — was clearly outweighed by the value of the State's iron ore industry. 'Every State, not just Western Australia, has benefited from high iron ore prices,' the Budget states 'The other States can now expect to receive about $30 billion extra GST over 2020-21 to 2028-29, because of the higher than expected iron ore prices to date. 'The three largest iron ore miners paid $17 billion to the Commonwealth in company tax in 2023-24 on its Western Australian operations, while the cost of the no-worse-off guarantee was only $5 billion that year.' But a recent review of the calculations used by the Commission drew criticism from the State Government, for failing to consider 'For example, the CGC's decision to include COVID-19 business support and health expenses resulted in States that recorded higher expenses receiving higher GST grants,' the budget read. 'This method change does not acknowledge the different policy approaches of States when responding to COVID-19, and penalises States that took actions that prevented the spread of COVID-19 in the community.' In her Budget speech, Treasurer Rita Saffioti stood by the deal, saying the global uncertainties were a 'constant reminder' the agreement needed to be protected. 'It is again important to point out that despite the irrational and absurd commentary from many over east, WA will still only receive 75 per cent of our population share of GST this year,' she said. 'In fact Members, our Treasury officials have estimated that Western Australia's net contribution to the other States last financial year was $39 billion. That is, $13,000 that every Western Australian is contributing to the rest of the nation.'
Sydney Morning Herald
7 hours ago
- Sydney Morning Herald
Snubs, subs and Trump: Albanese's NATO dilemma
Between the US review of the AUKUS submarine deal, the imposition of tariffs on Australian exports, and a call from US Defence Secretary Pete Hegseth for Australia to almost double defence spending to 3.5 per cent of GDP, the Australia-US relationship is in relatively poor state of repair at the leader-to-leader level. Loading There are risks for Albanese in spending just a couple of days in Canberra before getting back on the plane to be in The Hague for next Tuesday's summit, only to potentially be embarrassed by missing out again on a meeting with the unreliable president – though the risk is not as great as it might at first seem. The Australian prime minister will walk straight into a debate about US demands that European NATO members lift their defence spending to as much as 5 per cent – not a conversation Albanese will want to be part of, given Hegseth's comments and the fact that we currently spend about 2 per cent. And while some members of the government (and plenty of Australians) do not like Trump and think chasing a meeting amounts to kowtowing, they are wrong. The United States is Australia's most important security partner, it will be for the foreseeable future, and no matter who is in the White House, the Australian prime minister needs a strong personal relationship with the president. The federal opposition and other government critics sniff an opportunity to damage the prime minister, whether he stays in Australia and avoids a possible cancellation or if he goes and misses out again. This will not guide the prime minister's decision. At the leader-to-leader level, personal relationships are enormously consequential – they can be the 5 per cent extra that secures a tariff concession or a bigger quota of beef exports. Britain's Starmer, Canada's Mark Carney and Italy's Giorgia Meloni, to give just three examples, have all secured benefits for their nations by moving early to meet the 47th president. Albanese is lagging, but the situation is reparable. Loading Even if Trump doesn't turn up, or if he were to cancel on Albanese again, the benefit of being there outweighs the risk. As Trump's sudden departure from the G7 reminded America's allies (as if any reminder were necessary), there are at least another three years of living in an 'America First' world – which only increases the importance of multilateral organisations. US allies have two choices: they can wring their hands about America's absent leadership, or they can get on with the quiet rebuilding of international institutions. Starmer and Macron are two leaders who have signed up to that rebuild. Albanese is another, though he knows the US relationship needs a patch and paint. Two moments at the G7 summit highlighted the benefits of turning up this week, and of going again next week. The first came just after 9am on the final day of the summit when Carney welcomed Ukrainian President Volodymyr Zelensky. In his low, even voice, Zelensky outlined the latest carnage visited on Kyiv by the Russians. The capital had been smashed, he said, with 138 people injured and another 12 killed by murderous drones. But the point was not the death toll. Rather, it was the quiet dignity with which Zelensky spoke and the fact that it was face-to-face, allowing a moment for each leader to look the other in the eye. Upon such moments, friendships are forged and alliances are built. The second moment came a few hours later, during the 'family photo' of world leaders. As Albanese joined world leaders on stage, he walked straight up to Zelensky and, without saying a word, the pair embraced. That gut-instinct moment, more than any words the prime minister spoke at the summit, mattered. One of Albanese's greatest strengths over more than three decades in politics has been his ability to build and maintain a broad web of personal relationships. He's a 'relationships guy' in much the same way that Trump has been throughout his careers. Albanese and Trump will get a chance to look each other in the eye some time soon, whether it is in Holland, at the UN General Assembly in September, or at some other moment in the not-too-distant future. At that point, the questions over the relationship are likely to evaporate. As he landed back in Australia in the early hours of Thursday morning, Albanese had not made up his mind on whether to attend the summit. My tip is that if Albanese travels to Holland he will focus, at least in his public comments, on the importance of the global rules-based order, regardless of what the president does.
