Executive Summary

This month’s report focuses primarily on inflationary pressures reshaping the global economy. It will also examine related strategic developments affecting international business, including artificial intelligence and cybersecurity risks, geopolitical fragmentation, resource nationalism, energy security, supply-chain resilience, and regional economic shifts. Across sectors and regions, governments and corporations are increasingly being forced to adapt to a world in which technology, economics, and geopolitics are becoming inseparable, with AI emerging as one of the most significant long-term transformational forces.

At the macroeconomic level, the Iran war has brought higher energy, transportation, and insurance costs, which are now spreading from volatile commodities into broader core inflation across the United States, Europe, and parts of Asia…