- Geopolitics Daily
- Posts
- š° E3 "snapback" risks war
š° E3 "snapback" risks war
and the IMF's role in Sri Lanka's debt crisis
Hello and welcome back.
Russia and China caution Japan over the planned US missile deployment, Haitiās Patriotic Congress calls for governance reforms to tackle systemic corruption, and Somali President Hassan Sheikh Mohamoud strikes an electoral reform deal with opposition leaders.
At the centre of todayās coverage is our lead story, Europeās snapback gamble with Iran risks war.
More details below ⤵ļø
Top 5 Stories
1ļøā£ š±š° Dissanayake faces IMF constraints as Sri Lanka struggles with debt crisis: Sri Lankaās recovery from its 2022 financial collapse has been tethered to IMF austerity, leaving civil society to bear the cost. The bailout conditionsāprivatisations, subsidy cuts, frozen public hiring, and higher taxesāhave deepened hardship, with food insecurity now affecting millions. Newly elected President Anura Kumara Dissanayake has reinstated agricultural and fishing subsidies, yet inflation, high fuel costs, and limited health spending persist. Servicing debt consumes five times more than public health, underscoring the imbalance. Civil society warns that the IMFās 17th program prioritises creditors over people, mirroring a wider Global South debt crisis where half the world spends more on interest than on education or health. Grassroots movements gathering in Sri Lanka this year demand a just recovery centred on sovereignty, food security, and social investment.
2ļøā£ š¹š š°š Thai Constitutional Court removes Prime Minister Paetongtarn Shinawatra over ethics violation: Thailandās Constitutional Court has dismissed Prime Minister Paetongtarn Shinawatra, ruling she violated ethics by placing personal ties with Cambodiaās Hun Sen above national interests. The decision, delivered after a leaked recording of a call in which she referred to Hun Sen as āuncleā and offered to ātake care ofā his requests, triggered her immediate removal. Paetongtarn apologised, calling her words a negotiating tactic, but critics accused her of undermining Thailand during a border dispute that later erupted into deadly clashes. The ruling marks the fourth time a Shinawatra has been ousted by coup or court, deepening instability within Pheu Thai. With both Paetongtarn and her predecessor Srettha Thavisin disqualified, the party faces difficulty rallying support around its remaining nominee, Chaikasem Nitisiri, while a caretaker government holds power.
3ļøā£ šøš© šŗš³ Hemedti sworn in as head of Sudanās parallel government: Mohamed Hamdan Dagalo āHemedtiā, commander of Sudanās Rapid Support Forces (RSF), was sworn in Sunday as leader of a parallel government in Nyala, South Darfur. The Sudanese Founding Alliance, a coalition dominated by the RSF, announced Abdelaziz Adam al-Hilu as Dagaloās deputy alongside a 13-member presidential council. The coalition first declared its alternative authority in July, following a February charter signed in Kenya by the RSF and allied groups. Khartoum has rejected the move, and on August 14 the UN Security Council denounced the formation of any parallel government in RSF-held areas as a violation of Sudanās sovereignty. The war between the Sudanese army and the RSF, ongoing since April 2023, has killed over 20,000 people and displaced 14 million, with independent research suggesting far higher casualties.
4ļøā£ šŗšø Trump sidelines NSC as centralised style reshapes US security decisions: When President Donald Trump ordered airstrikes on Iranās nuclear sites in June, even seasoned US diplomats were caught off guard, receiving no advance instructions on what to tell foreign governments. The silence underscored Trumpās top-down style: he has slashed National Security Council (NSC) staff from 400 to under 150, sidelined career officials, and handed the adviser role to Secretary of State Marco Rubio. Critics argue this has gutted the policy process, leaving agencies confused and weakening oversight, while allies struggle to read US intentions. Supporters say it reduces leaks and speeds up decision-making. Yet the ad hoc approach has bred freelancing by officials and left Trump reliant on a handful of confidants, making US national security more personalised than institutional.
5ļøā£ š®š± š¾šŖ Israel escalates air campaign in Yemen as Houthis deploy new weapons: The confrontation between Israel and Yemenās Houthis has entered a more dangerous phase, with both sides introducing new tactics and weaponry. After a Houthi Palestine-2 missile carrying suspected cluster munitions was intercepted near Ben Gurion Airport on 23 August, Israel launched Operation Neve Tzedek, a sweeping two-day air assault on Sanaa. Strikes hit military sites alongside energy facilities and urban infrastructure, killing at least ten and wounding 92, including women and children. A follow-up strike on 25 August reportedly killed the Houthisā prime minister during a leadership meeting. Israeli officials link the Houthisā upgraded arsenal to Iranian transfers, framing the escalation as a warning to Tehran as well. With both sides vowing further action, the cycle of attacks risks undermining fragile regional truces and deepening civilian suffering.
Major Story

š¬š§ š«š· š©šŖ š®š· šŗš³ EUROPEāS SNAPBACK GAMBLE RISKS WAR
Britain, France, and Germany have triggered the āsnapbackā mechanism, setting in motion the automatic restoration of all United Nations sanctions lifted under the 2015 Joint Comprehensive Plan of Action (JCPOA). European leaders frame the move as a bid to salvage nuclear diplomacy with Tehran. In practice, it threatens the opposite. By reviving sanctions largely at Israelās urging, the E3 have narrowed the space for negotiation and pushed the conflict further toward confrontation.
Four Immediate Consequences
The return of sanctions carries four major implications. First, the UN will demand that Iran end all uranium enrichmentāpolitically impossible in Tehran, where enrichment is seen as both a sovereign right and a national sacrifice. Second, an arms embargo will be reinstated, potentially curbing Tehranās access to defensive systems unless Russia and China defy enforcement. Third, Iranās fragile economy will deteriorate further, inflicting harsher pain on its citizens and amplifying regional instability. Finally, the āsnapbackā gives Israel political cover to intensify military strikes on Iranian facilities, legitimised by European backing.
Europeās Justification, Iranās Suspicion
European leaders argue that coercion is the only way to bring Iran back to the table and secure compliance with International Atomic Energy Agency inspections. Yet Tehran views such demands through the lens of betrayal. Sensitive nuclear data shared with the IAEA, Iranian officials argue, has been exploited by Israeli intelligence to target scientists. Coupled with recent Israeli and US bombings conducted while diplomacy was supposedly ongoing, Iran sees little reason to trust negotiations that offer no reciprocal restraint on its adversaries.
From Preventing War to Risking One
The irony is stark. When the E3 emerged in 2003, their mission was to forestall a US-led war with Iran by offering an alternative to force. Two decades later, Europeās calculus has changed. Iranās alignment with Russia in the Ukraine conflict, the collapse of EUāIran trade, and dependence on the transatlantic alliance have shifted priorities. Sanctioning Tehran now serves two purposes: punishing its partnership with Moscow and signalling loyalty to Washington and Tel Aviv. But this alignment comes at the cost of regional stability.
A Strategic Miscalculation
By triggering snapback, the E3 risks repeating the very mistakes they once sought to prevent. Coercion without a path to compromise on enrichment leaves only one trajectory: escalation. Alternatives existālinking sanctions relief to security guarantees, embedding nuclear talks within a broader regional framework, and ensuring reciprocity on all sides. Such diplomacy requires patience and political courage. Quincy Instituteās Trita Parsi writes, in 2003, Europe resisted American pressure to wage another disastrous Middle Eastern war. In 2025, it risks becoming complicit in creating one.
Practical AI for Business Leaders
The AI Report is the #1 daily read for professionals who want to lead with AI, not get left behind.
Youāll get clear, jargon-free insights you can apply across your businessāwithout needing to be technical.
400,000+ leaders are already subscribed.
š Join now and work smarter with AI.
Other News
1ļøā£ š·šŗ šØš³ šÆšµ šŗšø Russia and China warn Japan over US missile deployment: Russia and China have condemned Japanās decision to host US āTyphonā intermediate-range missiles during joint drills next month, warning it threatens regional stability. Moscow called the deployment a ādirect strategic threat,ā with Foreign Ministry spokesperson Maria Zakharova accusing Tokyo of accelerating militarisation and vowing āmilitary-technical measuresā if the plan proceeds. Beijing also urged Japan to āact prudentlyā and avoid eroding trust in Asia, stressing its opposition to any US deployment of the Typhon system. The missiles, capable of striking targets up to 480km away, will be stationed at a US Marine base in Iwakuni during the āResolute Dragonā exercises. Washington says the move strengthens deterrence, but critics argue it risks escalating tensions in a region already strained by competing great-power rivalries.
2ļøā£ šš¹ Haitian congress urges governance reforms to confront systemic corruption: Haitiās Patriotic Congress for National Rescue, led by academics and civil society, concluded a month-long consultation on June 27, producing 25 proposalsā19 addressing insecurity and six targeting governance and political transitions. While insecurity dominates public debate, experts argue corruption lies at the root of Haitiās crises, undermining investment, fueling poverty, and destabilising governance. The $2 billion PetroCaribe scandal epitomises the depth of systemic graft. Private initiatives, including small enterprises, routinely collapse under demands for kickbacks. Proposals stress the need for accountability, stronger institutions, and judicial reforms, with calls to treat large-scale embezzlement as an international crime on par with genocide. Advocates insist that without tackling entrenched corruption, efforts to curb violence or end Haitiās cycle of political instability will fail.
3ļøā£ šøš“ President Hassan Sheikh Mohamoud and opposition leaders sign electoral reform deal in Somalia: Somaliaās President Hassan Sheikh Mohamoud and four opposition leaders signed an agreement on August 25, 2025, establishing the framework for the 2026 elections. The deal builds on Parliamentās 2024 electoral law introducing universal suffrage, hailed as a historic step beyond the clan-based system but still contested by parts of the opposition. Under the agreement, the president will be elected by Parliament, while lawmakers will be chosen through nationwide direct voting. Parties securing at least 10% of seats will gain official recognition, and all sides pledged to advance a āone person, one voteā system. Mohamoud called it the opening of ādoors to state reconstruction,ā though critics, including former president Sherif Sheikh Ahmed, warn Somaliaās fragile security conditions make sweeping reforms risky.
Tips & Suggestions
Before we see you again:
We welcome your news tips and suggestions for regular sections, just let us know the stories you want to see covered here: [email protected]
Weekly Updates?
Want weekly updates as well as daily?
Subscribe to our sister publication Geopolitics Weekly here ⤵ļø
Book Shelf
Here are some books we recommend š: