Saudi Arabia and Pakistan have signed a mutual defence agreement during Prime Minister Shehbaz Sharif’s state visit to Riyadh, marking a significant step in their longstanding strategic partnership. A central clause of the pact states that “any aggression against either country shall be considered an aggression against both,” thereby binding Riyadh and Islamabad in collective defence. The agreement signals deepening military and security ties between the two nations at a time of shifting regional dynamics. India, however, downplayed the development, clarifying that the pact merely formalises an arrangement that has existed informally for years and was anticipated.
Trump Hails UK Visit as ‘Highest Honour’ at Banquet with King Charles III
US President Donald Trump on Wednesday (Sep 18) attended a lavish state banquet hosted by King Charles III during his second official UK state visit. Calling the trip “one of the highest honours” of his life, Trump praised the royal family and expressed deep gratitude for the invitation. King Charles, in his opening remarks, lauded Trump’s “personal commitment” to peace. Standing beside the monarch, Trump highlighted the enduring “special relationship” between the US and the UK, noting that the phrase “does not begin to do it justice” when describing the historic bonds between the two nations.
Iran Signals Willingness for ‘Fair, Balanced’ Nuclear Deal with Europe
Following fresh talks with Britain, France, and Germany over its nuclear program, Iran on Wednesday (Sep 17) expressed readiness to pursue a “fair and balanced solution”. Foreign Minister Abbas Araghchi stressed that achieving such a deal requires the E3 nations to act responsibly and independently, avoiding external influence. The call, also joined by the EU’s foreign policy chief, was held after European powers triggered a 30-day deadline for “snapback” sanctions if no agreement is reached. Germany later warned the “ball is still in Iran’s court” and pressed for “concrete actions in the coming days”.
US Fed Cuts Rates for First Time in 2025 Amid Job Market Concerns
The US Federal Reserve on Wednesday (Sep 17) reduced interest rates for the first time in 2025, citing signs of a cooling job market and risks to employment stability. The Fed announced a 25 basis point cut, bringing the benchmark lending rate to 4.0%–4.25%. Policymakers also signaled the likelihood of two more rate cuts before year’s end, a move aimed at shoring up growth and easing financial conditions. The decision reflects the Fed’s cautious approach to balancing inflation control with employment concerns amid a slowing US economy.
EU Warns India’s Russian Oil Ties Could Hurt Trade Deal
The European Union on Wednesday (Sep 17) cautioned that India’s growing closeness with Russia—through oil purchases and participation in joint military drills—could hamper efforts to deepen EU-India relations. The warning comes as Brussels pushes to finalise a trade deal with New Delhi and expand cooperation in defence and security. EU officials expressed concern that India’s Russia links may complicate alignment at a time of heightened global tensions, driven in part by US President Donald Trump’s tariff policies. Meanwhile, India and the US held talks in New Delhi on Tuesday (Sep 16) to advance a Bilateral Trade Agreement (BTA) despite Trump’s imposition of 50% tariffs on Indian goods.
