Middle East Trade & Security: US and Iran traded airstrikes for a second day, with Kuwait closing airspace and Bahrain sounding missile alerts, pushing oil prices higher and raising risks for regional shipping and energy costs. South Asia Budgets & Governance: Pakistan’s NEC approved a 2026-27 development budget of 3.669tn rupees and set 4% growth, while its Economic Survey flags missed targets and a May inflation spike. South Asia Finance Politics: Nepal’s finance minister, Swarnim Wagle, welcomed investigations over alleged budget errors and challenged claims of an EV information leak. Bangladesh Fiscal Push: Bangladesh’s finance team is preparing an expansionary FY27 budget aimed at building a “welfare state,” alongside a new 3R recovery plan. Trade & Investment Deals: Saudi Arabia lifted a roughly five-year Lebanese import ban, signaling support for Beirut’s recovery; Indonesia and Canada explored deeper cooperation after ICA-CEPA. Policy for Competitiveness: Bulgaria approved an electricity compensation scheme for energy-intensive firms, tying support to decarbonization and efficiency investments. AI for Small Business: New Zealand will expand AI-powered support for small firms via AcceleratorNZ and mentor tools. Global Finance Risk: South Africa’s central bank warned rising developed-economy debt and refinancing could threaten global financial stability.