Weekly Update (Oct 27th –Nov 2nd, 2025)

United States: Congress passes stopgap funding bill ahead of shutdown deadline

On 31 October, US lawmakers approved a short-term funding bill just hours before a midnight deadline, narrowly avoiding a partial government shutdown. The vote was the result of days of internal disagreement regarding spending priorities, with defence allocations and ongoing support for Ukraine emerging as significant points of contention. The agreement guaranteed the continuity of federal operations. Analysts observed the persistent reliance on last-minute measures continue to reveal significant divisions within Congress and raises concerns about long-term fiscal stability.

Middle East: Iran and Saudi Arabia hold quiet talks in Muscat

During the week, Iranian and Saudi officials conducted low-profile discussions in Muscat, according to Gulf diplomatic sources, marking a further step in ongoing efforts to manage regional tensions. Although no formal agreements were announced, the talks focused on containing spillover risks linked to Gaza and Red Sea shipping routes. Observers described the engagement as pragmatic rather than transformative, reflecting a shared interest in de-escalation despite continued rivalry through regional proxies.

Europe: Germany’s coalition stalls over revised federal budget

In late October, Germany’s governing coalition struggled to reach agreement on a revised federal budget after a constitutional court ruling constrained the use of off-budget financing. Prolonged negotiations unsettled investor sentiment and delayed decisions on defence and energy-transition spending. The impasse underscored the political and economic challenges facing Europe’s largest economy, with potential implications for broader EU fiscal coordination.