A Year-End Review by Diplomatic Watch
As 2025 comes to an end, our team at Diplomatic Watch looks back on a year that delivered remarkable progress alongside painful setbacks. The world saw strong economic growth, easing inflation, record-breaking stock markets, millions of new technology-driven jobs, and diplomatic efforts that stopped several conflicts from escalating. Africa and Asia also recorded important peace agreements that shifted regional dynamics. But the same twelve months brought wildfires and floods that caused historic damage, deadly election-related violence, costly trade wars, the longest U.S. government shutdown on record, major cuts to foreign aid that hit vulnerable nations hard, and a short but intense war between Israel and Iran — a conflict that pulled in the United States, first as a mediator and later through strikes on key Iranian nuclear sites.
This review offers a clear, balanced look at the events that defined 2025 and the impact they left on the world.
Politics: Many Countries Faced Trouble and Unrest
2025 was a hard year for democracy, especially in Africa. But changes in U.S. policy also shook the world, like cuts to foreign aid and new pressures on global partners.
Soldiers took power in several countries. In November, the army in Guinea-Bissau arrested the president and closed parliament. This left markets quiet and families scared, as people remembered past coups in their history. In October, the military removed the president of Madagascar after weeks of protests about poverty and corruption. Young people led those marches, demanding jobs and fair leaders. In December, a group of soldiers in Benin tried to take over the government but were stopped in less than one hour. These events showed how weak some governments are when people are angry about money problems.
The Sahel region in Africa – countries like Mali, Niger, Burkina Faso, Sudan, and Guinea – is now ruled by military leaders instead of elected presidents. More than 112 million people live under governments that keep pushing back elections. This has made life harder, with less food and more fights in villages.
The biggest political story in Africa was the election in Tanzania on 29 October 2025. President Samia Suluhu Hassan won with almost 98% of the votes. The main opposition party was not allowed to take part, and its leader was already in prison. Many people said the election was not fair – polling stations were empty, but the government claimed high turnout. When the results came out, thousands took to the streets in cities like Dar es Salaam and Arusha. They burned flags and blocked roads, shouting for freedom. Police fired live bullets and tear gas. The internet was turned off for days to stop news from spreading. At least 300 people died, including young protesters and bystanders, and more than 2,000 were arrested. Families mourned lost sons and daughters, and schools closed as fear spread. The African Union said the election was not free, but nothing major changed. This sparked talks across Africa about how leaders hold onto power.
Other important elections (in Ghana, Senegal, Mexico, Indonesia, and the UK) actually happened in 2024, but their results kept affecting life in 2025, like new plans for jobs and security.
In the United States, President Donald Trump’s return to office brought big changes. On January 20, he signed orders to review and cut foreign aid. This led to the suspension of much of the U.S. Agency for International Development (USAID) funding – about $44 billion frozen at first. By July, USAID was mostly shut down and moved under the State Department. This hurt health programs in places like the Democratic Republic of Congo, where Ebola fights and malaria help stopped suddenly. In Nigeria, hospitals lost money for vaccines, and thousands of children missed treatments. A U.S. judge called the cuts unlawful in March, saying they broke rules set by Congress. But the damage was done – millions lost help for food, schools, and medicine. Critics said it made the U.S. look less caring, while Trump called it a way to fix “waste.”
Economy: Records in Money, but Life Stayed Expensive for Many
Rich people and companies made a lot of money in 2025, but ordinary families still struggled with high prices. New U.S. trade rules made things worse.
Gold reached a new record price of over $4,300 per ounce. People bought it to stay safe during uncertain times. Bitcoin went above $124,000 for a short time, exciting young investors, but then fell back to around $100,000. Stock markets in the USA, Japan, and the UK hit their highest points ever – the S&P 500 over 6,800, Nikkei over 50,000, FTSE over 9,400. Tech and defense companies led the way.
Inflation went down in rich countries – around 2–3% – so prices rose slower. But food and fuel stayed very expensive in Africa and Latin America, around 7–10%, hurting poor families the most.
The big economic story was the U.S. trade war. Starting in February, President Trump put 25% tariffs – extra taxes – on goods from Canada, Mexico, and China. This grew in April with “reciprocal tariffs” on over 90 countries, called “Liberation Day.” Cars, steel, and electronics cost more, adding about $1,100 to what each U.S. family paid. World trade slowed, and factories in Mexico and Canada lost jobs. China fought back with its own taxes, making phones and clothes pricier everywhere. The IMF said this could cut global growth by 1%. Workers in auto plants from Detroit to Guadalajara worried about layoffs, and shoppers saw empty shelves. Some deals, like with Japan in July, lowered tariffs a bit, but the fights continued all year.
War and Conflict: Old Wars Continued, New Fights Started – A Big One in the Middle East
No big war ended in 2025, and a new one exploded in the Middle East.
The war between Russia and Ukraine entered its fourth year. Millions of Ukrainians are still living away from home as refugees, and the country’s economy shrank again by about 6%. Families in Kyiv and Kharkiv faced blackouts and shortages, with aid groups struggling after U.S. cuts.
In April, a terror attack in Kashmir killed 26 tourists. India and Pakistan fired missiles at each other for several days. The world worried about nuclear weapons, but the fighting stopped after one week, thanks to quick talks.
In West Africa, armed groups kept attacking villages. Thousands died and millions had to leave their homes, making hunger worse.
The biggest shock was the 12-day war between Israel and Iran, starting June 13. It grew from years of secret fights and the 2023 Hamas attack on Israel. Iran supported groups like Hamas in Gaza, Hezbollah in Lebanon, and the Houthis in Yemen – called the “Axis of Resistance.” These terrorists fired rockets at Israel, killing hundreds. Israel hit back hard, weakening Hamas leaders in Gaza and Hezbollah in Lebanon. By 2025, Iran felt weaker and closer to building a nuclear bomb, with enough uranium for nine weapons, according to the UN’s atomic agency.
Israel struck first on June 13, bombing Iranian military bases, killing top generals and nuclear scientists. Iran fired hundreds of missiles at Israel, but most were stopped by defenses. President Trump first tried mediation, giving Iran two months for a nuclear deal in April, but talks failed. As the war grew, the U.S. got involved to help Israel. On June 22, after warnings to stop, U.S. planes bombed three key Iranian nuclear sites: Fordow (buried in a mountain), Natanz, and Isfahan. They used huge “bunker buster” bombs from B-2 stealth bombers – the first time ever on Iran. Trump said it “obliterated” the sites, setting back Iran’s program by months or years. Iran fired back at a U.S. base in Qatar, but no Americans died.
The war killed over 450 in Iran and 29 in Israel. Terror groups like the Houthis kept attacking ships in the Red Sea, disrupting trade. A ceasefire came on June 24, pushed by Trump, but tensions stayed high. UN leaders called it a “dangerous turn,” fearing more fights. Families in Tehran hid in bunkers, while in Tel Aviv, sirens wailed nightly. This war changed the Middle East, making Iran more united but weaker, and pulling the U.S. deeper in despite Trump’s promises to stay out.
Diplomacy: Leaders Talked and Sometimes Found Solutions
Even with so much fighting, some countries managed to talk and make agreements. But the Israel-Iran war tested everyone.
Ethiopia, Eritrea, Djibouti, and Somalia opened some borders again and agreed to work together against pirates. This helped trade grow by billions, letting fishermen and farmers move goods safely.
Japan, China, the Philippines, and Vietnam started meeting regularly about sea problems. The number of clashes dropped by 22%, easing fears in busy shipping lanes.
China and the European Union signed a new trade agreement at the end of the year to avoid bigger taxes, calming some trade war worries.
A few small peace deals were signed in Congo and the Middle East, but most of them are still very weak and could break easily. After the Israel-Iran war, Trump mediated the ceasefire, but Russia offered help too – which he turned down. The UN pushed for talks on Iran’s nuclear work, but Iran said no without ending sanctions.
Natural Disasters: The Worst Weather Year in History
2025 was the most expensive year ever for weather disasters – more than $200 billion in damage. Climate change made storms and heat stronger.
Heatwaves killed thousands in India and Pakistan – over 19,000 in India alone, with people fainting in fields and cities without power. Europe lost billions of euros in crops because of drought, hurting farmers who watched rivers dry up.
Heavy monsoon rains caused floods that forced more than 11 million people from their homes in India, Bangladesh, and Nepal. Homes washed away, and kids lost schoolbooks in the mud. Four big cyclones hit the Indian Ocean, destroying villages in Yemen and India.
Wildfires burned almost 10 million hectares of land in the USA and Canada – the biggest area ever – and a new record in Europe too. Smoke choked cities like Los Angeles, sending thousands to hospitals.
Business and Technology: New Rules for AI, New Factories in New Places
More than 50 countries made new laws to control artificial intelligence, to stop misuse like fake videos in elections.
Companies spent over $120 billion to follow these rules, creating jobs in safety checks.
Many factories moved from China to countries like Vietnam, India, and Mexico because of the trade war. This brought $84 billion to Southeast Asia and $37 billion to India, giving workers new chances but also more competition.
Investors put $410 billion into new companies, especially ones working on AI, clean energy, and health. This helped fight climate problems, like better batteries for solar power.
The Historic U.S. Government Shutdown
The biggest political drama inside the United States was the government shutdown that started on 20 September 2025 and lasted 38 days – the longest in American history.
It happened because Congress and President Trump could not agree on the new budget. Republicans wanted huge cuts to foreign aid, climate programs, and health services. Democrats refused. When the deadline came, almost all non-essential government offices closed.
Other Big Moments That Brought People Joy
- The FIFA Women’s World Cup in Australia and New Zealand was watched by almost 2 billion people – a new record. It showed strong women athletes from 32 countries, inspiring girls worldwide.
- Several spacecraft and private companies landed safely on the Moon, testing new tech for future trips.
- Travel returned to normal: 1.6 billion international trips, more than before the pandemic. Families reunited, and tourists boosted small towns.
What We Learned from 2025
The world is connected. A bad election in one country, a fire in another, or new taxes in the USA can change life for people everywhere. The trade war made iPhones cost $2,300 in some places, hurting shoppers. USAID cuts left kids without vaccines, sparking anger. The Israel-Iran war showed how fast fights with terror groups can pull big countries in, with U.S. bombs shaking the ground in Tehran.
Some things got better: prices stopped rising so fast, new technology created jobs, and a few peace talks worked.
Many things got worse: more military takeovers, hotter weather, and higher food prices for poor families. The Middle East war left scars that may reopen.
The big question for 2026 is simple: Will leaders choose to work together, or will they keep fighting? Stories from Tanzanian streets to Iranian bunkers tell us – people want peace and fairness more than ever.
