{"id":64108,"date":"2026-07-02T05:09:19","date_gmt":"2026-07-02T09:09:19","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-geopolitical-tensions-rise-as-russia-strikes-kyiv-and-us-dollar-share-hits-record-low\/64108\/"},"modified":"2026-07-02T05:09:19","modified_gmt":"2026-07-02T09:09:19","slug":"global-geopolitical-tensions-rise-as-russia-strikes-kyiv-and-us-dollar-share-hits-record-low","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-geopolitical-tensions-rise-as-russia-strikes-kyiv-and-us-dollar-share-hits-record-low\/64108\/","title":{"rendered":"Global Geopolitical Tensions Rise as Russia Strikes Kyiv and US Dollar Share Hits Record Low"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Russia launched a &quot;massive&quot; missile and drone strike on Kyiv<\/strong>, killing at least 13 people and injuring over 80, in what officials describe as one of the largest aerial assaults of the conflict.<\/li>\n<li><strong>The US dollar&#39;s share of global foreign exchange reserves has fallen to 56.3%<\/strong>, the lowest level this century, as central banks diversify into <a href=\"https:\/\/stockmarketwatch.com\/metal\/gold\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">gold<\/a> and non-traditional currencies.<\/li>\n<li><strong>The European Union announced a major trade liberalization package for Armenia<\/strong>, removing tariffs on approximately 80% of Armenian exports to reduce its economic dependence on Russia.<\/li>\n<li><strong>Pakistan&#39;s Prime Minister Shehbaz Sharif is traveling to Tehran<\/strong> to attend the state funeral of Iran\u2019s former Supreme Leader Ayatollah Ali Khamenei, amid heightened regional security.<\/li>\n<\/ul>\n<h2>Kremlin Escalates Rhetoric Following &quot;Massive&quot; Strike on Kyiv<\/h2>\n<p>The Kremlin has warned that Europe is &quot;escalating tensions&quot; and stated that Russia cannot &quot;turn a blind eye&quot; to perceived security threats. This rhetoric follows a devastating overnight bombardment of the Ukrainian capital. Russian military chiefs briefed President Vladimir Putin on a <strong>&quot;massive&quot; strike<\/strong> involving over <strong>60 missiles and 100 jet drones<\/strong> targeting what Moscow termed &quot;military or quasi-military facilities.&quot;<\/p>\n<p>Ukrainian officials reported that the strikes hit residential buildings, a hotel, and energy infrastructure across all 10 districts of Kyiv. At least <strong>13 people were killed<\/strong> and dozens more hospitalised. In response to the escalation, neighboring Poland, a NATO member, briefly <strong>scrambled fighter jets<\/strong> to secure its airspace. The Kremlin signaled it would continue to &quot;increase pressure&quot; on the &quot;Kyiv regime&quot; to achieve its strategic goals, despite some internal debate between proponents of &quot;decisive measures&quot; and &quot;restraint.&quot;<\/p>\n<h2>US Dollar Dominance Wanes in Global Reserves<\/h2>\n<p>New data from the International Monetary Fund (IMF) reveals that the <strong>US dollar\u2019s share of global foreign exchange (FX) reserves<\/strong> has hit its lowest point since the late 1990s. The greenback now accounts for roughly <strong>56.3% of the $12 trillion<\/strong> in global reserves, down from over 72% in 2001. This shift reflects a long-term trend of <em>de-dollarization<\/em> as central banks increasingly turn to gold and &quot;nontraditional&quot; currencies like the Australian dollar and Swiss franc.<\/p>\n<p>While the dollar remains the world&#39;s primary reserve currency, its grip is loosening as BRICS nations and other emerging economies seek to settle trade in local currencies. Analysts note that while the dollar&#39;s stock remains steady at approximately <strong>$6.77 trillion<\/strong>, its relative share is being eroded by valuation effects and a strategic move by reserve managers to reduce exposure to US asset &quot;policy shocks.&quot;<\/p>\n<h2>EU Moves to Pivot Armenia Away from Russian Influence<\/h2>\n<p>In a significant geopolitical shift in the South Caucasus, European Commission President <strong>Ursula von der Leyen<\/strong> announced measures to <strong>liberalize trade with Armenia<\/strong>. The proposal would make nearly <strong>80% of Armenian exports to the EU tariff-free<\/strong>, specifically targeting sectors like fresh produce and beverages that have historically relied on the Russian market.<\/p>\n<p>The EU is also providing an additional <strong>\u20ac18 million in aid<\/strong>, completing a \u20ac52 million support package designed to bolster Armenia&#39;s economic resilience. Von der Leyen characterized the move as a response to &quot;economic coercion&quot; from Russia, stating that the EU &quot;steps up&quot; when its partners face pressure. This trade pivot follows Armenia&#39;s recent efforts to diversify its security and economic partnerships beyond its traditional alliance with Moscow.<\/p>\n<h2>Global Leaders Gather for Khamenei Funeral Amid Regional Volatility<\/h2>\n<p>Pakistan\u2019s Prime Minister <strong>Shehbaz Sharif<\/strong> is among several world leaders arriving in Tehran for the state funeral of <strong>Ayatollah Ali Khamenei<\/strong>. The former Supreme Leader, who led Iran for 36 years, was reportedly killed in a joint US-Israeli strike in late February. The six-day mourning period is expected to draw between <strong>15 and 20 million mourners<\/strong>, prompting Iranian authorities to place the military on high alert.<\/p>\n<p>The funeral comes at a critical juncture for Middle Eastern diplomacy. While regional tensions remain high, mediators from Qatar and Pakistan have indicated that a <strong>deal to end the broader conflict<\/strong> may be close. The presence of high-level delegations from Russia, China, and India underscores the significant geopolitical weight of the transition in Iranian leadership.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Russia launched a &quot;massive&quot; missile and drone strike on Kyiv, killing at least 13 people and injuring over 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