Thailand, Cambodia Clashes: UN To Hold Emergency Meeting

Political

Economic

Summary:

The fighting marks a dramatic escalation in a long-running dispute between the two Southeast Asian neighbors. Thailand said over 100,000 people have so far been displaced.

Thailand, Cambodia Clashes: UN To Hold Emergency Meeting_1

Cambodia and Thailand blame each other for triggering the latest clashes

The United Nations Security Council is due to hold an emergency meeting on Friday to discuss the ongoing border clashes between Thailand and Cambodia.A long-running border dispute erupted into intense fighting on Thursday, with violence flaring near two temples on the border between Thailand's Surin province and Cambodia's Oddar Meanchey.Both countries blame the other for triggering the latest clashes.While Cambodia fired rockets and shells into Thailand, the Thai military scrambled F-16 jets to hit military targets across the border.

Clashes continue for a second day

The fighting continued for a second day early on Friday, Thai authorities said.They also claimed that Cambodia was using heavy weapons, including artillery and rockets."Cambodian forces have conducted sustained bombardment utilizing heavy weapons, field artillery, and BM-21 rocket systems," the Thai military said in a statement. "Thai forces have responded with appropriate supporting fire in accordance with the tactical situation."The Thai Interior Ministry said the death toll on their side had risen to 14. It added that over 100,000 people from four border provinces had been moved to nearly 300 temporary shelters.

The exact number of casualties in Cambodia remains unclear.

A Cambodian provincial official said on Friday that at least one Cambodian civilian was killed and five others injured.Around 1,500 Cambodian families from Banteay Ampil district in the Oddar Meanchey province near the conflict zone have been evacuated to safety, Meth Meas Pheakdey, a spokesperson for the provincial administration, said on Facebook.

What is the conflict about?

The two nations are locked in disagreement over the Emerald Triangle — an area where the borders of both countries and Laos meet, and home to several ancient temples.Thailand and Cambodia, which share an 800-kilometer (500-mile) frontier, have been arguing over where the border should be drawn for years.Dozens of kilometers in several areas are contested.Fighting broke out between 2008 and 2011, but a UN court ruling in 2013 settled the matter for over a decade.

The international community has urged both sides to exercise restraint and halt the fightingImage: STR/AFP

The current crisis erupted in May after both countries' militaries briefly fired at each other in a relatively small, contested border area that each nation claims as its own.Both sides said they acted in self-defense. One Cambodian soldier was killed.While Bangkok and Phnom Penh said afterwards they agreed to de-escalate the situation, tensions have remained high as Cambodian and Thai authorities continued to implement or threaten measures short of armed force.

How did the international community react?

China's Foreign Ministry said it was deeply concerned about the ongoing clashes and would play a constructive role in promoting de-escalation.The United States and France, Cambodia's former colonial ruler, urged an immediate end to the conflict.The EU said it was deeply concerned about the clashes and called for dialogue to end the fighting.

Edited by: Sean Sinico

Source: DW

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Gerik

Economic

Market Rotation Favours Small-Caps Amid Tariff Risk and Euro Strength

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Source: Reuters

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James Whitman

Economic

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Source: Reuters

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Gerik

Political

Escalation of Border Violence Between Thailand and Cambodia

A longstanding territorial dispute between Thailand and Cambodia erupted into the deadliest military clashes in over a decade, now continuing into a second day. Fighting has intensified along the contested border, with both sides deploying rockets and artillery. According to Thailand's government, at least 14 people have died, including one soldier, and over two dozen others have been wounded, some critically. Cambodian casualty figures have yet to be confirmed.

The Thai military reported continuous bombardment from Cambodian forces through Friday morning, prompting retaliatory strikes and warnings to civilians to stay away from the conflict zones. Cambodia's Ministry of Defense acknowledged its own overnight artillery use and, according to the Khmer Times, claimed control over three disputed temple sites.

Airstrikes and Civilian Threats Mark Severe Escalation

Thursday’s clashes marked a significant escalation, with Thailand launching F-16 airstrikes on Cambodian military targets, while Phnom Penh’s forces reportedly struck civilian areas in Thailand. The violence follows months of increasing tensions along the border and has further destabilized Thailand’s already fragile ruling coalition.

The stakes are not only military but political. The Thai government is under intense pressure domestically, and the outbreak of violence may shift dynamics in both countries’ internal politics. Cambodian control claims over disputed heritage sites could inflame nationalist sentiments and prolong hostilities.

International Condemnation and U.S. Intervention

Global reaction has been swift. The United States, through State Department deputy spokesman Tommy Pigott, expressed deep concern and called for an immediate cessation of hostilities, urging both sides to prioritize civilian protection and pursue a diplomatic resolution. Several other nations echoed these sentiments, fearing broader regional instability.

This conflict risks drawing in neighboring ASEAN nations or prompting emergency diplomatic interventions, especially given the region’s history of border disputes and political volatility.

Economic Fallout Begins to Surface

Markets have started reacting to the unrest. Thai stocks dropped for the second consecutive day, with the benchmark index down as much as 0.6%. The Thai baht weakened by 0.2% to 32.33 per U.S. dollar, tracking declines among regional currencies. Investor sentiment is being weighed down not only by the physical conflict but also by the potential implications for regional supply chains, political stability, and foreign investment confidence.

Unless meaningful diplomatic negotiations occur soon, the likelihood of prolonged conflict remains high. With Cambodia claiming territorial gains and Thailand facing internal political upheaval, a resolution may depend on strong third-party mediation — possibly involving ASEAN, the United States, or the United Nations. Without that, the situation risks spiraling into a broader humanitarian and economic crisis for both nations.

Source: Bloomberg

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Gerik

Economic

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Source: Reuters

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Damon

Commodity

Economic

The Trump administration withdrew Chevron's authorization to lift Venezuelan cargoes effective on 27 May. But the administration now plans to issue a private license to Chevron substantially on the same terms as before — meaning the US major can take its share of the Venezuela joint venture output and import it into the US, a US energy industry source said.

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Source: Argus Media

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Damon

Economic

Stocks

Forex

Equities:

European stock futures were mixed, as investors continue to parse corporate earnings and await developments on ongoing U.S. trade negotiations.Trade partners with the U.S. could lower tariff rates set to kick in next week by striking deals similar to the one made with Japan, President Trump said Thursday. Trump also teased a potential deal with the EU, which currently faces a 30% rate if no other agreement can be reached by Aug. 1. "We're in the process of probably making a very good deal with them too. They want to make a deal very badly," he said.

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Forex:

The dollar gained early Friday. There is renewed optimism over trade talks, OCBC Global Markets Research said. "Following the announcement of the U.S.-Japan trade deal, which reduced the tariff rate from 25% to 15%, reports indicate that a similar agreement may be reached between the U.S. and Korea, where tariffs currently stand at 25%," the team said.

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Bonds:

U.S. Treasury yields were broadly lower. U.S. labor data released Thursday supports a long Fed hold and intensified a Treasury selloff, pushing yields to rise for a second consecutive session.Recent trade deals have been fueling risk-taking, too. Data showed layoffs remain contained, removing a potential reason for the Fed to cut interest rates. President Trump, however, keeps calling for fast monetary easing, making markets suspect a more dovish stance lies ahead.

Energy:

Oil rose early Friday. U.S. and EU officials look like they are converging on a possible deal. European officials expect a 15% tariff on most EU exports to the U.S., in line with the Japan deal. This news has lifted confidence that a worst-case scenario of a 30% tariff is avoidable, ANZ Research analysts said.

"The price action indicates market participants are getting increasingly sanguine about the outlook for oil markets, despite the accelerated phase-out of additional voluntary adjustments by OPEC+," Amarpreet Singh of Barclays said.

Metals:

Gold declined amid possible position adjustments. Any remaining flows out of gold positions by retail investors are likely to be absorbed by continued central-bank purchases, said Daniel Ghali at TD Securities. Macro funds are also short gold. The brokerage has observed recent changes to open interest in gold futures that suggest these funds have huge scope to cover their short positions, he said.

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