The World Economic Forum's annual meeting kicked off today in the snow-dusted Swiss resort town of Davos, drawing an extraordinary lineup of global power players under the theme "A Spirit of Dialogue." With over 3,000 delegates from more than 130 countries, this year's gathering is already being billed as one of the most consequential in recent memory- dominated not just by economic forecasts, but by raw geopolitical drama.
A record 65 world leaders are expected to attend, including US President Donald Trump, making his first in-person appearance at Davos since 2020 and arriving with what organisers call the largest American delegation ever assembled. Joining him are European Commission President Ursula von der Leyen, German Chancellor Friedrich Merz, and Chinese Vice Premier He Lifeng, among others. Trump's presence alone has cast a long shadow over the proceedings: European leaders took centre stage early, addressing transatlantic strains, while von der Leyen and He Lifeng delivered high-profile addresses on Tuesday, positioning the EU and China as potential counterweights to Washington's assertive posture.
The forum unfolds against a backdrop of cascading global flashpoints that have markets, diplomats, and energy analysts on high alert.
US threats to acquire Greenland have escalated dramatically. President Trump has revived-and intensified-his long-standing interest in the Arctic island, threatening 25 per cent tariffs on several NATO allies (including Denmark, Germany, France, and the UK) unless Denmark agrees to sell or transfer control. Denmark has boycotted the event in protest, and Greenland leaders have denounced the pressure as unacceptable. The dispute has sparked mass demonstrations in Nuuk and Copenhagen, with European officials warning of a "dangerous downward spiral" in transatlantic relations.
The capture of Venezuelan President Nicolas Maduro earlier this month has sent shockwaves through Latin America and beyond. In a stunning US military operation in early January, special forces seized Maduro and his wife in Caracas, flying them to face narco-terrorism and weapons charges in New York. The move, hailed by the Trump administration as a blow against drug cartels, has left Venezuela in political limbo, with interim leadership scrambling and global powers divided. China has demanded Maduro's release, while the action is widely seen as emboldening Washington's willingness to use force in pursuit of its objectives.
Instability in Iran continues to rage. Nationwide protests that erupted in late December over economic collapse have morphed into the most serious challenge to the Islamic Republic in years. Security forces have cracked down brutally, with reports of thousands killed and arrested amid internet blackouts. The unrest fueled by hyperinflation and repression has drawn international condemnation, and Iran's foreign minister was notably absent from Davos after organisers deemed participation inappropriate following the deadly response.
Adding to the unease are tremors in financial markets sparked by recent developments surrounding US Federal Reserve Chair Jerome Powell. The Trump administration's aggressive pressure campaign on the Fed, including threats tied to interest-rate decisions and a criminal investigation launched by the Justice Department, has rattled investors. Powell issued a rare public rebuke, framing the probes as attempts to undermine the central bank's independence. Bond yields ticked higher as traders weighed the risks of politicised monetary policy.
Amid the turbulence, energy experts are offering a counter-narrative of resilience in the clean-energy transition. Despite the US pushing a fossil-fuel-friendly agenda under Trump, analysts argue that the huge momentum behind renewables remains unstoppable. Events in Venezuela and Iran- two major oil producers- are likely to accelerate global electrification efforts. Disruptions to supply chains and price volatility from these crises could make fossil fuels even less reliable, pushing nations to double down on solar, wind, batteries, and electric infrastructure to hedge against geopolitical shocks.
Will Davos produce genuine dialogue or deepen the fractures? In a world of tariffs, military raids, protests, and institutional pressure, the elite gathering in the Alps feels less like a conference and more like a pressure cooker for the future of global order.
