There is a great traction amongst western countries on building up a coalition to tackle ISIS, but the big question is which countries in West Asia would be able to synchronise western goals with theirs? While the US and its NATO allies, along with France and Australia have been assisting the Kurdish peshmerga, the list of Arab countries willing to work with the West-led coalition is unclear.

The general impression is that Iran has gained tremendously from rising oil prices, fuelled by its vast oil wealth. In reality, however, given increased domestic consumption coupled with inefficient usage and subsidies, Iran is actually struggling to produce enough oil and gas for export. Without substantial upgrades Iran's oil production is expected to go through a gradual decline. Though Iran has abundant oil reserves, estimated at around 137 billion barrels, it has not even been able to generate its OPEC quota due to lack of technical expertise and skills.

The underground nuclear test conducted by North Korea yesterday has established it as the ninth member of the nuclear club. There had been speculation, particularly since the failed test of a long-range missile, that North Korea would move to a nuclear test. It had warned about the impending test, and quite simply had nothing to lose. From a North Korean point of view, it was clear that the failed missile test demonstrated weakness and another missile test in the near term was unlikely to reduce international pressure on the regime.

The India-South Korea bilateral relationship is a remarkable example of how trade is the primary driver in global relationships. Ideology, which marked international relations in the previous decades, has given way to trade - which now is the international marker for relations. An important watershed in the relationship will be the beginning of construction for the POSCO integrated steel plant, which is slated to begin in April 2007 and would constitute the single largest foreign investment in India at US$ 12 b.