Leaders of the world’s major industrialized nations gathered in Canada on Monday as the escalating war between Iran and Israel threatened to dominate the agenda of the Group of Seven (G7) summit.

The three-day talks in the scenic Canadian Rockies were originally designed to focus on global economic issues, trade and cooperation. But Israel’s stunning and unprecedented military strikes deep inside Iran just two days before the summit have dramatically shifted the priorities.

Canadian Prime Minister Mark Carney, hosting his first major diplomatic event, is now seeking a joint G7 stance on the crisis.

Diplomatic sources said discussions are underway on a possible statement calling for a de-escalation — or alternatively, backing Israel’s “right to self-defense” in response to Iran’s nuclear activities.

Tensions rising between allies

European Commission President Ursula von der Leyen, who spoke with Israeli Prime Minister Benjamin Netanyahu before arriving in Canada, blamed Iran for provoking the conflict by advancing its nuclear program.

“Of course, I think a negotiated solution is, in the long term, the best solution,” she said, while avoiding calls for an immediate ceasefire.

US President Donald Trump, who has often gone against traditional diplomatic norms, voiced full support for Israel’s military actions, despite having earlier urged Netanyahu to delay the strikes in favor of diplomatic talks.

“Israel used US weapons, and they’re doing what they have to do,” Trump said, even as concerns grow over the potential for a full-scale regional war.

Japan, notably, broke ranks with its G7 partners, calling Israel’s assault “deeply regrettable,” a rare public criticism of the Jewish state from a major US ally.

Intensifying war: Civilians pay price

Iran launched its largest missile assault yet on Israeli cities early Monday, retaliating for last week’s Israeli strikes on Iranian military and nuclear sites. Explosions rocked Jerusalem, Tel Aviv, and Haifa, with fires and debris scattered across neighborhoods.

Israel said its operations targeted Iranian military leaders and nuclear scientists, with Tehran reporting at least 224 dead and over 1,200 wounded. In Israel, five people were killed and at least 92 injured after the latest Iranian attacks.

Iran’s Revolutionary Guards vowed more “devastating operations,” accusing Israel of deliberately targeting civilians.

Iranian President Masoud Pezeshkian urged unity against what he called “genocidal criminal aggression,” while military officials warned Israeli cities could soon become “uninhabitable.”

Israeli Prime Minister Benjamin Netanyahu, visiting a bombed residential block near Tel Aviv, promised harsh retaliation. “Iran will pay a very heavy price for the murder of civilians, women, and children,” he said.

Israel claimed to have destroyed a third of Iran’s missile launchers. Meanwhile, the US reported minor damage to a building used by its embassy in Tel Aviv.

Calls for de-escalation mounted globally, with China and the EU urging restraint. EU chief Ursula von der Leyen said Israel has a right to defend itself but blamed Iran for destabilizing the region.

Iran demanded condemnation from the UN nuclear watchdog over Israel’s strikes on its nuclear sites. In turn, Iran canceled planned nuclear talks with the US, calling dialogue “meaningless” under bombardment.

US President Trump distanced America from the Israeli offensive but warned Iran of “the full strength and might” of the US military if attacked. Trump also reportedly blocked an Israeli plan to assassinate Iran’s supreme leader, Ayatollah Ali Khamenei.

As missiles continue to rain down, fears of a wider regional war are rapidly growing.

Iran executes Mossad spy

Also on Monday, Iran executed Esmaeil Fekri, convicted of spying for Israel’s Mossad, as tensions soared between the two rivals.

Fekri was found guilty of “corruption on Earth” and “waging war against God,” with the supreme court upholding the verdict, Iran’s judiciary said.

Chief Justice Gholamhossein Mohseni Ejei vowed swift trials for others accused of collaborating with Israel, citing “war conditions.”

The execution came as both countries traded arrests of alleged spies, following Israel’s surprise strikes on Iran that have killed at least 224 people. Iran has responded with missile barrages that have killed at least 24 in Israel.

A dangerous stalemate

The crisis now risks expanding beyond the Middle East, with Iranian drones and missiles being used by Russia against Ukraine, drawing Europe further into a widening confrontation.

As the G7 summit proceeds, leaders are caught between managing deepening global divisions on trade, responding to the humanitarian disaster unfolding in Gaza and Israel, and addressing the growing threat of a broader, more dangerous war in the Middle East.

For now, global powers remain at an impasse — with no ceasefire in sight.