The past week was a reminder of just how interconnected the world has become. War with Iran is driving energy prices higher and sending shockwaves through global supply chains. Cartel violence and rising political rhetoric are once again placing Mexico’s security challenges at the center of the North American conversation. At the same time, capital is on the move. Investors leaving California and families from Mexico seeking stability are searching for places to invest, build businesses, and educate their children. That creates both pressure and opportunity for Arizona. And sometimes the clearest signals of where things are headed appear in unexpected places, even on a football field.

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The conflict with Iran may feel distant, but Arizonans will feel it quickly at the gas pump.

When instability threatens the Strait of Hormuz, where roughly 20% of the world’s oil supply flows, global energy markets tighten and prices rise. Those increases ripple through supply chains, transportation, and consumer costs.

But Arizona has an additional vulnerability that makes the situation worse.

In Maricopa County and parts of Pinal County, drivers must use a special Cleaner Burning Gasoline (CBG) blend created to meet air quality requirements. Because this boutique fuel is produced by only a small number of refineries, the region’s fuel supply becomes fragile and vulnerable to disruptions.

When refineries experience outages or pipelines slow, Phoenix gas prices often spike faster than the national average.

There are tools available to address this. During genuine supply emergencies, states can request temporary fuel waivers from the Environmental Protection Agency to allow alternative gasoline blends and increase supply.

That is why state leadership matters.

When global energy shocks collide with local fuel policy, leaders should be actively preparing options, coordinating with federal agencies, and working to protect consumers from avoidable price spikes.

Too often, Arizona appears to simply react after the damage is done rather than anticipating the problem.

The larger lesson is strategic.

For years the political conversation has focused heavily on border security. But in a volatile world, economic resilience also requires secure energy and supply chains.

Arizona sits at the center of a growing North American logistics corridor connecting California, Mexico, and the interior United States.

Leadership should be thinking about how to strengthen that position before the next shock arrives.

Because when energy markets tighten, the difference between preparation and inaction shows up one place first.

At the gas pump.

Last week I attended LIFTAZ 2026, an initiative focused on strengthening Arizona’s innovation and investment ecosystem.

One comment from a presenter stayed with me.

Capital is on the move.

In California, political debate around new taxes on wealth and billionaires is sending signals to entrepreneurs and investors. Whether those proposals ultimately pass or not, many investors are asking a simple question.

Where should we go next?

The numbers tell part of the story. Since 2010, nearly 10 million people have left California, with Texas, Florida, Nevada, and Arizona among the top destinations. More than 630,000 Californians have relocated to Arizona during that time.

But there is another migration Arizona should not overlook.

Across Mexico and Latin America, many business families are seeking ways to diversify assets in the United States. Concerns about security, currency volatility, and political uncertainty are pushing investors to look for stable markets and universities for their children.

Arizona sits in a unique position between these two flows of capital.

Through my work with Intermestic Partners and Intermestic Capital, I see this firsthand. Investors from Latin America are actively exploring opportunities in the United States, and Arizona often stands out because of its business climate, proximity to Mexico, and growing technology ecosystem.

But opportunity alone is not enough.

Other states are actively making their pitch. As I travel internationally, I regularly encounter Texas, Illinois and Florida delegations promoting their states to investors and entrepreneurs.

I rarely see Arizona making its case.

That must change.

If we want to grow our investment and innovation ecosystem, we need champions, advocates, and a large scale strategy to attract the investors and entrepreneurs already looking for their next home.

And if public leadership is not making that pitch, the private sector must step up.

Arizona has the opportunity. Now we need the leadership and ambition to claim it.

If you are exploring Arizona investment opportunities, reach out.

Let’s work together to position Arizona as the next great investment hub in North America.

The debate over how to confront Mexico’s cartels intensified again this week after President Donald Trump said during a press gaggle that “the cartels are running Mexico,” adding that while he personally likes Mexico’s president, the government is constrained by the power these organizations hold.

Political reactions aside, defeating cartel power is far more complex than removing cartel leaders.

For years governments relied on the kingpin strategy. Arrest or eliminate a cartel boss and another quickly replaces him. The cartels adapt because they operate less like gangs and more like multinational enterprises with logistics networks, financial operators, and political protection.

But something different is happening right now.

Some of the most powerful figures in cartel history are now in U.S. custody or prosecution, including Joaquín “El Chapo” Guzmán, his son Ovidio Guzmán, and Ismael “El Mayo” Zambada, the longtime Sinaloa Cartel leader captured and now facing charges in the United States. Others tied to the organization are also cooperating with investigators.

Together, these figures possess decades of operational intelligence.

They know the routes, shell companies, financial networks, and payoffs that allowed cartel operations to flourish. More importantly, they know who was paid to look the other way.

That includes political intermediaries, local officials, and in some cases the families of powerful politicians who allegedly benefited from cartel money.

U.S. prosecutors now hold an extraordinary amount of intelligence about the cartel ecosystem.

The question is whether that information will remain buried in court filings or whether it will lead to real accountability.

Because until one major political figure tied to cartel money falls, the system of impunity that protects organized crime will continue.

If the goal is truly to dismantle cartel power, the strategy cannot stop with traffickers.

It must extend to the political protection networks that allowed them to thrive.

In the end, the path forward remains the same.

Follow the money.

While geopolitics and economics dominate the headlines, something interesting is happening in sports.

The San Francisco 49ers recently launched 49ers Flag Mexico, a youth initiative aimed at expanding flag football participation and introducing the game to younger generations.

At first glance it may look like a simple sports program. In reality it reflects something much bigger.

Mexico is one of the largest NFL markets outside the United States, and the fan base continues to grow. Historically, teams like the Dallas Cowboys, San Francisco 49ers, and Pittsburgh Steelers have built some of the largest and most loyal followings in Mexico.

Programs like this show that the league understands the opportunity.

From my own experience working across the United States and Mexico, I have seen how powerful sports diplomacy can be. Sports create connections that politics and business alone often cannot.

And this initiative is likely just the beginning.

Other teams would be wise to follow the same approach and invest in grassroots programs and youth development across Mexico.

The opportunity also extends beyond football.

The NBA has long recognized the importance of the Mexican market. Teams like the Phoenix Suns have built strong connections with fans in Mexico through games, outreach programs, and community engagement.

Mexico represents one of the largest sports markets in the world.

Organizations that invest now will not only grow their fan base. They will help strengthen the cultural ties between communities on both sides of the border.

Because sometimes the strongest bridges between nations are built not in government offices, but on the playing field.

National politics often dominate the conversation, but some of the decisions that shape our communities most directly happen much closer to home.

Here in Arizona, Phoenix Mayor Kate Gallego has launched KATE PAC, an effort aimed at supporting initiatives and candidates focused on strengthening communities across the state.

The PAC has already been involved in efforts such as supporting the expansion of Valleywise Health, an important investment in healthcare infrastructure that serves families throughout Maricopa County.

Right now, the organization is also working to support HB2375, legislation designed to help protect Arizona’s historic neighborhoods from development pressures that could erase the character and history of communities that have shaped the Valley for generations.

As Arizona continues to grow and attract new residents, investors, and businesses, maintaining the balance between economic development and community preservation will become increasingly important.

Efforts like KATE PAC are part of that conversation.

Strong communities do not happen by accident. They require engaged leadership, civic participation, and people willing to invest their time and resources into shaping the future of their neighborhoods and cities.

If you are interested in learning more about the work underway, you can visit:

https://www.kategallego.com

And if you would like to support efforts focused on keeping Arizonans together and engaged, contributions can be made here:

https://secure.actblue.com/donate/keeping-arizonans-together-and-engaged-1?refcode=website

Because in the end, the strength of a state is built from the ground up.

Thanks for reading this edition of my newsletter! I'd love to hear from you. Share your thoughts about what you think are the most critical issues that need to be addressed. Email me at [email protected] or connect with me on social media using the hashtag #Intermestic.

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