Both chambers of Paraguay's Congress voted to formally repudiate Brazilian President Luiz Inacio Lula da Silva, who visited an arms factory on July 24 and said Paraguay 'one fine day decided to invade Brazil' to justify defense spending; Paraguayan legislators and historians said Lula's framing cast Paraguay as the sole aggressor in the 1864-1870 war that killed roughly 90% of the country's pre-war adult male population, and the Chamber of Deputies formed a commission to demand return of war trophies held in Brazil, including the Cannon El Cristiano

Paraguay's Fiscalía launched a criminal investigation on July 14 after the country's ICT ministry and the US Embassy jointly announced that multiple Chinese government-linked cyber threat actors, including the Flax Typhoon group identified in a 2024 review, had infiltrated Paraguayan state networks; China's Foreign Ministry denied the allegations

Kylian Mbappé converted a penalty in the 70th minute in Philadelphia as France edged a resilient Paraguay side; Les Bleus face Morocco on July 9 in a rematch of the 2022 semi-final

Paraguay and Brazil failed to reach agreement on a revised Annex C electricity-sharing formula at the Mercosur summit in Asunción on 2 July 2026, despite a countdown to the expiry of the 2024 bridge tariff and the 2007 Operational Agreement; Paraguay's electricity utility ANDE has acknowledged the dual expiry will require a fundamentally new negotiating structure from January 2027

The US State Department designated Brazil's Primeiro Comando da Capital and Comando Vermelho as Foreign Terrorist Organisations and Specially Designated Global Terrorists on 28 May 2026, effective 5 June; Paraguay had already made the same designation in October 2025, and Argentina followed suit in June, triggering highest-level border alerts across the Triple Frontier region

Paraguay President Santiago Peña met Taiwan President Lai Ching-te in Taipei on 8 May 2026 and signed agreements on mutual legal assistance in criminal matters, cybersecurity cooperation, and a Sovereign AI and Computing Infrastructure Investment MOU envisioning a phased computing campus reaching 1 gigawatt; Taiwan simultaneously opened its market to Paraguayan poultry exports