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The Dual Powers Conflict, also called the Second Cold War is considered an ongoing state of heightened tensions between the two major groupings of nations in the world: the Juneau Pact, led by the United States of America and Russia and primarily made up of the major democracies of the world, and the European Defensive Alliance, led by Sorelist France and her Europe spanning Empire, as well as other right wing dictatorships around the world, including Japan and Brazil, who are considered "confederates" of the EDA.

The Conflict took its current form with the collapse of the Brazilian Bloc in the aftermath of the Venezuelan War in 1978. During this time a series of trade and proxy wars, political conflict and military buildup had pushed the world to the closest it has been to a full scale nuclear war during the 1991 Crisis. In the years after the crisis, several measures to ease tensions have begun, including a re-unification of the Confederate States of America and several agreements to start destroying nuclear stockpiles. In the aftermath of the 1999 attacks on Japan and France, as well as the Red Sea War starting in 2002, the Dual Powers Conflict seemed to have sparked up again, though not to the dangerous levels that had been evident even ten years before.

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