A substantial fraction of stars can be found in wide binaries with projected separations between ∼102 and 105 au. In the standard lore of binary physics, these would evolve as effectively single stars that remotely orbit one another on stationary Keplerian ellipses. However, embedded in their Galactic environment, the low binding energy of wide binaries makes them exceptionally prone to perturbations from the gravitational potential of the Milky Way and encounters with passing stars. Employing a fully relativistic N-body integration scheme, we study the impact of these perturbations on the orbital evolution of wide binaries along their trajectory through the Milky Way. Our analysis reveals that the torques exerted by the Galaxy can cause large-amplitude oscillations of the binary eccentricity to 1 − e ≲ 10−8. As a consequence, the wide binary members pass close to each other at periapsis, which, depending on the type of binary, potentially leads to a mass transfer or collision of stars or to an inspiral and subsequent merger of compact remnants due to gravitational-wave radiation. Based on a simulation of 105 wide binaries across the Galactic field, we find that this mechanism could significantly contribute to the rate of stellar collisions and binary black hole mergers as inferred from observations of luminous red novae and gravitational-wave events by LIGO/Virgo/Kagra. We conclude that the dynamics of wide binaries, despite their large mean separation, can give rise to extreme interactions between stars and compact remnants.