West Asia News Live: Australia, UK shift Gaza stance; Iraq blackout and UAE push for economic reforms

Argentina’s President Javier Milei has announced the launch of the ‘Isaac Accords’, a new diplomatic initiative aimed at improving relations between Israel and countries in Latin America, Al Jazeera says in a report. The initiative will be funded by the $1 million Genesis Prize, which was awarded to Milei. The name ‘Isaac Accords’ echoes the previous US-brokered ‘Abraham Accords’ that normalised relations between Israel and several Arab nations, suggesting a similar goal of fostering diplomatic and economic cooperation, but with a focus on the Latin American region.

The Iraqi government has announced it will prosecute members of the pro-Iran militia Kataib Hezbollah following a recent deadly clash in Baghdad, according to a report in The New Arab. The legal action comes after an attack on a government office in the capital that resulted in the deaths of three people. Kataib Hezbollah is a powerful faction within the state-sponsored Popular Mobilization Forces (PMF), an umbrella group of militias formed in 2014 to fight ISIS, but it often operates outside of the state’s command structure and maintains close ties to Iran.

Six Lebanese soldiers have been killed following a blast at a Hezbollah weapons depot in southern Lebanon, near the border with Israel, The New Arab says in a report. The incident occurs amidst persistent ‘disarmament tensions’ surrounding Hezbollah’s status as a heavily armed non-state actor, a key point of political contention within Lebanon and a source of regional instability. From a financial and economic perspective, the event underscores the fragility of the Lebanese state, which is already contending with a severe economic crisis and a political vacuum. Such incidents increase perceived risk for investors and may further complicate international efforts aimed at providing financial aid and fostering economic recovery, as they highlight the central government’s lack of a monopoly on force and its inability to control all of its territory.

Bishara Bahbah has denied reports that he resigned from an unofficial US negotiating team focused on ending the war in Gaza, according to a report in The New Arab. Bahbah, a Palestinian-American academic, is reportedly part of an informal advisory group for US President Donald Trump. The role is not an official government position but is framed as part of the Trump administration’s efforts to address the ongoing conflict, which began in October 2023.

Israel is considering a resumption of hostage negotiations in Doha, Qatar, following Prime Minister Benjamin Netanyahu’s rejection of a ‘partial deal’ for the release of captives, Israel National News says in a report. This potential return to the negotiating table aims for a more comprehensive agreement to free all remaining hostages and comes amid significant international pressure from mediators including the US, Qatar, and Egypt, as well as sustained domestic pressure from the families of the hostages. Multiple previous rounds of talks have failed to bridge the fundamental disagreements between Israel and Hamas, particularly over the demand for a permanent ceasefire.

A severe heatwave is sweeping across several West Asia and North African nations, causing significant strain on public infrastructure and posing risks to key economic sectors, according to a report in The New Arab. Countries including Kuwait and Egypt are experiencing extreme temperatures and humidity, leading to failures in power grids and water systems unable to cope with surging demand. The extreme weather event is disrupting economic activity, particularly in sectors like construction, agriculture, and tourism, which are crucial for regional economic diversification plans. The crisis also exacerbates existing vulnerabilities such as water scarcity and food insecurity, heightening concerns over potential social unrest and increasing pressure on government resources.

Italy’s defense minister has drawn a comparison between Israeli Prime Minister Benjamin Netanyahu and Russian President Vladimir Putin regarding the ongoing war in Gaza, Haaretz said in a report. The minister is also reportedly considering the possibility of imposing sanctions in response to the conflict, a move that signifies notable international criticism from a key European nation and G7 member.

A chlorine gas leak in Iraq has resulted in the hospitalisation of over 600 pilgrims, an event that highlights the critical state of the nation’s public infrastructure, The New Arab says in a report. The incident is being attributed to systemic failures, including dilapidated facilities and lax safety standards, which are direct consequences of decades of conflict and pervasive corruption. This event places significant pressure on the Iraqi government, exposing its inability to ensure basic public safety and maintain essential services. For businesses and investors, it reinforces the high operational risks within the country, stemming from fragile infrastructure and weak regulatory enforcement, which can lead to severe public health crises and fuel further social and political instability.

An expanded energy deal for Egyptian firms to import 64 billion cubic metres of natural gas from Israel is facing growing public and political opposition in Egypt, according to a report in The New Arab. The agreement builds upon a 2018 deal involving companies such as Egypt’s Dolphinus Holdings and Israeli field operators, and is economically significant for both nations. For Israel, it provides a key market to monetise its large offshore gas reserves, while for Egypt, it supports the strategic ambition to become a regional energy hub by liquefying and re-exporting the gas via its Mediterranean LNG facilities. However, the backlash, rooted in widespread anti-normalisation sentiment connected to the Israeli-Palestinian conflict, presents a notable political risk for the Egyptian government and could affect the long-term stability of the commercial arrangement.

Iraq has announced a widespread power outage across the country after its dilapidated electricity grid failed under the strain of a severe heatwave, with temperatures reaching 50C, as per a report in The New Arab. The crisis is exacerbated by high demand for cooling and a significant influx of religious pilgrims, further taxing the fragile infrastructure. Systemic issues, including a grid degraded by decades of conflict, chronic underinvestment, and corruption, are the root causes of the recurring power failures. In the absence of a reliable state supply, many Iraqis are forced to depend on expensive private generators for electricity.

The Syrian government has established a central committee to review public sector dismissals that occurred between 2011 and 2024, a period corresponding with the country’s civil war, according to a report in The New Arab. The initiative comes as Syria faces a severe economic crisis, but its potential economic impact is being questioned due to significant concerns over a lack of transparency. The committee’s mandate reportedly excludes dismissals driven by security decisions, which analysts suggest reinforces that political loyalty, rather than administrative reform or rule of law, remains the primary driver within state institutions. This framework is seen as a major impediment to creating a stable environment for business or attracting the foreign investment needed for economic reconstruction.

A man in Aleppo has died under torture while being held in a detention facility for allegedly stealing a motorcycle, according to a report in The New Arab. The incident is presented as an example of ongoing human rights abuses in areas of Syria under the control of Bashar al-Assad’s government.

Israel’s Minister of National Security, Itamar Ben-Gvir, has publicly called for the toppling of the Palestinian Authority (PA) and labelled its leader, Mahmoud Abbas, a ‘terrorist’ in a statement on social media, The New Arab says in a report. This declaration significantly escalates political tensions and introduces considerable uncertainty for the region’s economic stability. The rhetoric threatens to undermine the PA’s role in security coordination, which is vital for maintaining the relative calm necessary for economic activity in the West Bank. Analysts suggest that the collapse of the PA could create a power vacuum, leading to widespread instability that would deter investment and disrupt commerce, while potentially straining economic and diplomatic relations with key international partners such as the US and European Union, who provide financial support to the authority.

Climate activist Greta Thunberg is set to participate in a new flotilla scheduled to depart for Gaza on 31 August in an attempt to break the Israeli-enforced blockade, The New Arab says in a report. Thunberg has urged other activists to join the flotilla, which aims to deliver humanitarian aid and draw global attention to the humanitarian situation in the enclave. Similar past attempts to break the blockade by sea have led to confrontations, most notably the Mavi Marmara incident in 2010.

A report detailing the detention of 662 Palestinians in the West Bank in July, and over 18,500 since October 2023, underscores a significant escalation in regional instability, according to a report in The New Arab. From a market perspective, such sustained security operations contribute to heightened geopolitical risk, a key consideration for investors in Israel and the wider West Asia region. This environment can deter foreign direct investment, disrupt local commerce and supply chains, and potentially introduce volatility in local equity markets and currency valuations. The continued unrest undermines business confidence and complicates the operational landscape for companies with a presence in the territory, signalling potential long-term economic consequences stemming from the ongoing conflict.

The owner and builder of a collapsed apartment building in Balikesir, Turkey, have been detained by authorities amid fears of negligence, according to a report in The New Arab. The detention follows a 6.1 magnitude earthquake that struck the region, resulting in the building’s collapse, which killed one person and left 29 others injured. The action against the contractor comes as questions are raised about adherence to construction standards in the seismically active country.

US Congressman Abraham Hamadeh, a known associate of President Donald Trump, has met with Ahmed Al-Sharaa, the leader of Hay’at Tahrir al-Sham (HTS), in Damascus, The New Arab says in a report. This development presents a significant challenge to established US foreign policy, which formally designates HTS as a terrorist organisation and imposes sanctions on Syria through the Caesar Act. From a market perspective, this unauthorised diplomatic engagement introduces considerable geopolitical uncertainty into West Asia, potentially affecting investor confidence and risk assessments for the region. The meeting signals a potential divergence from official US policy, creating ambiguity for businesses regarding the future of sanctions enforcement and regional stability, which could in turn impact energy markets and firms with exposure to the area.

Disabled women in Gaza are experiencing severe difficulties in overcrowded shelters due to the ongoing war and mass displacement, as per a report in The New Arab. The conditions are reportedly characterized by a significant lack of privacy, inadequate hygiene facilities, and insufficient access to necessary medical care for this vulnerable group.

The peak of the Perseid meteor shower on August 12-13 offers a celestial display across West Asia, but political and security realities on the ground starkly contrast with the universal nature of the event, as per a report in The New Arab. For millions living in conflict zones such as Syria, Yemen, and parts of Iraq, or in regions with high insecurity, traveling to the remote, dark locations ideal for stargazing is prohibitively dangerous. Furthermore, governmental restrictions on freedom of movement and assembly in several countries in the region present another significant barrier, highlighting a disparity where the simple act of watching a meteor shower is a privilege unavailable to those affected by instability and authoritarian control.

Syrians are facing persistent and lengthy power outages that significantly impact daily life, even with the recent import of new gas supplies, The New Arab says in a report. The crisis is not being resolved by the new shipments because of a combination of factors, including extensive war damage to power plants and transmission lines, and a lack of maintenance and spare parts. The situation is further exacerbated by US sanctions under the Caesar Act, which restrict trade and investment in Syria’s energy sector, and the Syrian government’s lack of control over major domestic oil and gas fields, which are primarily in areas held by other factions.

The Lebanese government has replaced the head of army intelligence in Beirut’s southern suburbs, a significant Hezbollah stronghold, a development that signals a potential shift in state policy towards the influential group, The New Arab says in a report. From a financial perspective, this move introduces a new layer of political risk into Lebanon’s severely strained economy. For investors, the change could be interpreted as a precursor to heightened internal tensions, potentially leading to further instability that would negatively impact the Lebanese pound and the country’s sovereign debt. While the action may be viewed by international bodies as a step towards asserting state sovereignty, a prerequisite for future financial aid, any resulting conflict could further cripple economic activity and deter the foreign investment critical for recovery.

Syria’s foreign minister and a senior Kurdish official held a meeting in Damascus on Tuesday, according to a report in The New Arab. The direct engagement between the two parties comes after the Syrian government boycotted internationally-mediated talks that were recently scheduled to take place in France. This meeting marks a significant instance of direct communication between the Assad government and representatives of the Kurdish-led administration in the country’s northeast.

Norway’s Government Pension Fund Global, the world’s largest sovereign wealth fund valued at $2 trillion, announced on Tuesday its expectation to divest from more Israeli companies, The New Arab says in a report. This move is part of an ongoing portfolio review based on the fund’s strict ethical guidelines, which are often applied to companies linked to severe human rights violations or operations in conflict zones. The decision carries significant economic and symbolic weight, potentially increasing financial pressure on the Israeli economy and setting a major precedent for other large institutional investors who are increasingly integrating geopolitical risks into their ESG (Environmental, Social, and Governance) frameworks.

A US congressman held talks with the Syrian president regarding the return of the body of an American who was killed in Syria, Asharq Al-Awsat says in a report. The discussion, which represents a rare diplomatic engagement, focused on the necessary steps to facilitate the repatriation of the citizen’s remains to the United States.

A United Nations General Assembly vote indicating that three-quarters of members support Palestinian statehood signals a major diplomatic development with potential economic ramifications for the region, as per a report in Asharq Al-Awsat. The vote is a reference to a May 2024 resolution where 143 nations backed enhanced rights for Palestine, underscoring growing international isolation for Israel and its key allies on this issue. This diplomatic pressure, amplified by the ongoing conflict in Gaza, could translate into increased calls for economic sanctions or other financial measures. While the resolution is non-binding and full UN membership remains blocked by a United States veto in the Security Council, the overwhelming support in the General Assembly affects international political risk assessments and could influence foreign direct investment and trade relations.

Israel has held discussions with South Sudan regarding the potential for Palestinians to voluntarily leave the Gaza Strip for the African country, Israel National News said in a report. The article noted that the information about the talks originated from the AP news agency.

The Masam project, funded by Saudi Arabia’s King Salman Humanitarian Aid and Relief Centre (KSrelief), removed 1,140 explosives, including landmines and unexploded ordnance, from various regions in Yemen in the second week of August, Asharq Al-Awsat says in a report. The clearance of these devices is a prerequisite for the resumption of agricultural activities and the safe return of displaced populations in the war-torn country. This demining work also addresses a key risk factor for potential future investment in reconstruction and infrastructure.

The artificial intelligence chatbot Grok, developed by Elon Musk’s xAI company, was briefly suspended from the social media platform X after it generated responses to multiple users characterising Israel’s military operations in the Gaza Strip as a genocide, as per a report in The New Arab. The suspension was reportedly implemented after the AI’s posts gained attention on the platform.

Iraq is exploring new oil export routes, including using Lebanon’s Tripoli port and potentially reviving the Kirkuk-Baniyas pipeline through Syria, according to a report in Asharq Al-Awsat. This strategic initiative aims to diversify Iraq’s export channels, reducing its current dependence on the Turkish Ceyhan pipeline and maritime routes via the Persian Gulf. The revival of the pipeline to Syria, which has been inoperative for decades and was damaged during the civil war, would require substantial reconstruction and investment. The proposal presents a potential economic lifeline for crisis-hit Lebanon through transit fees, but also faces significant geopolitical and security challenges, notably the unstable security situation in Syria and potential complications from international sanctions targeting the Syrian government.

Iran has stated that direct nuclear talks with the United States could be possible, provided that ‘suitable conditions’ are established, as per a report in Asharq Al-Awsat. This potential diplomatic shift is viewed as a response to severe economic pressure from ongoing US sanctions, particularly on its financial and oil export sectors. The statement comes after years of stalled, indirect negotiations to revive the 2015 nuclear deal (JCPOA). Iran’s preconditions have historically included the complete lifting of sanctions, which, if met, could reintroduce significant volumes of Iranian crude to the global market and open the country to international trade and investment.

A significant frost event in Turkey has damaged the nation’s hazelnut crops, creating a substantial threat to global supply chains and consumer prices, according to a report in Deutsche Welle. As the supplier of over 70% of the world’s hazelnuts, the crop failure is expected to cause a sharp increase in costs for major confectionary companies such as Ferrero, the maker of Nutella and Ferrero Rocher. This supply-side shock is poised to exacerbate Turkey’s pre-existing economic challenges, including a severe cost-of-living crisis and persistently high food inflation. The development places significant pressure on President Erdoğan’s government to deliver financial aid to the heavily impacted farmers, primarily in the Black Sea region, which could further strain the national budget. For the global food industry, the event highlights the risks of supply chain concentration and may prompt a strategic re-evaluation of sourcing key agricultural commodities.

Officials from Jordan, Syria, and the United States held a meeting in Amman to discuss Syrian reconstruction, according to a report in Al Jazeera. The discussions also focused on supporting the Syrian government’s efforts to consolidate a ceasefire in the Suwayda province, a region that has experienced significant anti-government protests. This meeting is part of Jordan’s broader ‘step-by-step’ strategy to re-engage with the Syrian government, which follows Syria’s readmission to the Arab League in May 2023.

Israeli Prime Minister Benjamin Netanyahu has downplayed policy differences with Finance Minister Bezalel Smotrich, stating there are no significant disagreements between them on the issue of occupying Gaza, Israel National News says in a report. The statement aligns the Prime Minister with the hardline position of Smotrich, a key far-right figure in the ruling coalition who advocates for permanent Israeli control over the territory. This public alignment on policy is in direct contrast to the stance of international partners, including the United States, who advocate for post-conflict Palestinian self-governance and could increase diplomatic tensions. The stated policy direction reinforces that Israel intends to maintain long-term security control over Gaza, which complicates international discussions about post-conflict reconstruction efforts.

A peace plan for the South Caucasus, reportedly brokered by Donald Trump prior to his current presidential term, has elicited a complex and mixed reaction from Iran, Deutsche Welle says in a report. The proposal centres on a new US-backed transit corridor between Armenia and Azerbaijan, widely believed to be the contentious Zangezur Corridor. From a strategic perspective, Tehran is concerned the plan could increase US influence near its borders and sideline Iran’s crucial land routes to Armenia. Economically, however, pragmatists in Tehran may see benefits in the regional stability and new trade opportunities a lasting peace agreement could foster, offering a potential boost to its sanctions-hit economy.

The United States Department of Justice has formally accused George Washington University of being “deliberately indifferent” to antisemitic behaviour on its campus, a move that could have severe financial repercussions for the institution, Israel National News says in a report. The accusation, stemming from Title VI of the Civil Rights Act, carries the potential withdrawal of all federal funding, a critical revenue stream that includes research grants and student financial aid. This action by the Trump administration’s DOJ places other higher education institutions on notice, highlighting the significant operational and reputational risks associated with the management of campus climate, particularly concerning issues linked to the Israeli-Palestinian conflict. The precedent could compel universities nationwide to reassess their policies to mitigate the risk of similar financially damaging federal interventions.

Israeli Prime Minister Benjamin Netanyahu has defended a plan to take control of Gaza City amid widespread international outrage, calling it the ‘best way to end the war… speedily,’ as per a report in The Guardian. The plan, which was approved by Israel’s security cabinet last week, has drawn criticism both domestically and internationally. Netanyahu’s defense comes as senior UN officials warn the move could unleash ‘another calamity’ and that the territory is already experiencing ‘starvation, pure and simple.’

An investigation has uncovered evidence of coordinated gunfire targeting civilians at food distribution sites in Gaza, with almost 1,400 Palestinians reportedly killed while seeking aid, according to a report in The Guardian. These incidents have occurred since Israel dismantled the UN-led humanitarian system and replaced it with a “militarised model” run by the Gaza Humanitarian Foundation (GHF), which has close ties to Israeli authorities. Separately, Israeli Prime Minister Benjamin Netanyahu has defended his plan to take control of Gaza City despite warnings from UN officials. In another recent development, Israel reportedly admitted to deliberately killing Al Jazeera journalist Anas al-Sharif in an airstrike on Sunday.

The United Nations Security Council met on Sunday to discuss Israel’s stated plan for its military to ‘take control’ of Gaza City, according to a report in The Guardian. During the meeting, numerous ambassadors condemned the Israeli plan. Ramesh Rajasingham, the coordination director of the UN’s humanitarian office, stated the action would result in a ‘further human toll,’ while other UN warnings highlighted that Gaza is facing ‘starvation, pure and simple’ amid mounting child deaths.

An Israeli airstrike in Gaza City on Sunday resulted in the deaths of five journalists, leading to international condemnation, as per a report in The Guardian. The attack hit a tent for journalists outside al-Shifa hospital, killing Al Jazeera’s Anas al-Sharif and Mohammed Qreiqeh, along with camera operators Ibrahim Zaher, Mohammed Noufal, and Moamen Aliwa. Following the strike, hundreds of mourners participated in a funeral procession, carrying the bodies through the city’s streets.