West Asia News Live: Saudi-Iraq economic talks, Al-Aqsa tensions, Iran’s crackdown mark a volatile day

Israel’s High Court of Justice has issued a temporary injunction preventing the government of Prime Minister Benjamin Netanyahu from dismissing Attorney General Gali Baharav-Miara, according to a report in Al Jazeera. The decision represents a significant check on executive power amid ongoing tensions over the government’s proposed judicial overhaul and Netanyahu’s personal corruption trials, for which Baharav-Miara is the chief prosecutor. This judicial intervention, whilst potentially reassuring for investors concerned about the rule of law, also signals prolonged political and constitutional instability. The continued clash between the government and the judiciary could weigh on investor confidence and introduce further volatility into Israeli markets, as it highlights deep-seated governance risks.

A British couple detained in Iran for seven months on espionage charges has been moved to separate prisons in and near Tehran, heightening fears for their welfare, according to a report in The Guardian. Lindsay and Craig Foreman were seized in Kerman in early January while on a round-the-world motorbike trip. Their son reported the latest development on Monday, expressing concern over the separation.

A British couple, Lindsay and Craig Foreman, are being held in Iran, with their son, Joe Bennett, claiming they have been placed in solitary confinement in the nation’s worst prisons, BBC says in a report. This development significantly raises diplomatic tensions between London and Tehran, which are already strained over issues including Iran’s nuclear programme and regional activities. The incident is consistent with what human rights organisations describe as a long-standing Iranian practice of detaining foreign and dual nationals, often on vague security charges, to use as leverage in international negotiations. The situation presents a complex challenge for the UK government and contributes to the broader climate of geopolitical risk and distrust between Iran and Western powers, potentially complicating wider diplomatic engagement on economic sanctions and regional security.

Egypt and Jordan are bolstering their energy co-operation, a strategic move with significant economic implications for both nations, as per a report in Asharq Al-Awsat. The agreement is set to enhance Jordan’s energy security, addressing its critical dependency on imports which account for over 90% of its energy needs. For Egypt, this reinforces its position as a key regional energy hub and net exporter of natural gas, creating new revenue streams and diversifying its export markets. This strengthened partnership leverages existing infrastructure, such as the Arab Gas Pipeline, and is indicative of a broader trend towards greater economic integration and energy interdependence in West Asia and the Eastern Mediterranean.

The Yemeni rial has appreciated by approximately one-third of its value in regions under the control of the internationally recognised government, a significant development in the nation’s war-torn economy, Asharq Al-Awsat says in a report. This recovery is attributed to a concerted push by the Presidential Leadership Council (PLC), operating from Aden, to curb hyperinflation and stabilise prices for citizens. The measures are reportedly supported by crucial foreign currency injections and financial aid from allies including Saudi Arabia and the UAE, which provide the Aden-based central bank with the liquidity needed for its monetary policies. This economic gain for the PLC-governed areas contrasts with the situation in Houthi-controlled territories, highlighting the country’s deep economic fracture and the existence of dual monetary systems.

The Gaza Health Ministry announced that 94 people have been killed within a 24-hour timeframe as the conflict and humanitarian crisis in the region continue to escalate, according to a report in Haaretz. The reported fatalities are a result of the ongoing military operations in the Gaza Strip. International bodies and aid agencies note that these figures, while difficult to independently verify, underscore the severe conditions, including a collapsed healthcare system and widespread shortages of food, water, and medical supplies. The ministry’s figures typically do not differentiate between combatants and civilians in initial reports.

A lawsuit seeking damages exceeding $1 billion has been filed against Meta by families of the victims of the October 7, 2023, attacks, Israel National News says in a report. The plaintiffs allege that Meta’s platforms, including Facebook and Instagram, facilitated the Hamas-led attacks by allowing them to be livestreamed, which they claim caused significant emotional and psychological trauma. This legal action presents a substantial financial and reputational risk for Meta, potentially establishing a major precedent for the liability of technology platforms regarding user-generated content in conflict zones and could intensify regulatory scrutiny over its content moderation policies.

The long-stalled investigation into the 2020 Beirut port explosion is reportedly nearing its conclusion, a development with significant economic implications for crisis-hit Lebanon, Asharq Al-Awsat says in a report. The outcome is a critical test for the country’s judiciary and could directly influence future international aid, diplomatic relations, and the imposition of sanctions against Lebanese officials. A verdict perceived as credible could restore some confidence, whereas a failure to deliver justice for the blast—caused by negligently stored ammonium nitrate—risks further international disengagement and could exacerbate public unrest, further destabilising the nation’s fragile economy.

Saudi Arabia’s Ministry of Finance has formally welcomed the conclusions of the International Monetary Fund’s (IMF) 2025 Article IV consultation, a move seen as reinforcing its commitment to economic reforms under the Vision 2030 agenda, Asharq Al-Awsat says in a report. The public endorsement of the IMF’s routine assessment is strategically significant for financial markets, as it aims to bolster international investor confidence by signalling transparency and fiscal discipline. This development is particularly crucial for attracting foreign direct investment into the Kingdom’s burgeoning non-oil sectors. By engaging proactively with international financial institutions amidst global economic uncertainty, Saudi Arabia seeks to underscore its economic stability and enhance its standing as a key player in global economic governance.

Five members of the Syrian Democratic Forces (SDF) were killed during an attack attributed to ISIS in Syria, Asharq Al-Awsat said in a report. The incident highlights the persistent security threat posed by the ISIS insurgency in the region, which continues to operate through sleeper cells and conduct attacks despite its territorial defeat in 2019. The SDF, a key US partner in counter-terrorism operations, remains engaged in efforts to combat the group’s resurgence in northeastern Syria.

A group of prominent former Israeli security chiefs, including past heads of the IDF, Shin Bet, and Mossad, has publicly criticised the government’s handling of the Gaza war, describing it as ‘futile’ due to the absence of a clear political strategy, Haaretz says in a report. Their main criticism centres on the lack of a viable ‘day after’ plan for the governance and stability of Gaza, suggesting that military achievements may be unsustainable. This public dissent from respected security figures is amplifying political pressure on Prime Minister Benjamin Netanyahu’s government and could heighten market uncertainty, potentially impacting investor confidence and the stability of the Israeli shekel as the conflict’s economic costs continue to mount without a clear endgame.

Saudi Arabia’s Crown Prince Mohammed bin Salman and Kuwait’s Prime Minister held a meeting to reaffirm their countries’ historic ties and discuss enhancing collaboration, Asharq Al-Awsat said in a report. The discussions are part of wider regional efforts to bolster unity within the Gulf Cooperation Council (GCC). Key areas of shared interest include coordinating on economic diversification strategies, such as Saudi Arabia’s Vision 2030, and aligning on energy policies as key members of OPEC+.

Saudi Arabia has executed 17 people in three days, bringing the year’s total to 239 in the fastest pace of capital punishment seen since 2022. This surge in executions presents a significant challenge to the economic reform narrative of Crown Prince Mohammed bin Salman’s Vision 2030. The development is drawing renewed scrutiny from human rights organisations and complicates the kingdom’s efforts to improve its international image. For foreign investors and businesses, the executions heighten Environmental, Social, and Governance (ESG) risks, potentially deterring investment from companies sensitive to reputational damage and ethical mandates, thereby casting a shadow over the country’s ambitions to attract foreign capital and diversify its economy.

A significant protest is planned for Saturday in London calling for the UK government to reverse its proscription of the group Palestine Action, according to a report in The Guardian. The Metropolitan Police have warned that individuals showing public support for the banned organisation could be arrested, potentially leading to a large-scale police operation. The demonstration follows the government’s decision on 5 July 2025 to ban Palestine Action under terrorism legislation.

Israel is reportedly engaging with and supporting local clans in Gaza to establish alternative governance and security structures in a post-Hamas landscape, according to a report in The Washington Post. This strategy is part of Israel’s planning for the period after the conflict and aims to fill the power vacuum left by the degradation of Hamas’s administrative control. The move is also seen as a way to bypass both Hamas and the Palestinian Authority, which Israel reportedly views as unable or unwilling to assume control. This approach, however, risks empowering local strongmen and potentially leading to internal Palestinian divisions and conflict over resources and influence.

The International Fellowship of Christians and Jews has mobilized and delivered emergency aid to minority communities in the Sweida region of Syria, Fox News said in a report. The assistance is targeted at Druze and Christian populations who have recently faced attacks from extremist groups.

A statement from Shas party chairman Aryeh Deri, urging yeshiva students to refuse military enlistment even during wartime, has highlighted deep divisions within Israel’s government, according to a report in Israel National News. Deri’s declaration comes as Prime Minister Benjamin Netanyahu’s coalition, which relies on ultra-Orthodox parties like Shas, faces pressure to legislate a new conscription law following Supreme Court rulings that demand more equitable national service. The stance on military exemptions for the ultra-Orthodox community is a central point of social and political tension, particularly amid the country’s ongoing military operations and need for manpower.

A Palestinian farmhouse in the West Bank was torched in an attack attributed to Israeli settlers, who also spray-painted the phrases ‘Revenge’ and ‘Price Tag’ on the property’s walls, according to a report in Haaretz. The Palestinian owner of the farm stated that providing information to the Israeli army and police about the perpetrators’ origins has proven ineffective. This type of incident is commonly referred to as a ‘price tag’ attack, a tactic used by extremist settlers in retaliation for actions they oppose.

A new policy from the administration of US President Donald Trump now requires American states to have measures opposing the boycott of Israel in order to receive federal disaster aid, Haaretz says in a report. This move, aimed at countering the Boycott, Divestment, Sanctions (BDS) movement, links critical humanitarian and recovery funding to a foreign policy position. The policy creates a new compliance requirement for companies with state-level contracts, as they may need to adopt specific corporate stances on the issue to remain eligible for public tenders. Sectors reliant on post-disaster reconstruction, such as engineering and construction, will now have to navigate these state-level political requirements for federally-funded projects.

Residents of Gaza’s al-Zeitoun neighbourhood are returning to find their homes and infrastructure in ruins following the conclusion of a 45-day Israeli military operation, as per a report in Al Jazeera. The extensive destruction highlights the severe humanitarian crisis and points towards immense future reconstruction costs, which will necessitate significant international aid and place a substantial financial burden on donor nations and organisations. The event underscores the economic consequences of the ongoing conflict, contributing to regional instability that can affect investor confidence and markets across West Asia.

Greece and Cyprus are opposing Turkey’s participation in the European Union’s SAFE loan programme over long-standing disputes regarding maritime boundaries and the division of Cyprus, according to a report in Al-Monitor. This move creates a division within the EU, as other major powers, including Germany and Italy, are simultaneously strengthening their strategic and defence cooperation with Ankara. The situation highlights the complex dynamics of the region, where some EU states are prioritising solidarity with fellow members Greece and Cyprus, while others are focusing on Turkey’s strategic importance amid shifting regional alliances.

Saudi Arabia’s Ministry of Industry and Mineral Resources has established a new non-profit association to govern the country’s precious metals and gemstones sector, as per a report in Asharq Al-Awsat. The initiative is a key component of the Kingdom’s Vision 2030 strategy, which aims to diversify the national economy away from oil by developing non-oil industries. The new body is intended to formalise and regulate the sector, improve the business environment to attract foreign investment, and enhance the Kingdom’s competitiveness against established regional hubs such as Dubai. The association’s objectives include standardising quality, strengthening consumer protection, and creating a more transparent market for domestic businesses and international investors.

US President Donald Trump has publicly rejected the characterisation of the Gaza war as a genocide, instead highlighting the events of October 7 as the conflict’s origin, The Times of Israel reported. From a market perspective, the statement reinforces a strong alignment with Israel, potentially impacting geopolitical risk calculations for investors in West Asia and influencing sectors sensitive to regional stability, such as defence and energy. Trump also affirmed a commitment to humanitarian efforts, stating, ‘We want the people fed,’ and noted that his envoy, Steve Witkoff, visited the region to help formulate a new aid delivery plan.

More than a dozen US House Democrats have signed a letter pressing the Trump administration to formally recognise a Palestinian state, Al-Monitor says in a report. The move, which was first reported by Axios, also includes a plan by at least one lawmaker to introduce a pro-statehood resolution. This development signals a notable policy division within the US political landscape regarding West Asia, introducing a degree of geopolitical uncertainty that could influence investor sentiment and risk assessments for businesses with exposure to the region.

Jordan’s vital tourism sector is suffering a severe downturn due to the ongoing Israel-Hamas war, with official figures showing a substantial drop in international visitors, according to a report in Al-Monitor. The Petra Development and Tourism Region Authority reported that visitor numbers to the famed ancient city fell by 61% in 2024 compared to the previous year. Although Jordan is not a direct party to the war, the perception of widespread regional instability has deterred tourists. This slump presents a considerable economic risk for the country, where tourism is a cornerstone of the economy, contributing significantly to GDP and employment. The situation underscores the economic vulnerability of even stable regional actors to nearby conflicts and creates domestic pressure on the Jordanian government to navigate the economic fallout while managing strong public sentiment on the issue.

The Israeli government has approved a NIS 3.2 billion (approx. $850 million) budget for the reconstruction and development of communities in the Negev and Ashkelon following the October 7, 2023 attacks, Israel National News said in a report. Prime Minister Benjamin Netanyahu stated the funds are for the “rebuilding, development and renewal” of the affected areas. This significant expenditure adds to the financial burden of the ongoing conflict and recovery efforts, which could impact Israel’s national debt and budget deficit. The allocation is a key part of the government’s post-crisis recovery plan but also highlights the substantial economic costs associated with the war and reconstruction.

Israel has successfully completed a planned series of developmental flight tests for the David’s Sling Weapon System, Israel National News said in a report. These tests are a component of the system’s operational learning process. David’s Sling is an air defence system, jointly developed by Israel’s Rafael Advanced Defense Systems and the US firm Raytheon, designed to intercept threats such as tactical ballistic missiles, medium-to-long-range rockets, and cruise missiles, forming a key middle tier in Israel’s multi-layered national air defence network.

The United Nations has issued a stark warning that every child under five years old in the Gaza Strip faces a significant risk of malnourishment, according to a report in Al Jazeera. This alert comes as the Gaza Strip’s Health Ministry has registered an increasing number of paralysis cases among children, which are being directly attributed to severe malnutrition amid the ongoing conflict and humanitarian crisis.

Israel has resumed airdropping food supplies into Gaza amid reports of increasing deaths from starvation in the besieged enclave, according to a report in The Washington Post. The move comes as land-based aid delivery routes remain insufficient to address the severe humanitarian crisis. Humanitarian organizations widely consider airdrops a last-resort measure, highlighting the critical food shortages and the difficulties in getting sufficient aid to the Gazan population through ground crossings.

US House of Representatives Speaker Mike Johnson conducted an official visit to Ariel, a major Israeli settlement located in the West Bank, Israel National News says in a report. During the visit, where he was accompanied by former Arkansas Governor Mike Huckabee and current Arkansas Governor Sarah Huckabee Sanders, Speaker Johnson asserted that the territory, referring to it by the biblical names “Judea and Samaria,” belongs to the Jewish people. This high-profile visit by a sitting US Speaker to a settlement area represents a significant public endorsement of Israeli claims and settlement policy in the contested region.

The conclusion of Israel’s ‘Gideon’s Chariots’ military operation without achieving its main goals heightens political and security uncertainty in West Asia, with potential implications for regional markets and investor sentiment, The Times of Israel said in a report. The failure to dismantle Hamas, secure the release of hostages, or establish a clear post-conflict order suggests a prolonged period of instability. This outcome is likely to increase domestic political pressure on the Israeli government, potentially leading to political volatility that could affect Israel’s economic outlook. For investors, the unfulfilled objectives signal continued geopolitical risk in the region, which could influence oil prices, defence sector valuations, and foreign direct investment flows.

Amid an escalating hunger crisis and intense international pressure, Israel has stated it will carry out “tactical pauses” in parts of Gaza to facilitate greater humanitarian aid delivery, The Washington Post said in a report. As part of the move to alleviate the severe humanitarian conditions, Israel has also restarted power to a critical water treatment plant. The decision is a direct response to demands from international bodies and allies for increased humanitarian access to address the crisis facing the civilian population.

The UK’s Royal Ballet and Opera (RBO) has withdrawn its 2026 production of ‘Tosca’, which was scheduled to be held at the Israeli National Opera in Tel Aviv, The Guardian reports. The cancellation was confirmed in an internal announcement by RBO chief executive Alex Beard. This decision was made after an open letter, signed by almost 200 members of the Royal Opera and Ballet, criticised the organisation’s position on the situation in Gaza.

A teenager injured by gunfire from an Israeli Border Police officer in the West Bank, in an area located between the Beit El settlement and the Givat Asaf outpost, has been released from the hospital to continue recovery at home, Israel National News said in a report. In response to the event, a group of rabbis has publicly called for a formal investigation into the circumstances surrounding the shooting.

Australian Prime Minister Anthony Albanese has stated that the prospect of punitive tariffs from the administration of US President Donald Trump will not deter Australia’s move towards recognising a Palestinian state, a decision he termed a ‘necessary precondition for peace’, according to a report in The Guardian. The move signals a potential strain in trade relations with a key economic partner. Albanese is reportedly seeking discussions with Israeli Prime Minister Benjamin Netanyahu this week, as his government moves to align its foreign policy on the issue with other Western nations, despite the potential for economic headwinds from Washington.

An Israeli military veteran, reportedly suffering from PTSD following his service in the 2014 Operation Protective Edge, was hospitalised for emergency psychiatric care after an incident at a Defense Ministry facility, as per a report in Israel National News. The veteran reportedly poured a liquid on himself and attempted to enter a rehabilitation office. He was subsequently transported to Rambam Medical Center for treatment.

Arkansas Governor Sarah Huckabee Sanders, accompanied by her father and former governor Mike Huckabee, visited the Western Wall in Jerusalem to voice support for Israel, according to a report from Israel National News. The visit reinforces the strong pro-Israel stance within the US Republican party and resonates with the evangelical Christian community, a key base of support. The source material incorrectly identified Mike Huckabee as a ‘US Ambassador,’ a detail that has been corrected to reflect his status as a former governor.

An Israeli district court has acquitted David Chai Hasdai of all charges related to an incident involving five Bedouin women, according to a report in Israel National News. Hasdai, a resident of the Givat Ronen outpost in the West Bank, had been accused of attempting to lynch the family members in what was described as a racist assault. The defendant’s attorney characterized the court’s decision to clear Hasdai as ‘courageous’.

A total of 262 crocodiles were shot and killed at an abandoned farm in the Israeli settlement of Petzael, located in the West Bank’s Jordan Valley, Israel National News says in a report. The decision to cull the animals was made after repeated escapes posed a public safety risk, following a period of severe neglect at the facility and the failure of previous efforts to relocate them. The action has prompted condemnation from animal rights activists.