West Asia News Live: WHO flags Gaza crisis as Iran-Taliban ties, Syria probe raise tensions

Israel is reportedly considering a withdrawal of defence and security cooperation with the United Kingdom if the British government moves forward with its plan to formally recognise a Palestinian state, as per a report in Israel National News. Diplomatic sources have warned of significant security and economic fallout from such a decision, which would impact extensive intelligence sharing, joint military exercises, and defence trade between the two nations. The potential Israeli action is a response to indications from UK Foreign Secretary David Cameron that Britain could recognise a Palestinian state before a final peace agreement is reached, a shift from its long-standing policy. This development highlights a potential diplomatic and economic rift between the two allies amid renewed international pressure for a two-state solution.

Saudi Arabia is pushing forward with the development of the Jafurah field, one of the region’s largest unconventional non-associated gas reserves, as per a report in Asharq Al-Awsat. This initiative is a cornerstone of Crown Prince Mohammed bin Salman’s Vision 2030, representing a strategic pivot from the kingdom’s historical reliance on oil. The project aims to utilise the gas for domestic power generation and industrial feedstock, which will in turn free up significant volumes of crude oil for export. The development positions Saudi Arabia to become a major player in the global gas market, potentially impacting liquefied natural gas (LNG) prices and increasing regional competition with established exporters such as Qatar. This move enhances the kingdom’s energy portfolio and geopolitical influence while supporting its long-term economic diversification goals.

Israel is seeking to delay a judicial hearing concerning access for the International Committee of the Red Cross (ICRC) to visit Palestinian prisoners for the 20th time, according to a report in Haaretz. The repeated requests for postponement prevent a definitive court ruling on the matter, which is mandated under the Geneva Conventions to ensure humane treatment and monitoring of detention conditions. This ongoing legal situation highlights a persistent dispute over international humanitarian law and oversight, potentially increasing political risk and impacting international relations and investor perceptions of regional stability.

Lebanon’s army announced that its troops have killed three of the country’s most wanted drug dealers, Asharq Al-Awsat says in a report. This security operation takes place as Lebanon continues to grapple with a severe economic crisis that has fueled illicit activities, including the drug trade. The country has faced significant international pressure, particularly from Gulf nations, to curb the production and trafficking of drugs such as Captagon, which are often smuggled into the region.

Prominent Jewish philanthropists have stated that the policies of Israeli Prime Minister Benjamin Netanyahu’s government are causing ‘lasting damage’ to the relationship between Israel and global Jewish communities, as per a report in Haaretz. The criticism reportedly stems from several key issues, including the controversial judicial overhaul initiated in 2023, the government’s handling of the war in Gaza, the expansion of settlements in the West Bank, and policies viewed as undermining religious pluralism. These actions are said to be alienating significant portions of the Jewish diaspora, particularly liberal and non-Orthodox communities concerned about Israel’s democratic character.

The severe and persistent hunger in Gaza, where residents are struggling with meagre food supplies, signals a deepening humanitarian catastrophe with considerable economic and geopolitical consequences for West Asia, Asharq Al-Awsat says in a report. The ongoing conflict and intensified blockade have crippled Gaza’s food systems, leading to UN warnings of famine and creating a situation that threatens broader regional stability. This sustained crisis places immense pressure on international relations, particularly for Israel and key Arab states, and introduces significant volatility into regional markets. The potential for further escalation and the massive cost of humanitarian aid and future reconstruction represent substantial economic risks and challenges to investor confidence across the area.

Saudi Arabia has announced the launch of the inaugural Tar Festival in Riyadh, an event designed to celebrate and promote the country’s traditional musical heritage, Asharq Al-Awsat said in a report. The festival, which spotlights the ‘Tar’, a traditional stringed instrument, is a key component of the kingdom’s broader cultural development strategy. This initiative aligns with the goals of Saudi Vision 2030, which seeks to diversify the economy beyond oil by fostering new sectors such as tourism and entertainment, and is part of a series of social reforms aimed at expanding cultural and public life within the country.

Israeli airstrikes in eastern Lebanon have resulted in at least six deaths and ten injuries, significantly heightening geopolitical risk in West Asia, Al Jazeera says in a report. This military escalation comes at a critical time, occurring just as the Lebanese government formally endorsed a US-backed diplomatic proposal aimed at the disarmament of Hezbollah. The incident undermines these de-escalation efforts and injects fresh uncertainty into regional markets. For businesses and investors, the continued conflict between military actions and diplomatic initiatives exacerbates Lebanon’s severe economic crisis, further damaging investor confidence and highlighting the profound instability that threatens any potential economic recovery in the nation and poses a wider risk to the region.

The Palestine Football Association (PFA) announced that footballer Suleiman al-Obeid has been killed in southern Gaza, according to a report in The Guardian. The PFA alleges that al-Obeid, known as the ‘Palestinian Pelé’, died on Wednesday when Israeli forces attacked a group of civilians who were waiting to receive humanitarian aid.

More than 200 writers, including prominent figures such as Zadie Smith, Michael Rosen, Irvine Welsh, and Jeanette Winterson, have signed a letter demanding an “immediate and complete” boycott of Israel, as per a report in The Guardian. The letter advocates for the cessation of all “trade, exchange and business” with the country. This action is called for to continue until the people of Gaza are provided with adequate food, water, and humanitarian aid. Other signatories mentioned include Hanif Kureishi, Brian Eno, and Elif Shafak.

Sudanese state television has claimed the country’s military destroyed an aircraft from the United Arab Emirates that was allegedly transporting Colombian mercenaries to support the rival Rapid Support Forces (RSF), as per a report in Al Jazeera. The incident, occurring within Sudan’s protracted civil war, amplifies allegations of the UAE’s direct intervention and support for the RSF, posing significant geopolitical and reputational risks for the West Asian nation. Colombian President Gustavo Petro confirmed his government is investigating the number of Colombian nationals involved. This escalation underscores the growing geopolitical instability in the region, which could impact investor confidence and risk perceptions concerning the UAE’s role in foreign conflicts.

Iran is facing a significant water crisis after five straight years of drought have left the country’s water resources critically low, according to a report in Foreign Policy. While the prolonged drought is a primary cause, the situation is severely worsened by what experts describe as decades of unsustainable water policies, including excessive dam building, inefficient agricultural practices, and the over-extraction of groundwater. This scarcity has become a major source of social unrest, leading to significant water-related protests in several provinces. The crisis also has regional implications, contributing to diplomatic tensions with neighbouring countries like Afghanistan over shared water resources.

Advocacy group StopAntisemitism is calling for retailer Sephora to end its commercial partnership with Huda Beauty, Israel National News said in a report. The demand follows allegations that the brand’s founder, Huda Kattan, posted a video on TikTok with comments perceived as antisemitic, reportedly blaming Israel for major global events. The situation presents a significant commercial and reputational risk for both companies, placing Sephora in a difficult position where any decision—either retaining or dropping the popular brand—could lead to consumer backlash and boycotts from opposing sides of the highly-polarised issue. This incident highlights the increasing financial risks for global consumer brands navigating sensitive geopolitical conflicts.

Egypt has abolished its long-standing rent control system, a move officials state will rebalance a housing market distorted by decades-old regulations, as per a report in The New York Times. The policy change is part of a wider economic reform programme aimed at attracting real estate investment and liberalising key sectors of the economy. While the government’s objective is to stimulate new construction and allow market forces to dictate prices, the termination of the controls is anticipated to have severe consequences for low-income and middle-class residents who face displacement and sharply increased housing costs. For property owners and developers, the new law presents significant financial opportunities, allowing them to charge market rates and redevelop properties that were previously unprofitable, potentially unlocking substantial investment in the housing sector.

The 95-year-old leader of the Lithuanian Haredi community has visited detainees in Beit Lid military prison to show support for those refusing to enlist in the Israeli military, according to a report in Israel National News. This visit occurs amidst a contentious national debate over a new conscription law, an issue that poses a significant threat to the stability of the current governing coalition. The Haredi community’s firm stance against mandatory service, now publicly reinforced by its leadership, clashes with growing public and judicial pressure for equal burden-sharing, particularly as the military faces increased manpower needs. For investors and markets, this deep-seated social and political conflict represents a notable risk, as a potential coalition crisis could disrupt policy-making and impact economic sentiment.

An official from the current Trump administration, also described as an envoy for Senator Marco Rubio, held clandestine meetings in Bnei Brak with senior Degel Hatorah leaders Rabbi Dov Lando and Rabbi Moshe Hillel Hirsch, Israel National News said in a report. The discussions reportedly centred on potential US intervention in Israel’s ongoing Haredi military draft crisis, a deeply divisive issue that threatens the stability of the governing coalition. This act of unofficial diplomacy bypasses established state channels and introduces significant political uncertainty. For investors, this development elevates the political risk profile for Israel, as any event that could precipitate the collapse of the government has direct implications for economic policy, market sentiment, and the stability of the Israeli shekel.

President Donald Trump has stated his desire for all nations in the Middle East to establish formal diplomatic relations with Israel, urging them to join the Abraham Accords, as per a report in Al Jazeera. In his remarks, Trump invoked the threat from Iran’s nuclear program, referencing past attacks on its nuclear sites as a rationale for countries in the region to form a united front with Israel.

Former Israeli Prime Minister Ehud Olmert has endorsed a call by fellow former PM Ehud Barak for civil disobedience to bring down the current government, according to a report in Israel National News. In an interview with foreign media, Olmert expressed his support for the action and claimed that the government is effectively run by ministers Itamar Ben-Gvir and Bezalel Smotrich.

The United Nations has reported a severe health crisis among children in Gaza, with over 12,000 identified as malnourished, according to a report in Haaretz. The data highlights the gravity of the situation, specifying that 2,562 of these children are suffering from severe malnutrition, a critical condition requiring immediate medical intervention. These findings underscore the dire humanitarian conditions in the region resulting from the ongoing conflict and disruptions to essential aid.

Türkiye’s Treasury and Finance Minister Mehmet Şimşek has affirmed the government’s commitment to seeing its disinflation process through for long-term stability, Asharq Al-Awsat says in a report. This statement underscores the country’s ongoing shift towards more orthodox economic policies, which are aimed at curbing persistently high inflation that has remained around 70%. The economic pivot is also intended to restore confidence amongst international investors and address the domestic cost of living crisis, a key issue that influenced recent local election outcomes.

Saudi Aramco is continuing its substantial dividend payouts despite global economic headwinds, ensuring a critical flow of capital for Saudi Arabia’s national budget and its Vision 2030 diversification plan, as per a report in Asharq Al-Awsat. The majority of these dividends are directed to the Saudi government, primarily through the Public Investment Fund (PIF), which uses the funds for its ambitious domestic mega-projects like NEOM and for its global investment strategy. The company’s ability to sustain these payments is supported by a stable oil price environment, which has been influenced by recent production decisions led by Saudi Arabia within the OPEC+ alliance.

A senior European Union official has stated that the crisis in Gaza “looks very much” like genocide, a politically charged declaration that heightens international pressure on Israel, according to a report in Asharq Al-Awsat. The statement highlights potential divisions within the EU’s 27-member bloc, increasing pressure on it to adopt a more critical stance towards Israel and impacting its role as a global human rights advocate. For Israel, such comments from a major trading partner add to its growing diplomatic isolation and increase the risk of intensified calls for sanctions, placing further strain on its allies, notably the United States. The US, as Israel’s primary supporter, faces increased pressure to address the humanitarian situation, potentially indicating a policy divergence with key Western powers. This political commentary adds weight to the ongoing case at the International Court of Justice, where Israel faces allegations of violating the Genocide Convention.

Riyadh is set to host a significant summit featuring the leaders of the six Gulf Cooperation Council (GCC) monarchies—Saudi Arabia, the UAE, Qatar, Kuwait, Bahrain, and Oman, Asharq Al-Awsat says in a report. The meeting is anticipated to centre on enhancing economic integration and regional security, with a strong focus on attracting foreign direct investment and establishing joint investment funds. This aligns with broader strategic goals, such as Saudi Arabia’s Vision 2030 for economic diversification, and occurs within a geopolitical context of regional de-escalation. The summit aims to create a unified policy front, which could bolster investor confidence by signalling increased stability in the strategically vital region.

Demonstrators identified as members of the radical Jerusalem Faction blocked Route 4 in central Israel on Thursday in a protest against the arrest of ultra-Orthodox men for evading military conscription, Israel National News says in a report. During the confrontation, some participants reportedly threw rocks and directed insults at police officers, including calling them ‘Nazis’. The protest occurs amidst a long-standing national debate over military service exemptions for the Haredi community, an issue intensified by recent Supreme Court rulings against state funding for yeshiva students who do not report for military service.

Israel has claimed responsibility for a strike that killed a Hezbollah operative in eastern Lebanon, escalating the long-running, low-intensity conflict between the two, Asharq Al-Awsat says in a report. From a market perspective, this development heightens the risk of a full-scale war, which could have severe economic consequences for the region and beyond. Such a conflict would threaten key shipping lanes in the eastern Mediterranean and potentially impact oil and gas production and transport. The increased instability complicates US-led diplomatic efforts aimed at de-escalation, creating further uncertainty for investors and businesses operating in or exposed to the region. The action underscores the persistent geopolitical risk premium affecting assets in West Asia.

The United Kingdom’s ambassador to Israel has issued a stark warning that any expansion of the war in Gaza would constitute a ‘huge mistake’, Haaretz says in a report. This statement is understood to be a direct caution against escalating hostilities into a full-scale conflict on Israel’s northern border with Hezbollah in Lebanon. The ambassador’s comment aligns with a broader, unified diplomatic front from Western powers, including the US, aimed at de-escalating the situation and preventing regional destabilisation. A wider war carries significant economic implications, threatening to disrupt critical global trade routes, impact energy security, and trigger severe humanitarian and economic consequences across West Asia.

The Israel Defense Forces (IDF) announced that Hamas’s Beit Hanoun battalion is no longer functioning as an operational military unit following sustained ground operations in northern Gaza, Israel National News said in a report. A commander from the IDF’s Givati Brigade stated that the Israeli military dealt a “significant blow” to the battalion over the course of the last month. This development is part of Israel’s stated objective to dismantle Hamas’s military capabilities in the Gaza Strip.

Prominent Palestinian footballer Suleiman al-Obeid, known as the ‘Pele of Palestinian football’, has been killed in Gaza, Al Jazeera says in a report. Al-Obeid was reportedly killed while attempting to secure humanitarian aid amid the ongoing Israel-Hamas war and the severe humanitarian crisis in the region. His death highlights the dangerous conditions civilians face when seeking essential supplies due to the conflict and blockade.

In a significant diplomatic communication, Syrian Foreign Minister Faisal Mekdad has conveyed to a British official that the government is receptive to any initiative that could lead to regional stability, Asharq Al-Awsat says in a report. This overture to a key Western nation, which has historically maintained a critical stance and sanctions against the Assad regime, signals a potential pragmatic shift. From a financial perspective, this engagement could be an initial step towards seeking an alleviation of crippling economic sanctions, such as the US Caesar Act, which have hampered Syria’s reconstruction and recovery. Any successful dialogue could eventually unlock pathways for international aid and foreign investment, significantly impacting the economic landscape of both Syria and the wider region by fostering stability conducive to trade and development.

Bangladesh is set to send female military trainers to Kuwait to assist in the training of Kuwaiti women soldiers, according to a report in Asharq Al-Awsat. The initiative supports Kuwait’s ongoing policy to modernise its armed forces and further integrate women into various military roles, a process that has been expanding since 2021. This bilateral agreement underscores a growing security partnership between the two countries and reflects a broader trend of Gulf states diversifying their military training partners.

July 2025 was the third-hottest month on record globally and set a new all-time heat record for Türkiye, according to a report in Asharq Al-Awsat. The extreme heat is intensifying regional issues in West Asia, including water scarcity in shared river basins and threats to food security from potential crop failures. The findings highlight the climate vulnerability of the region, which faces severe desertification and extreme heat.

Nobel Peace Prize laureate Narges Mohammadi has stated from prison that Iran’s official position on its peaceful nuclear programme is ‘mere political rhetoric’, a declaration that increases geopolitical tensions in West Asia, as per a report in Asharq Al-Awsat. The statement from the prominent human rights activist undermines Tehran’s international credibility and lends support to arguments for maintaining stringent economic sanctions. For financial markets, this development heightens risk premiums, particularly in the energy sector, as increased instability could threaten oil supply chains. It also diminishes prospects for a revival of the JCPOA nuclear deal, further delaying the potential reopening of the Iranian market to international trade and investment.

An arson attack on an Israeli soldier’s vehicle near the Givat Tzur Harel outpost highlights the persistent security challenges in the West Bank, Israel National News says in a report. While a minor event, the incident, reportedly carried out by youths opposing de-escalation, underscores the fragility of regional stability. From a market perspective, such flare-ups contribute to the geopolitical risk premium for Israeli assets and can deter foreign investment and tourism. Continued instability necessitates higher Israeli defence expenditure, impacting the national budget, whilst simultaneously hampering the Palestinian economy. The attack demonstrates the significant hurdles facing diplomatic efforts aimed at de-escalation, a prerequisite for sustained economic confidence in the region.

Israel’s Health Ministry has issued a public health warning after the polio virus was detected in Jerusalem and central Israel, as per a report in Israel National News. The ministry stated that the virus appears to be spreading and is urging the public to complete the full vaccination protocol to prevent infection. The detection of the virus across multiple geographic areas suggests potential community transmission, a significant development for a disease previously considered eradicated in the country.

A protest by a key Haredi politician against the military conscription of religious students is intensifying a political crisis that threatens the stability of Prime Minister Netanyahu’s coalition government, creating significant uncertainty for Israeli markets, as per a report in Israel National News. Member of Knesset Meir Porush’s hunger strike highlights the deep divisions over the issue, which could lead to the government’s collapse if a compromise is not reached. Such political instability poses a direct risk to investor confidence, potentially impacting the shekel and the Tel Aviv Stock Exchange. The dispute also has long-term economic implications tied to Israel’s labour market, fiscal policy regarding subsidies for religious institutions, and the state’s ability to address critical manpower shortages for its military during an ongoing conflict.

The United States has put forward a new proposal aimed at de-escalating tensions on the Israel-Lebanon border, which was delivered to Beirut by a US envoy, as per a report in Haaretz. The plan outlines a four-stage process to be completed within 120 days, commencing with a cease-fire. Key components of the proposal include the full disarmament of Hezbollah and a corresponding withdrawal of Israeli forces from the border area. This diplomatic initiative comes amid ongoing cross-border hostilities that have been a feature since the start of the war in Gaza.

A suspected foreign influence campaign is using accounts on the social media platform X to artificially amplify the messages of an Israeli minister, according to a report in Haaretz. The activity involves a network of accounts boosting the minister’s content, which has raised concerns about a covert effort by foreign actors to manipulate public discourse. An investigation into the coordinated activity is reportedly underway to determine the origin and intent behind the campaign.

The Israel Defense Forces (IDF) are intensifying military operations in the Gaza Strip, with a focus on dismantling tunnels and what it describes as terror infrastructure, Israel National News said in a report. The operations are concentrated in the urban areas of Khan Yunis, Jabaliya, and Tuffah. The stated military goal of the continued action is to weaken Hamas and other armed factions operating in the region.

Families of Israeli hostages have launched a protest flotilla towards Gaza, calling for an end to the ‘endless war’ and demanding the return of their relatives, according to a report in Haaretz. The protest is timed to exert pressure on Prime Minister Benjamin Netanyahu’s government ahead of a security cabinet meeting scheduled for later today at his office. The demonstration reflects growing domestic pressure and public frustration over the protracted conflict and the lack of progress in securing a hostage release deal.