Multinational Maritime Coalition: But Where Is the Real Problem?

The latest meeting of the Multinational Maritime Defense Coalition raises a basic question: what exactly is this coalition being created to achieve? The question becomes even more pertinent when representatives of 41 countries, including 154 naval commanders, planners, ambassadors and European Union officials, gather in Jeddah to prepare for operational deployment. The coalition now has 28 liaison officers and has reached Initial Operational Capability.

Its declared objective is straightforward - protect freedom of navigation, maritime routes and strategic straits through a coordinated multinational defensive framework.

But here lies the paradox. If freedom of navigation is the objective, why is the Strait of Hormuz not at the center of the discussion?

I do not subscribe to the narrative that Iran alone is responsible for the disruption of navigation through Hormuz. The present crisis followed the US-Israeli attack on Iran on February 28, while negotiations were reportedly underway. Since then, a cycle of military action and retaliation has continued, with attacks on strategic assets and shipping followed by Iranian responses.

The consequences extend well beyond Iran. The disruption is also hurting the oil-producing Arab economies of the Gulf, whose exports depend heavily on secure maritime routes. Hundreds of ships and thousands of seafarers have reportedly remained unable to sail safely through the strait for months.

This creates an uncomfortable contradiction. A coalition established in the name of maritime freedom cannot effectively address the problem by treating only one side of the conflict as responsible.

The immediate requirement is therefore not another layer of military coordination. It is de-escalation and restoration of freedom of navigation.

The United States should remove restrictions affecting Iranian shipping and work with all relevant parties to restore safe and unhindered passage through the Strait of Hormuz, including for Iranian-owned and Iranian-operated vessels.

Freedom of navigation cannot be selective. If it is genuinely a shared international interest, it must apply to everyone—or the principle itself is undermined.

PSX benchmark index closes almost flat

Pakistan Stock Exchange (PSX) remained volatile during the week ended on September 18, 2026. The benchmark Index gained 372 points or 0.22%WoW during the week to close at 170,885 points.

Yemeni Houthi attacks on Saudi Arabia's East-West Pipeline forced the closure of a key export route, pushing Brent crude to a 4-month high of US$109.7/ bbl.

Oil prices eased during the final two days, with the index recovering as fading concerns over immediate Saudi supply disruptions ultimately outweighed fears of a broader Middle East conflict.

The GoP reintroduced austerity measures in an effort to conserve fuel.

Pakistan’s central bank kept the policy rate unchanged at 11.50% on Monday, in line with broad market consensus.

Current account deficit narrowed sharply by 70%YoY to US$98 million in August 2026.

Foreign exchange reserves held by SBP forex hit a record high of US$21.4 billion, pushing the country's import cover past three months for the first time in 5-Years.

Yields on 3 and 6 month T-bills declined to 11.38% and 11.70%, respectively, in the latest auction.

FDI increased by 80%YoY to US$316 million during August 2026.

Auto industry sales increased by 11%YoY to 17,485 units in August 2026, while IT exports rose 17%YoY to US$394 million.

Other major news flow during the week included: 1) GoP presents IMF plan to retire PKR3.6 trillion gas-sector circular debt, 2) Pakistan eyes to seek an expansion of its 30 billions yuan swap line with China, 3) Pakistan cotton arrivals rose by 19%YoY to 2.4 million bales as of September this year, 4) Auto financing in August 2026 reached record high of PKR393 billion, and 5) GoP approves PKR75 billion subsidy for fuel relief scheme.

Leading sectors were: Synthetic and Rayon, Leasing Companies, and Real Estate Investment Trust.

while the lagged included: Textile Weaving, Paper & Board, and Leathers & Tanneries.

Major buyers were Individuals (US$11.0 million) and Banks (US$2.6 million). Major selling was recorded by Mutual Funds (US$12.7 million) and Foreigners (US$3.4 million).

Top performing scrips of the week were: PSEL, IBFL, and CPHL, while the laggards included: GHNI, GAL, and NBP.

AKD Securities expects the market to improve on the back of strengthening economic indicators, with the upcoming IMF review in the next week to remain a key near-term catalyst.

A potential US-Iran deal could moderate international oil prices from current elevated levels, the market continues to trade at attractive valuations.

The brokerage house forecasts the Index to reach 263,800 by end December 2026.

Top picks of the brokerage house include: OGDC, PPL, UBL, MEBL, HBL, FFC, ENGROH, PSO, LUCK, FCCL, INDU, ILP and SYS.

Hormuz Shuttle Tankers: An Evolving Trend Amid the US-Israel war on Iran

According to a report by Seatrade Maritime News, the disruption of shipping through the Strait of Hormuz is creating a new pattern in the regional oil trade - shuttle tankers are increasingly moving crude from the Persian Gulf to the Gulf of Oman, where cargoes are transferred ship-to-ship (STS) for onward delivery.

The trend is illustrated by the Hong Kong-flagged VLCC Cospearl Lake, which recently reached Dalian, China, carrying about two million barrels of crude loaded through an STS transfer in the Gulf of Oman rather than directly from a Persian Gulf terminal. Such operations allow exporters and buyers to keep oil moving while reducing exposure to the increasingly risky and costly Hormuz transit.

The United Arab Emirates (UAE) has emerged as a key player in this shuttle trade. Regional exporters are using tankers to transport crude through the Strait and transfer it to waiting vessels outside the Gulf. This complements conventional voyages by tankers that continue directly to their destinations.

The Mombasa B provides an important example. The VLCC, chartered by UAE's ADNOC from Sinokor Maritime, entered the Persian Gulf in April and subsequently began shuttling between Gulf loading terminals and the Gulf of Oman. Since June, many of its voyages through Hormuz have been conducted as “dark transits,” with AIS signals switched off.

The risks, however, remain substantial. On July 13, Iranian forces targeted the Mombasa B with cruise missiles while it was transiting the waterway. One Indian crew member was killed and eight others injured. Although the tanker suffered material damage, it remained operational and subsequently resumed Hormuz crossings. The vessel has since been placed on Iran's list of “non-compliant” ships.

The UAE is nevertheless expanding its capacity. In August, ADNOC Logistics & Services announced the acquisition of six additional VLCCs. Other regional exporters, including Kuwait, are also using tankers in shuttle operations. Some ADNOC vessels have reportedly carried Iraqi Basrah crude, indicating that the system is evolving into a wider regional network rather than serving only UAE exports.

Kpler data shows that Persian Gulf crude and condensate loadings reached about 5.8 million barrels per day in August, including Gulf of Oman STS transfers, and have risen toward 8 million bpd in September. Iraq has also reportedly offered buyers the option of collecting crude through STS transfers outside Hormuz.

Yet shuttle tankers remain a wartime workaround rather than a replacement for normal trade routes. They require additional vessels, increase costs and operational complexity, and remain vulnerable to attack. With Iranian oil exports reportedly falling sharply and tensions continuing around the Omani corridor, Tehran may have greater incentive to disrupt these alternative supply chains.

The emerging shuttle trade therefore demonstrates the adaptability of the global oil market—but also highlights how deeply the Iran war has altered the economics, logistics and security of energy transportation through the Gulf.

Will Another Media Narrative Push the Muslim World Towards War?

The Western media, which played a major role in building the narrative that Iraq possessed weapons of mass destruction, appears to be following a familiar script in the Middle East. This time, Iran is being projected not merely as an adversary of the United States and Israel, but increasingly as a threat to the Kingdom of Saudi Arabia.

Since the US and Israel jointly attacked Iran on February 28, the narrative surrounding Iran has intensified. For decades, Western policymakers and media outlets have repeatedly presented Iran as a greater threat to the region than Israel. The question is whether this narrative is now being expanded to create a direct confrontation between Iran and the Arab Gulf states.

There is another important distinction that deserves attention. The United States maintains military facilities and assets in several GCC countries. When Iran retaliates against American military targets, reports can easily create the impression that Iran is attacking the territory of the Gulf state hosting those facilities. The distinction between an attack on a US military asset and an attack on the host country should not be lost.

When attempts to pressure or destabilize Iran failed to produce the expected outcome, the familiar sectarian card also appeared. Reports involving the alleged killing of a Sunni cleric were circulated with the potential to inflame Shia-Sunni tensions, although subsequent developments did not substantiate the dramatic interpretation initially suggested.

Now comes an even more sensitive issue, reports that the Houthis targeted Mecca.

Saudi authorities say a Houthi drone was intercepted south of Mecca, while the Houthis deny targeting the holy city. Such a serious allegation demands independent verification, not sensational headlines.

The danger is obvious. Mecca and Medina are not Saudi-Iranian, Shia-Sunni or Arab-Persian issues. They belong to the entire Muslim Ummah.

The Iraq WMD narrative demonstrated how devastating a questionable intelligence narrative can become when it is converted into political justification for war. The consequences were measured not merely in headlines but in human lives and regional instability.

Muslims should therefore reject attempts to exploit the sanctity of the holy cities for geopolitical or sectarian purposes. If the Houthis actually targeted Mecca or Medina, the evidence should be established transparently. If they did not, the allegation must not be allowed to become the spark for a much larger conflict.

The Muslim world cannot afford another war manufactured through narratives, rumours and sectarian emotions. The first responsibility should be to verify—not to mobilize.

The 2026 US Primaries: Politics Full of Surprises

The 2026 US primary season has delivered an unusual series of surprises, exposing growing pressures within both the Democratic and Republican parties ahead of November’s congressional elections.

On the Democratic side, progressive and democratic-socialist candidates made significant gains by defeating several established lawmakers. Their victories reflected the strength of anti-establishment sentiment among sections of the Democratic electorate and demonstrated that incumbency is no longer an assured advantage.

Republicans, meanwhile, continued to feel the influence of President Donald Trump. His decision to endorse Ken Paxton rather than Senator John Cornyn in the Texas Senate runoff underlined his continuing role in Republican politics. Trump also backed successful primary challenges against several Republican critics, including Cornyn, Representative Thomas Massie and Senator Bill Cassidy.

Trump's influence was not absolute. He suffered notable setbacks in several gubernatorial contests, while the broader primary results showed that his endorsements do not automatically determine outcomes.

The season also raised questions about political polling. Candidates expected to dominate races in Michigan and Wisconsin encountered much stronger competition than anticipated. The revelation that fake polls had circulated in two major contests further damaged confidence in an already scrutinized industry.

Another unexpected development came from Pennsylvania Senator John Fetterman, whose appearance at a Republican convention and praise for Republican Senator Dave McCormick highlighted the ideological and political tensions within the Democratic Party.

In Maine, Graham Platner's rapidly rising campaign collapsed following allegations of sexual misconduct and scrutiny of controversial past posts, forcing Democrats to select a replacement candidate.

Meanwhile, a Supreme Court ruling affecting the Voting Rights Act triggered new congressional redistricting in several Southern states, potentially altering the balance of House seats.

With Election Day only weeks away, the primaries have revealed a fluid American political landscape in which incumbents, party establishments, polling expectations and even traditional party loyalties face increasing pressure.

Modi and Xi agree to look beyond differences

All eyes were on India last weekend as Prime Minister Narendra Modi played host for the annual BRICS summit. The event marked Chinese President Xi Jinping's first visit to India since a clash in a disputed border region in 2020 left 20 Indian and four Chinese soldiers dead. The 11-member bloc makes up about 40% of the global economy, but its two heavyweights India and China have often veered between hostility and cooperation.

On the sidelines of the summit, Xi and Modi once again reaffirmed the importance of long-term cooperation, especially with world trade being reshaped by volatile US tariff policies. But you wouldn't be blamed for skepticism here, analysts told Nikkei Asia.

India's trade deficit with China has ballooned over the years, and its dependence on imports from its neighbor in sectors ranging from electronics to electric vehicles remains stark. But for Chinese companies seeking new growth markets amid mounting domestic overcapacity, India's large and growing market is unmatched.

India wants to move up global value chains, but China's interests are best served if India's import dependence remains where it is. China's restrictions on equipment exports, tech transfers and even business visas have affected Indian manufacturers as the country pushes for self-reliance in critical new-age sectors.

These thorny issues will remain the subject of debate, especially at India's Semicon event beginning on Thursday. This year's three-day conference comes only weeks after India initiated its second semiconductor mission, which places a far bigger emphasis on chip design. In the first mission, 12 projects were approved, including India's first fab, being set up by the Tata group.

India's semiconductor drive will be a crucial test of its ability to build a critical ecosystem in China's shadow its - import dependence is acute in chips and electronic components. As India vies for data center investments, higher localization of manufacturing in chips, components and power systems will be crucial for the biggest ecosystem benefits.

Why Is the President Outside the Stock-Trading Net?

A Bloomberg analysis has raised an intriguing question about the relationship between political power and financial markets in Washington. President Donald Trump and his financial managers reportedly executed nearly 28,700 securities transactions during the 17 months following his second inauguration through June 2026—more than the roughly 22,200 transactions reported collectively by members of Congress over the same period.

The scale is remarkable. Trump’s transactions reportedly involved accounts worth more than US$858 million and covered individual stocks, bonds and cryptocurrencies. This represents a notable shift from his first term, when his assets were primarily associated with real estate.

The volume of trading, does not by itself establish wrongdoing. Trump’s representatives and the Trump Organization have maintained that the accounts are managed by independent third parties and computer-driven models, and that neither Trump nor his family receives advance notice of or exercises control over individual transactions.

Yet the issue raises a broader question of public policy. The United States already has rules against government officials using non-public information obtained through their positions for financial gain. The 2012 Stock Act clarified that insider-trading prohibitions apply to Members of Congress and other government officials. Congressional records also show that lawmakers have repeatedly proposed going further by restricting or banning securities trading by elected officials.

Here the question becomes particularly relevant, if Members of Congress are considered sufficiently exposed to potential conflicts of interest to justify restrictions on their personal investments, why should comparable safeguards not apply to the President?

Not all proposed legislation treats the President differently. Indeed, the proposed Ethics Act would cover Members of Congress, the President and Vice President, while other measures have focused specifically on lawmakers.

That variation itself deserves scrutiny. The President exercises enormous influence over policies involving taxation, tariffs, regulation, energy, defence, trade and international relations—areas capable of affecting the value of financial assets. Even when investments are managed independently, the question of public confidence remains.

The debate, should not be reduced to whether any particular Trump transaction was lawful or unlawful. The more fundamental issue is whether America's conflict-of-interest framework should apply consistently to all elected officials.

If Congress believes that stock trading can create either an actual conflict or the appearance of one, the same principle merits consideration at the highest level of government.

After all, public trust should not depend on whether an elected official occupies a seat on Capitol Hill—or sits in the Oval Office.