What after Haniyeh killing?

The targeting of two senior militant leaders in two Middle Eastern capitals within hours of each other — with each strike blamed on Israel — risks rocking the region at a critical moment.

The strikes come as international mediators are working to bring Israel and Hamas to agree to a cease-fire that would wind down the devastating war in Gaza and free hostages. Intense diplomatic efforts are also underway to ease tensions between Israel and Hezbollah after months of cross-border fighting.

The assassination of Hamas’ top leader Ismail Haniyeh in Tehran and the strike against senior Hezbollah commander Fouad Shukur in Beirut could upend those painstaking attempts to defuse a Middle East powder keg. Iran has also threatened to respond after the attack on its territory, which could drag the region into all-out war.

Here’s a look at the potential fallout from the strikes:

Gaza cease-fire negotiations

Haniyeh’s assassination could prompt Hamas to pull out of cease-fire negotiations being mediated by the United States, Egypt and Qatar, though it has yet to comment on the issue.

But given Haniyeh’s role, a senior Egyptian official with direct knowledge of the negotiations said the killing will highly likely have an impact, calling it “a reckless act.”

“Haniyeh was the main link with (Hamas) leaders inside Gaza, and with other Palestinian factions,” said the official, who met with the Hamas leader multiple times in the talks. “He was the one we were meeting face-to-face and talking about the cease-fire.”

Qatari Prime Minister Mohammed Bin Abdul Rahman al-Thani condemned the attacks.

“How can mediation succeed when one party assassinates the negotiator on the other side?” he wrote on the social media platform X.

US Secretary of State Antony Blinken said he didn’t want to speculate on the effect, but the events renewed the “imperative of getting the cease-fire,” which he said they are working toward on a daily basis

Hezbollah has said that it will halt its fire on Israel if a Gaza cease-fire is reached.

Israeli Prime Minister Benjamin Netanyahu has argued that military pressure will prompt Hamas to agree to a deal, but previous killings of senior figures have not appeared to increase the chances for an agreement.

People in Gaza expressed sadness and shock over Haniyeh’s killing and worried that a cease-fire deal was slipping away.

“By assassinating Haniyeh, they are destroying everything,” said Nour Abu Salam, a displaced Palestinian. “They don’t want peace. They don’t want a deal.”

The increasingly desperate families of hostages held in Gaza urged for their loved ones to be released.

“I’m not interested in this assassination or that assassination, I’m interested in the return of my son and the rest of the hostages, safe and sound, home,” said Dani Miran, whose son Omri, 46, was kidnapped from Kibbutz Nahal Oz on October 07, 2023.

Risk of broader war

The strikes also raised alarm among some diplomats working to defuse tensions in the region.

“The events in Tehran and Beirut push the entire Middle East to a devastating regional war,” said one Western diplomat.

The diplomat — whose government has engaged in concerted diplomacy to prevent an all-out war between Israel and Hezbollah, but is not directly involved in cease-fire or hostage negotiations — called the killing of Haniyeh a “serious development” that has “almost killed” a possible cease-fire in Gaza, given its timing and location.

She said that Haniyeh’s killing inside Tehran while attending the inauguration of an Iranian president “will force Tehran to respond.”

The assassination in Tehran is not the first time that Israel has been blamed for a targeted attack on Iranian soil, but it’s one of the most brazen, said Menachem Merhavy, an expert on Iran from the Hebrew University of Jerusalem.

Israel hasn’t taken responsibility for the strike, though it vowed to kill all of Hamas’ leaders over the Oct. 7 attacks. Merhavy thinks it’s unlikely that Iran will respond directly to Israel, such as with the barrage of 300 rockets in April after a suspected Israeli strike in Syria that killed two Iranian generals in an Iranian consular building.

He believes Iran is more likely to send its response via Hezbollah.

“Iran knows that its capability of hurting Israel is much more significant from Lebanon,” said Merhavy.

The location of Haniyeh’s assassination was just as important as the strike itself, he said.

“The message was to Iran and the proxies, if you thought in Tehran you’re protected, we can reach you there as well,” said Merhavy. “Reconsider your relations with Tehran, because they cannot protect you on its own soil.”

Finding the replacement

Although Haniyeh’s name has more international recognition, the strike on Hezbollah commander Fouad Shukur, if successful, is “much more important from a functional point of view,” said Michael Milshtein, an Israeli analyst of Palestinian affairs at Tel Aviv University and a former military intelligence officer.

He said Shukur was involved in the day-to-day management of Hezbollah’s strikes on Israel, including, according to Israel, the rocket attack on Majdal Shams that killed 12 youths on Saturday. Israel said its hit in Beirut on Tuesday killed him but Hezbollah has not confirmed that.

“If Hezbollah is considering how to act or to respond, one of the main question marks is how they’re going to manage a war without Shukur,” said Milshtein.

Others said Shukur, if he is in fact killed, will easily be replaced.

“Hezbollah has thick layers of commanders and leaders, and the killing of 1 or 10 or 500 will not change the equation,” said Fawaz Gerges, of the London School of Economics.

Gerges said Haniyeh is a much more symbolic leader and is far removed from the day-to-day operations in Gaza.

“Even though the assassination of Haniyeh is a painful blow for Hamas, it will make no difference in the military confrontation between Israel and Hamas,” and Gerges.

He noted that Israel has a long history of assassinating leaders of Palestinian groups, but those strikes have little impact as the leaders are quickly replaced.

Courtesy: Associated Press

 

 

Iran: Pezeshkian sworn in as President

Masoud Pezeshkian was sworn in as Iran's new president on Tuesday, after winning an election earlier this month by promising to improve ties with the world and ease restrictions on social freedoms at home.

"We will pursue constructive and effective interaction with the world based on dignity, wisdom, and expediency," Pezeshkian told a parliament session attended by foreign dignitaries and broadcast live on state television.

According to Reuters, his victory has lifted hopes of a thaw in Iran's antagonistic relations with the West that might create openings for defusing its nuclear standoff with world powers.

Pezeshkian takes office at a time of escalating Middle East tensions over Israel's conflict with Hamas in Gaza and cross-border fighting with Hezbollah in Lebanon.

Iran, which backs the groups which describe themselves as the "Axis of Resistance" to Israel and US influence in the Middle East, has accused the United States of supporting what it calls Israeli crimes in Gaza.

"Those who supply weapons that kill children cannot teach Muslims about humanity," Pezeshkian said to chants of "Death to America," and "Death to Israel".

Leaders of Iran's Palestinian allies Hamas and the Islamic Jihad as well as senior representatives of Yemen's Tehran-backed Houthi movement and Lebanon's Hezbollah attended the ceremony.

Pezeshkian, who is expected to name his cabinet within two weeks, replaces Ebrahim Raisi, who was killed in a helicopter crash in May.

As the ultimate authority in Iran, Supreme Leader Ayatollah Ali Khamenei has the final say in all state matters, including foreign and nuclear policy.

He must also approve Pezeshkian's selections for key cabinet posts, such as the foreign, oil and intelligence ministers.

As well as mounting pressure from the West over Tehran's fast-advancing nuclear program, Pezeshkian faces the huge task of breaking Iran free of the crippling US sanctions, re-imposed after Washington ditched Iran's 2015 nuclear deal with major powers.

Indirect talks between Tehran and Washington to salvage the nuclear accord with six major powers have stalled since 2022, with both sides accusing the other of unreasonable demands.

"My government will never succumb to bullying and pressure ... Pressure and sanctions do not work ... and the Iranian people should be spoken to with respect," said Pezeshkian.

 

 

 

 

 

 

 

 

Russian crude drives dark fleet demand

Dark fleet tankers and risky Suez transits are having little impact on India’s soaring imports of Russian crude, now running at 20 times the volume shipped prior to the invasion of Ukraine.

Analysis by New York broker, Poten & Partners, has revealed that Indian imports of heavily sanctioned Russian crude have increased to almost 1.8 million barrels a day (bpd), up from just 88,000 bpd prior to the invasion in February 2022.

At that time, Russia ranked ninth on India’s list of oil suppliers, with Iraq, Saudi Arabia and the UAE supplying about 60% of the country’s crude. The three Middle East nations were followed by the US and Nigeria.

Prior to the invasion, Russian crude had not been attractive to Indian refiners because of logistical constraints. None of Russia’s main export ports in the Baltic, the Black Sea or the Far East can load VLCCs, Poten pointed out, so Russian cargoes were shipped aboard Aframax and Suezmax tankers.  

However, the picture changed dramatically following the 2022 invasion when western nations imposed sanctions on Russian crude. This was largely driven by price. Until the invasion, ‘Dated Brent’ and Urals crude had traded broadly in parity but, following sanctions, ‘official’ Urals prices were an average of US$10-20 lower. Since deals involving Russian crude are shrouded in secrecy, Poten’s analysis has revealed that actual discounts could be much higher, possibly as much as US$40 a barrel.  

Much of the new Soviet crude was bought based on spot prices and arranged by Russian oil traders, many of them in Dubai, who charge ‘significant commissions’ for their services. But over recent months, the discount of Urals to Brent crude has narrowed, making the crude less attractive.

Meanwhile, the tanker trade from Russia to India has become more challenging, Poten said. Sanctions now restrict the use of Western shipping services including owners, brokers, and insurers when the Soviet crude price exceeds the ‘price cap’ of US$60 per barrel. This has forced Indian importers to rely on tankers in the so-called dark fleet – ships that may be old, poorly maintained, with dodgy crews and questionable insurance cover.

The dangers of the dark fleet have been highlighted by the recent collision between the Sao Tome and Principe VLCC Ceres I and the Singapore-registered product tanker Hafnia Nile, where the VLCC later attempted to flee the scene of the accident.

The US and EU are trying to ‘tighten the noose’ around these sanctions-busting shipowners. The availability of suitable ships could soon become a problem, possibly even limiting Russia’s export possibilities. At the same time, conflict in the Middle East is making this worse.

The dark fleet tankers on the route from Russia to India often take the shortcut through Suez, Poten said, even though the Houthis are increasing their strikes against ships in the Red Sea and Bab Al-Mandeb Straits. But the voyage round the Cape takes far longer and is much more expensive.

Despite these setbacks, Poten reports that Indian refiners are now in dialogue with Soviet suppliers on term deals, rather than spot contracts. This could reduce transaction costs by cutting out the middlemen.

“It would also suggest that the boost in ton-mile demand that has helped trigger the sustained increase in tanker rates may be here to stay,” Poten concluded.  

Courtesy: Seatrade Maritime News

 

Wishes are horses and beggars are riders

Reportedly, Pakistan has sought the re-profiling of more than US$27 billion in debt and liabilities with friendly nations — China, Saudi Arabia and the UAE — to secure a 37-month IMF bailout package and ease energy sector foreign exchange outflows and consumer tariffs.

Finance Minister Muhammad Aurangzeb on Sunday said Islamabad had already asked the friendly bilateral trio of lenders to roll over its more than US$12 billion annual debt portfolio by three to five years to secure the IMF board’s approval for a US$7 billion economic bailout.

This is on top of Islamabad’s request to Beijing to convert imported coal-based projects to local coal and re-profile more than US$15 billion in energy sector liabilities to create fiscal space amid difficulties in timely repayments.

Pakistan has a peculiar financial arran­gement with these three countries in the shape of commercial loans and SAFE deposits that are rolled over every year and form major part of the IMF program in terms of external financing needs.

Pakistan has now requested the maturity period of these loans — US$5 billion from China, US$4 billion from Saudi Arabia, and US$3 billion from the UAE — to be extended to at least three years, offering greater predictability under the IMF program.

Speaking at a news conference after returning from China, Finance Minister said the Chinese side acknowledged Pakistan’s foreign exchange difficulties and wanted to help in new business ventures and the re-profiling of energy sector payments besides playing its role in supporting Pakistan’s case at the IMF board as one of the major stakeholders.

He said the process of debt and equity rescheduling had been started and would now go to the working groups with relevant financial institutions and sponsors of Chinese projects for which Pakistan was hiring local Chinese consultants.

“Between now and the IMF board meeting we have to ensure confirmation of external financing” from friendly bilateral partners, the minister said. However, he explained that the Chinese energy sector debt re-profiling had nothing to do with the IMF program as other prior actions had been completed and structural benchmarks were under implementation.

Minister said he was in contact with the Chinese, Saudi and UAE finance ministers for extension in debt rollover for three years and they had assured their support that would place Pakistan at a very comfortable position in terms of external financing gap.

“I can assure you we are at a very good place on external financing for the next three years, including year-one, year-two and year-three,” he said.

Without going into details, he said the IMF had worked out a financing needs assessment for three years that also included its own US$7 billion Extended Fund Faci­lity. After rollovers from friendly countries, the remaining external financing gap would become very manageable, he said.

Responding to a question, the minister said Pakistan was not seeking any incremental financing from friendly countries. “The only incremental thing is an extension in maturity period for three years instead of yearly rollovers,” he said.

Minister said that the issue of energy sector repayments was initially taken up by Prime Minister Shehbaz Sharif with President Xi Jinping of Chian during his visit to Beijing and followed it up with formal letters to Prime Minister Li Keqiang.

As part of the process, Finance Minister along with Power Minister held meetings with Chin­ese finance and energy ministers and the governor of the Chinese central bank to understand the context of Pakistan’s ability to pay, economic stability and relief in energy tariffs.

He said the two sides discussed conversions of Chinese power projects to local coal and how to take their technical, logistical and financial parameters forward.

Secondly, financial re-profiling would also need to be discussed with banks and project sponsors one by one. “They have recognized this and the process would now move forward on that basis,” Minister said.

He said the re-profiling of CPEC debt was also discussed the governor of Chinese central bank and “we would need to go for project by project given the CPEC structure”.

“Very positive discussions have taken place from my perspective,” he said, adding the debt of Chinese independent power producers (IPPs) was manageable as their legal payments were being made, but the issue pertained to return on equity to project sponsors mainly because of foreign exchange which required to be rescheduled to create fiscal space.

Minister, however, clarified that Pakistan was seeking the re-profiling of payments and not “haircuts” — debt waiver or interest rate cuts.

He stressed the importance of long-term structural solutions for economic challenges. He acknowledged the difficulties faced by all segments of society due to high interest rates, energy prices, currency devaluation and increased tax burdens but emphasized the necessity of tough measures given the loss of fiscal space.

“We have no more choice of doing what we have been doing in the past for short-term relief and objectives.”

Responding to a question, the finance minister said Pakistan has moved forward with both the United States and China, aiming to advance the phase two of CPEC under which Chinese business were to relocate to Pakistan, while the US was Pakistan’s largest trading partner and the European Union had provided the GSP Plus status to help prop up Islamabad’s exports.

He said that during his visit to China, he also engaged with his counterpart and the central bank chief to explore opportunities in the Chinese capital market — the second largest in the world — through Panda bonds. He said Pakistan would register for the US$1 billion equivalent of Panda bonds but tap around the equivalent of US$150 million to US$200 million.

Minister said industrialists should also acknowledge that Paki­stan’s economy was such that it immediately ran into a foreign exchange crisis as it tried faster economic growth, and hence, it would be prudent not to fall again into the import restriction regime that could be more painful.

He hoped the stability in foreign exchange and macroeconomic indicators would soon improve Paki­stan’s credit rating and gradually move towards export-led growth, FDI creating exports and return to the international capital markets.

Past efforts for public sector rightsizing did not bear fruit because of large portfolios, the minister said, adding that he was pushing for “bite-size” restructuring by taking only five shortlisted ministries — Kashmir Affairs and Gilgit-Baltistan, Safron, Industries and Production, IT and Telecom, and Health — in the first instance while protecting the rights of workers and asset values.

 

 

Pakistan: SBP reduces policy rate by 100bps

At its meeting today, the Monetary Policy Committee (MPC) of State Bank of Pakistan (SBP) decided to cut the policy rate by 100 basis points to 19.5%, effective from July 30, 2024.

The Committee observed that the June 2024 inflation was slightly better than anticipated. The Committee also assessed that the inflationary impact of the FY25 budgetary measures was broadly in line with earlier expectations.

The external account has continued to improve, as reflected by the build-up in foreign exchange reserves held by SBP despite substantial repayments of debt and other obligations.

Considering these developments – along with significantly positive real interest rate – the Committee viewed that there was a room to further reduce the policy rate in a calibrated manner to support economic activity, while keeping inflationary pressures in check.

The Committee noted the following key developments since its last meeting:

First, the current account deficit narrowed sharply in FY24 and forex reserves of SBP reserves improved significantly from US$4.4 billion at end June 2023 to above US$9.0 billion.

Second, the country reached a staff level agreement with the IMF for a 37-month EFF program of about US$7.0 billion.

Third, sentiment surveys conducted in July showed a worsening in inflation expectations and confidence of both consumers and businesses.

Fourth, international oil prices have remained volatile in recent weeks, whereas prices of metals and food items have eased.

Lastly, with the ease in inflationary pressures and labour market conditions, central banks in advanced economies have also started to cut their policy rates.

Taking stock of these developments, the Committee assessed that, despite today’s decision, the monetary policy stance remains adequately tight to guide inflation towards the medium-term target of 5 to 7 percent. This assessment is also contingent on achieving the targeted fiscal consolidation, timely realization of planned external inflows and addressing underlying weaknesses in the economy through structural reforms.

Real Sector

Latest high-frequency indicators continue to reflect moderate economic activity. Auto and POL (excluding FO) sales and fertilizer offtake increased on MoM basis in June.

Large-scale manufacturing also recorded a sharp improvement in May 2024, mainly driven by the apparel sector.

The growth in agriculture sector, after showing a strong performance in FY24, is expected to slow down in this fiscal year.

Latest satellite images and input conditions for Kharif crops also support this assessment. However, activity in the industry and services sectors is expected to recover, supported by relatively lower interest rates and higher budgeted development spending.

Based on this, the MPC assessed FY25 real GDP growth in the range of 2.5 to 3.5 percent as compared to 2.4 percent recorded last year.

External Sector

After recording surpluses for three consecutive months, the current account posted a deficit in May and June, in line with the MPC’s expectation. These deficits were largely due to higher dividend and profit payments and a seasonal increase in imports, which more than offset a significant increase in exports and workers’ remittances.

Cumulatively, the current account deficit in FY24 narrowed significantly to 0.2% of GDP from 1.0% in the preceding year. This, along with the revival of financial inflows, helped build the SBP’s FX reserves. Looking ahead, the MPC expects a modest increase in imports, in line with the growth outlook.

At the same time, the continued robust growth in workers’ remittances, along with an increase in exports, is expected to contain the current account deficit in the range of 0 - 1.0 percent of GDP in FY25.

The Committee assessed that the expected financial inflows, including planned official flows under the IMF program, would help finance this current account deficit and further strengthen the FX buffers.

Fiscal Sector

The government’s revised estimates indicate improvement in fiscal balances during FY24, as the primary balance turned into a surplus and the overall deficit declined from last year. However, amidst a shortfall in budgeted external and non-bank financing, the government’s reliance on the domestic banking system increased significantly.

The Committee expressed concern on increasing reliance on banks for deficit financing, which has been squeezing borrowing space for the private sector. For FY25, the government has set the primary surplus target at 2.0% of GDP.

The MPC emphasized on achieving the envisaged fiscal consolidation and timely realization of planned external inflows to support overall macroeconomic stability, and build fiscal and external buffers for the country to respond to future economic shocks.

Money and Credit

The MPC noted that the trends and composition of monetary aggregates during FY24 remained consistent with the tight monetary policy stance. Broad money (M2) and reserve money grew by 16.0% and 2.6%, respectively, well below the growth in nominal GDP.

Almost the entire growth in M2 was led by bank deposits, while currency in circulation remained almost at last year’s level. As a result, the currency to deposit ratio improved, as it declined from 41.1% at end June 2023 to 33.6% at end June 2024. At the same time, the improvement in external account increased the contribution of net foreign assets in monetary expansion.

Meanwhile, the growth in net domestic assets of the banking system decelerated amidst subdued demand for private sector credit. The Committee viewed these developments as favorable for the inflation outlook.

Inflation Outlook

As expected, headline inflation rose to 12.6%YoY in June 2024 from 11.8% in May. This increase was primarily driven by higher electricity tariffs and Eid-related increase in prices, which were partly offset by the downward adjustments in domestic fuel prices.

Core inflation, meanwhile, has steadied around 14 percent over the past two months. The MPC assessed that while the inflationary impact of the FY25 budget is largely in line with expectations, the available information indicates that the full impact of these measures may now take some time to fully reflect in domestic prices.

At the same time, the Committee noted risks to the inflation outlook from fiscal slippages and ad-hoc decisions related to energy price adjustments.

On balance, after considering these trends – and accounting for the sufficiently tight monetary policy stance and ongoing fiscal consolidation – average inflation is expected to remain in the range of 11.5 to 13.5 percent in FY25, down significantly from 23.4 percent in FY24.

Hezbollah denies targeting Golan Heights

Hezbollah has categorically denied what it said were claims made by the enemy that it had targeted an area in the Israeli-occupied Golan Heights. A projectile landed on a soccer field in Majdal Shams on Saturday killed 12 people, including children. 

Majdal Shams is an Arabic-speaking village populated by around 25,000 residents from the Druze community who have a Muslim background. The Golan Heights is a territory that belongs to Syria. It was captured by the Israeli occupation forces in 1967.

Amid ongoing Hezbollah operations against Israeli military positions, in solidarity with Gaza, the Lebanese resistance informed the UN that the Golan Heights incident was the result of an Israeli interceptor hitting the soccer field. 

This is not the first time Israeli missile batteries and Iron Dome systems have missed their targets and hit Majdal Shams.

A similar incident occurred on July 10, when Tel Aviv was quick to blame Hezbollah. 

Assessments later showed technical failure with Israeli defense systems was behind the Majdal Shams incident on July 10, despite Tel Aviv quickly shifting the blame to Hezbollah. 

The attack on Saturday on the Druze community, who also enjoy a large presence in Lebanon, has again raised suspicions due to the timing, the nature of the civilian target, and the size of the explosion.

It is inconsistent with ten months of daily operations by Hezbollah that have pounded Israeli military sites, and on occasions, Israeli settlements, in retaliation for deadly Israeli attacks on Lebanese civilians. 

Hezbollah confirmed its complete lack of involvement in the incident, refuting all the “false claims” being spread. 

Issuing a statement Hezbollah said, “The Islamic Resistance in Lebanon categorically denies the claims made by some enemy media and various media platforms about targeting Majdal Shams. It confirms that the Islamic Resistance has no connection with the incident whatsoever and unequivocally denies all false claims in this regard.”

The residents of Majdal Shams, located a few kilometers from Lebanon, are aware that their town, under the rules of war, was within a zone of peace and security. 

Hezbollah is also aware of this and of its wide range of military targets.

Experts say that between the determination, sincerity and transparency of the Lebanese resistance and the criminal history of the Israeli occupation, only one party has a track record of lies and that is Tel Aviv. 

Furthermore, the genocidal war waged by Israeli Prime Minister Benjamin Netanyahu and his military against the Gaza Strip, along with the international positions, judicial or political, strongly point to the real perpetrator.

In light of the accusations launched by Israeli officials and media after the Majdal Shams incident, Netanyahu cut his trip to the United States short by several hours and returned to Tel Aviv. 

Israeli media said he was to chair a meeting of the small ministerial council. Hebrew media also reported that Netanyahu held preliminary consultations with military officials.

Lebanese Speaker of Parliament Nabih Berri confirmed that Hezbollah’s denial affirms its commitment and non-responsibility, and that Lebanon is not responsible for what happened. 

During a call with a UN Coordinator in Lebanon, Joanna Wronecka, Berri stated that Lebanon, which has been subjected to continuous Israeli aggression for over nine months, with the Israeli military targeting civilians, agricultural areas, emergency crews, and media personnel with internationally banned weapons, remains committed to Resolution 1701 and the rules of engagement by not targeting civilians, despite these blatant Israeli violations.

Former Lebanese Druze Progressive Socialist Party leader Walid Jumblatt said, “In light of Hezbollah’s statement denying the Islamic Resistance’s involvement in what happened in Majdal Shams, we emphasize the warning and alert regarding what the Israeli enemy has been working on for a long time to ignite strife and fragment the region and its components.”

The veteran politician added, “We have previously thwarted this project, and while it is reemerging, we are prepared alongside the resistance and all those confronting Israeli criminality and occupation.”

Jumblatt pointed out that “the history and ongoing nature of the Israeli enemy is full of massacres committed against civilians relentlessly”. 

He added, "The call is for everyone in Lebanon, Palestine, and the Golan to avoid any slip or incitement within the framework of the enemy’s destructive project, with the need to prevent the expansion of the war and to stop the aggression and firing immediately, emphasizing the rejection and condemnation of targeting civilians, whether in occupied Palestine, the occupied Golan, or southern Lebanon.”

Meanwhile, the head of the Lebanese Democratic Party and political leader of the Druze community, Talal Arslan, underscored, “What happened is nothing but a vile and failed attempt to detach the Arab Syrian Golan from its geographical nature and familial extensions, which has always rejected collusion against its Syrian Arab identity.”

He said in a statement, “The Golan will not fall into the trap of Israel’s project to feign protection of minorities, which aims only to fragment the region into micro-states that protect its forged borders.”

He also stated that “all free people in the world and in the Arab homeland, especially the unified national Arab Druze, are wholeheartedly with our people in the heroic Golan. It is the depth of our honorable resistance and an inseparable part of the occupied territories, which will only return to its natural state through steadfastness and resistance.”

The UN special coordinator for Lebanon, Jeanine Hennis-Plasschaert, and UNIFIL force commander General Aroldo Lazaro warned that further intensification of strikes “could ignite a wider conflagration that would engulf the entire region in a catastrophe beyond belief”. 

They urged maximum restraint from all sides, adding they were in contact with both the Israelis and Lebanese. 

Axios cited a US official as saying that the Golan incident “could be the trigger we have been worried about and tried to avoid for 10 months”. 

Lebanon’s foreign minister, Abdallah Bou Habib, told Reuters that any significant attack by Israel would lead to a “regional war”. 

 

 

Netanyahu should resign and surrender

Jill Stein has been one of the loudest and clearest voices in the race for president demanding justice for Gaza, and that begins with Benjamin Netanyahu immediately resigning as Prime Minister and surrendering to authorities. Netanyahu is a war criminal who has been charged with the following crimes by the International Criminal Court (ICC);

·  Starvation of civilians as a method of warfare as a war crime contrary to article 8(2)(b)(xxv) of the Statute;

·  Willfully causing great suffering, or serious injury to body or health contrary to article 8(2)(a)(iii), or cruel treatment as a war crime contrary to article 8(2)(c)(i);

·  Willful killing contrary to article 8(2)(a)(i), or Murder as a war crime contrary to article 8(2)(c)(i);

·  Intentionally directing attacks against a civilian population as a war crime contrary to articles 8(2)(b)(i), or 8(2)(e)(i);

·  Extermination and/or murder contrary to articles 7(1)(b) and 7(1)(a), including in the context of deaths caused by starvation, as a crime against humanity;

·  Persecution as a crime against humanity contrary to article 7(1)(h);

·  Other inhumane acts as crimes against humanity contrary to article 7(1)(k).

Jill demands Americans should not support the Biden-Harris funded genocide, and they should never accept this forced alliance with a war criminal.

Jill Stein: Wildcard Entry in US Election

Jill Ellen Stein born on May 14, 1950, is an American physician, activist, politician. She is currently running for president in the 2024 United States presidential election. Her campaigns for president have focused heavily on the proposal of a Green New Deal, which includes a number of reforms intended to address climate change and income inequality, as well as civil and political rights reform.

She was the Green Party's nominee for president of the United States in the 2012 and 2016 elections and the Green-Rainbow Party's candidate for governor of Massachusetts in 2002 and 2010.

In 2012, Stein received 469,015 votes, which accounted for 0.36% of the popular vote; in 2016, she received 1.45 million votes or 1.07% of the popular vote.

Stein originally supported activist and scholar Cornel West's 2024 presidential campaign under the Green Party and became his campaign manager.

After West withdrew his bid for the Green presidential nomination in order to instead continue his run for the presidency as an independent, Stein retracted her endorsement for West and said the Green Party would find a nominee elsewhere. She also hinted at a possible bid of her own.

On November 09, 2023, Stein announced her third bid for president on X (formerly Twitter), citing her main priorities as being anti-war, paving the way for a Green New Deal, Universal Healthcare, and a "pledge to stop genocide”. 

Stein's campaign has been criticized by the Democratic Party as having the potential to erode Joe Biden's support in the general election among left-wing voters.

United States: A shameful moment in history

Israeli Prime Minister Benjamin Netanyahu came to Washington DC to address Congress. According to Farrah Hassen of Institute of Policy Studies, it was “a shameful moment in US history.” 

“The International Criminal Court is seeking a warrant for Netanyahu’s arrest for war crimes and crimes against humanity,” Farrah explains. “But instead of arresting him, Congress gave him multiple standing ovations.”

It was the fourth time Netanyahu was invited to address the body — the most for any world leader. But as thousands of protestors outside raised their voices for a ceasefire in Gaza, something was different this time.

Roughly half of the Democratic caucus boycotted Netanyahu’s speech, refusing to be seen applauding — and complicit with — a perpetrator of genocide. 

"Support for Israel has become a thoroughly partisan issue” thanks to this movement pressure, Phyllis Bennis told Democracy Now! 

“The fact that more than 100 Democratic lawmakers decided to skip the speech is a real statement of how supporting Netanyahu has become a political liability for public figures across the United States."

“Our movement has redefined the demand for a ceasefire,” she added. It now means not only an end to the violence, but also “a massive escalation” of humanitarian aid and an immediate halt to the arms shipments Netanyahu came before Congress to demand more of.

In a powerful op-ed before the speech, Khury Petersen-Smith urged members of the Congressional Black Caucus, historically known as the conscience of Congress, to boycott Netanyahu's address. "Make no mistake,” he warned: “This invitation affirms Israel’s genocide” and is “an affront to international law." 

Pointing out the long history of solidarity between movements for Black and Palestinian freedom, Khury called on the Black Caucus to skip the speech, oppose those weapons transfers, and call for a permanent ceasefire.

Ultimately, many key members of the caucus did skip — and Vice President Kamala Harris, who was a caucus member as a senator, told Netanyahu afterward that she “will not be silent” about Gaza. 

Also this week, Americans celebrated the legacy of another key figure who connected movements for freedom at home to movements against war abroad, the late vice president, cabinet secretary, and New Deal architect Henry A. Wallace.

At the First Annual Henry A. Wallace Symposium, co-presented with the Wallace Global Fund and The Nation and co-sponsored by Busboys and Poets, several inspiring panelists talked about "Countering American Fascism: Lessons from Organizing in the US Heartland." 

It was the capstone event of Henry A. Wallace Fellowship, a paid summer internship program to build the future of the progressive movement. The speakers shared lessons from organizing, movement building, deep canvassing work, and Henry A. Wallace’s own life. 

Together, they highlighted how social movements are countering the dangerous force of American fascism by building an alternative vision: a multi-racial democracy and an economy that works for us all. 

US Election: Selecting Lesser (Bigger) Evil

I have been writing these blogs since June 2012. Over the years I have developed certain premises that include: 1) the United States is the biggest war monger, it creates conflicts around the world and supplies funds to perpetuate these conflicts to maintain its hegemony, 2) US foreign policy is driven by military complexes, the biggest beneficiary of conflicts/ wars, 3) US oil companies that earn windfall profits during conflicts, particularly in the MENA (Middle East and North Africa) region are the major donors in presidential election and 4) dishonest western media often run concocted stories to prove that the US is right in imposing economic sanctions on certain countries.

I have also come to the conclusion that United States, is not a true democracy but controlled-democracy. The citizens are forces to elect either of the two candidates. They term it selecting the lesser evil, but I term it “selecting the bigger evil” on the basis of above stated premises.

The US president and the entire US administration is supplying tons of lethal arms to Ukraine and Israel to perpetuate wars, rather than negotiating ceasefire. In Gaza alone nearly 40,000 people, mostly women and children, have been killed and the entire enclave has been reduced to debris, but US administration refuses to accept it is genocide.

Lately, Israeli Prime Minister, Benjamin Netanyahu was invited to address US Congress Members for the fourth time, whereas he should have been handed over to the authorities who have held him responsible for the genocide in Gaza.

My readers may recall one of my recent posts, “Neither Biden nor Trump fit to be US President”. Ironically, the US electoral system does not support candidature of an independent and US citizens will be forced to choose between Kamala Harris and Donald Trump, the darlings of military complexes and Wall Street and fully supported by the western mainstream media, of course in exchange for tons of dollars given to them to tow the US policies.

 

 

 

 

 

 

 

 

 

 

 

---------------------------

US hates and destroys three types of countries dated July 11 2024

https://shkazmipk.blogspot.com/2024/07/us-hates-and-destroys-three-types-of.html

 

This a very complicated subject but we have tried to be brief, concise and to the point. Let us say point blank that United States just can’t stand three types of countries: 1) countries not willing to accept its hegemony, 2) countries rich in mineral resources, especially energy products and 3) countries having strong social and cultural bonding.

The first category is led by China and Russia, which has a long history on conflict/ wars called ‘Cold War Era’. The later addition is Iran, which has been facing US sanctions for more than four decades because it termed United States ‘The Biggest Satan’.

In the second category most prominent are the oil and gas producing countries. These are hostage of US hegemony because of restriction on energy trade in ‘petro-dollars’ only. The countries facing extreme US hostilities include, Iran, Iraq, Libya, Venezuela and Russia.

United States suffers from worst social evils that include distance from religion, drug/ alcohol addiction, extra marital relation, abortion etc. Therefore, the US hate Muslim countries, some of them rich in energy resources, on top of the list are Saudi Arabia and Iran.

Ironically, the US foreign policy is dictated by three groups: 1) military complexes, 2) oil exploration and production companies and 3) companies owned and operated by Zionists.

The name of the game is create conflict, supply funds and arms to rebel groups and weaken the states. Till yesterday Venezuela was friend and biggest partner in oil trade, but at present it faces sanctions.

United States follows hybrid war and always chose battle grounds thousands of miles away from its borders, which include Korean Peninsula, Arabian Peninsula, Middle East and North Africa. This time Ukraine has been chosen to fight a proxy war against Russia. Let no one forget United States dropped two atom bombs on Japan in the Second World War.

The logical conclusion is, “United States is merchant of death, the biggest war monger and the biggest arms supplier, which wants to establish its hegemony around the world. It has the capacity to find and feed the touts, install and topple the governments and eliminate the agents when they become redundant”.

 

US Election: A race like no other in history

Immediately after US President Joe Biden dropped out of the 2024 race, a move not seen since President Lyndon Johnson stepped back at the height of the Vietnam War, a question suddenly arose. What path would Vice President Kamala Harris take to try and beat Donald Trump?

“Americans are going to have to choose between moving forward or backward, between hope and hate, between unity and division,” Biden said. “We have to decide—do we still believe in honesty, decency, respect, freedom, justice and democracy.”

The Republican nominee had been on a winning streak of late, avoiding a spotlight on his historic criminal conviction, pending trials or even repeated references to a fictional serial killer.

The media spent almost a month focused on Biden, his age and botched debate performance (Biden, at 81, is three years older than Trump).

Kamala wasted no time providing answers to the question. Her campaign is focusing on Trump’s status as a convicted felon, his various other legal entanglements, including being found liable for sexual abuse, and his starring role in blowing up abortion rights.

“I know Donald Trump’s type,” said the 59-year-old Kamala, a former US senator, state attorney general and district attorney.

Francis Wilkinson writes in Bloomberg Opinion that from here to November, the prosecutor should prosecute the predator. 

Polls showed the race tightening with Kamala’s entry, with more enthusiasm among Black and younger voters. Republicans are already trying to use immigration against her, despite Trump arguably being the main reason a bipartisan immigration reform bill was killed.

Then there’s the question of whether Americans are ready to elect the first female president.

Trump, who has a history of racist and misogynistic statements, risks alienating some of the very voters he needs if he pursues that track this time.

Many prominent Republicans however have already started racial attacks on Kamala, calling her “the DEI candidate.” In short, this is a race like no other in US history.

The next step will be for Kamala to select a running mate ahead of the Democratic National Convention.

As the new race was forming up this week, Biden addressed the nation, framing his decision to bow out as a way of uniting the country around a new generation of leaders. He also warned of what he’s said is the existential peril democracy faces in November. 

Courtesy: Bloomberg 

Wanted War Criminal

Pezeshkian emphasizes unity

In a recent interview with the media outlet of the office of the Leader of Islamic Revolution Ayatollah Seyyed Ali Khamenei, President-elect Masoud Pezeshkian underscored the importance of adhering to the Leader’s general policies as a crucial factor in resolving disputes and fostering national unity.

“We have the general policies of the Leader, which I have consistently referred to as our guiding light throughout the debates and elections,” Pezeshkian stated.

“These policies clearly define our goals.”

He further explained that it is now the responsibility of experts, wise individuals, managers, and officials to develop comprehensive programs in alignment with these policies.

“If we accept these principles and draft laws that conform to the system's policies, and hold ourselves accountable for their implementation, disputes and conflicts will naturally become meaningless,” Pezeshkian added.

During his detailed conversation with KHAMENEI.IR, Pezeshkian delved into his administration’s strategy for engaging with various sectors of the country.

He also discussed the criteria for selecting cabinet members and outlined the overarching policies and approaches that will guide his government over the next four years.

Pezeshkian turned his attention to cultural issues, advocating for self-improvement as the primary solution.

“Regarding cultural matters, we must first correct ourselves,” he emphasized. “There is no need to criticize others; we should begin by criticizing ourselves.”

Pezeshkian elaborated that personal integrity and genuine concern for the public are essential. “If I am a righteous person with good morals, if I truly care for the people and they recognize my sincerity, there is no way they will dislike me or refuse to follow my behavior and ethics,” he said.

He criticized the current conduct of some leaders, noting that their actions often repel the public. “Our behavior and conduct are such that when people observe them, they find them off-putting. Why should they emulate us? Why should they make themselves like us?”

Pezeshkian’s comments reflect a broader vision for his administration, prioritizing adherence to established policies and personal accountability as the foundations for national cohesion and cultural renewal.

The inauguration ceremony of the president-elect Masoud Pezeshkian will be held in the Parliament next week on Tuesday afternoon.

A ceremony will be held on Sunday to present the decree for his presidency, with the Leader of Islamic Revolution and the country’s high-ranking officials in attendance.

 

Pakistan Stock Exchange benchmark index declines 2.61%WoW

Pakistan Stock Exchange experienced volatility throughout the week ended on July 29, 2024, heavily influenced by political noise. The benchmark index lost 2,088 points 0r 2.61%WoW at close at 78,029 points.

With Pakistan's agenda yet to be included in the IMF board meeting, authorities are focusing on fulfilling other external financing requirements, with efforts including visit to China for possible debt rescheduling, especially of power producers.

The Finance Minister engaged with global rating agencies, Fitch and Moody's, aiming for a possible improvement in the country's credit rating to facilitate capital raising through external sources.

In the last T-Bills auction, yields dropped by 30-56 bps, indicating market expectations of a 50-100bps cut in the upcoming Monetary Policy Committee (MPC) meeting on Monday. However, experts anticipate the MPC to maintain the status quo due to the re-emergence of strong inflationary pressures from food supply disruptions and recently announced revenue measures in the FY25 budget.

The July 2024 inflation is expected to clock in at 10.96%YoY as compared to 12.57%YoY in the preceding month. On the external front, foreign exchange reserves held by the central bank declined by US$397 million to US$9.03 billion as at July 19, 2024.

With the said volatility in market, participation decreased by 27.3%WoW, with the average daily traded volume falling to 337 million shares, from 464 million shares a week ago.

On the currency front, PKR largely remained flat against the greenback throughout the week, closing the week at 278.3/US$.

Other major news flows during the week included:1) Forex reserves declined by US$369 millio, 2) Income estimates slashed to PKR9.1 trillion, 3) Auto financing registered downward trend for second straight year and 4) GoP announced to pull out of fuel pricing process, giving OMCs free hand.

Leasing, Vanaspati & allied industries and Textile spinning were amongst the top performers, while ETF’s, Inv. Banks/ cos., and Jute were amongst the worst performers.

Major net selling was recorded by mutual funds with a net sell of US$5.0 million. Foreigners and insurance co. absorbed most of the selling with a net buy of US$4.6 million and US$4.4 million, respectively.

Top performing scrips of the week were: PAKT, GADT, JVDC, FFBL and LCI, while laggards included: NCPL, NPL, KAPCO, INIL and FCEPL.

Going forward, market’s focus will primarily be on the MPC meeting scheduled for Monday, with any rate cut to boost investor’s confidence and draw increased attention to the cyclical sector.

Additionally, the anticipated approval from the IMF executive board next month is likely to support bullish momentum.

Sectors benefiting from monetary easing and structural reforms would remain in the limelight.

Netanyahu speech: Nothing but heap of lies

The world knew what to expect when Israeli Prime Minister Benjamin Netanyahu walked in to address the elected members. Every word of his speech was laced with the same tired lies that have been repeatedly debunked for the last 10 months – and the last 76 years.

It is on record that at least 40,000 Palestinians are confirmed dead and experts estimate the final death toll will be as high as 186,000. Hundreds of thousands more have been gravely injured, including children who have had to get their limbs amputated without anesthesia because Israel is blockading medical supplies and destroying health infrastructure.

Yet Netanyahu claimed that civilian casualties were “practically none.”

Israel has continuously blocked aid from entering Gaza, shutting down access points and slow-walking aid with “security checks.” Israeli protesters have been caught on camera multiple times destroying food trucks. For months experts have warned that Gaza is descending into famine, and shocking photos emerged of emaciated children that looked identical to images of Jewish prisoners in Nazi concentration camps.

Yet Netanyahu claimed that if Gaza isn’t getting enough food “it’s because Hamas is stealing it.”

Israel has sabotaged or walked away from multiple ceasefire negotiations, repeatedly rejecting proposals that Hamas accepted which included every key provision – such as returning all remaining hostages that Israel says they want. They’ve resisted calls for even a temporary ceasefire to allow for the process of peace.

Yet Netanyahu claimed that it is Hamas that doesn’t want a ceasefire.

While in the US Netanyahu refused to tell the truth. He perpetuated the dangerous lie that non-violent protesters “stand with Hamas” and are funded by Iran.

With those protesters outside of Congress his lies would never be loud enough to drown out protestors’ demand for justice for Palestine.

While protestors marched and demanded justice, the vast majority of the members of Congress – from both of the corporate parties – gave this genocidal monster a hero’s welcome.

Vice President Kamala Harris (now the presumptive Democratic nominee) issued a statement condemning the protest and spreading dangerous propaganda that threatens the very fundamentals of protected speech.

She showed her true colors. After days of glowing coverage that Kamala would be “better on Gaza” than the current president, she revealed her allegiance with Israeli propaganda by repeating Netanyahu’s talking points.

The election has radically transformed in the space of a few days, but as Joe Biden once said, nothing has changed fundamentally.

 

Outlook for BRICS Common Currency

The prime objective of formation of BRICS, in my opinion, is to “end the US hegemony by getting rid of involvement of US currency in trade and above all US dominated settlement system”. It is not an easy task because creation of an alternative currency and dependable settlement system is a mammoth job, especially because United States would not like to see end to its hegemony.

De-dollarization of the global financial system is the long-term goal of the bloc amid Western economic sanctions on several members. For example, Saudi Arabia and the UAE might face rising pressures to sell oil to China and India in a currency acceptable and dependable. Trade in general is set to be increasingly carried out in the bloc’s currencies. Nonetheless, a common BRICS currency is not an easy task given the Gulf countries’ heavy links with the West and the Petrodollar, large economic disparities among members, and the strength of the Western financial system. 

BRICS economies will remain heterogeneous, with marked differences in their stage and pace of development, and in economic size and structure. For example India, Egypt and Ethiopia will grow at the fastest rates, boosted by great catch-up potential. China will benefit from its high-tech manufacturing sector. Non-oil diversification strategies will buttress activity in Saudi Arabia and the UAE. In contrast, Brazil, Iran, Russia and South Africa are set to grow at underwhelming clips due to lackluster progress on structural reforms. 

The western analysts believe, “Expansion will bolster the BRICS geopolitical significance—provided the group can reconcile its internal tensions—and its combined economic muscle, but the direct economic impact will be small. The BRICS group is unlikely to become a solid geopolitical and economic construction, regardless of how many bricks are added to the wall.” 

 The biggest agreement is, “Despite some pressure, the Petrodollar will remain the preferential currency for trade. A greater role of BRICS and other emerging markets in global trade may create more natural demand for alternatives to Petrodollars, but this has not happened so far. The higher share of CNY in trade invoicing doesn’t seem to be dethroning Petrodollar, but rather pushing out second tier developed market FX, such as GBP. One direction in which Petrodollar could be challenged given the geopolitical confrontation is the higher focus of BRICS trade on other emerging market economies.” 

Oil spill from ship sinking off Philippines

The Philippines is in a race against time to contain an oil spill after a tanker carrying close to 1.5 million liters of industrial fuel capsized and sank off the country's coast, reports Saudi Gazette.

There are fears the "enormous" spill - which is already stretching out over several kilometers - could reach the shore of the capital, Manila, Coast Guard spokesman Rear Admiral Armando Balilo told reporters.

The ship was one of two that sank in the region on Thursday, with the second going down just off Taiwan's southwestern coast.

Both Taiwan and the Philippines are seeing large amounts of rain as Typhoon Gaemi moves through the area, causing widespread flooding.

The typhoon made landfall in mainland China on Thursday evening local time, with authorities declaring the highest tier disaster warning.

It first struck Taiwan on Wednesday evening, killing three as it made its way across the island.

Four counties and cities in Taiwan saw more than a thousand millimeters of rainfall during a 14-hour period ending Thursday afternoon.

The Philippines avoided a direct hit by Gaemi, but the storm intensified seasonal monsoon rains, triggering widespread flooding across large swathes of Metro Manila and its suburbs.

Despite the heavy rains, the MT Terra Nova, which sails under the Philippines' flag, had not broken any regulations around traveling in heavy weather, according to Rear Admiral Balilo.

The tanker was heading for the central Philippine city of Iloilo when it sank, with 17 crew members on board.

One died, but 16 were successfully rescued, officials said. Authorities are investigating whether bad weather was a factor.

The Coast Guard is now "racing against time" to contain the spill, which could - if all of the oil leaks - become the biggest in the country's history.

High winds and rough seas were hampering their attempts, however.

Even if they managed to avoid a catastrophe of that magnitude, Rear Admiral Balilo said it would "definitely affect the marine environment".

Pando Hicap, chairman of local fishing group Pamalakaya, said the spill was "alarming" because fishermen's livelihoods were "dependent on the waters".

"They don't have any alternative," he told news agency AFP.

Meanwhile, to the north in Taiwan, all nine sailors were initially reported missing after their Tanzania-flagged cargo ship Fu Shun went down.

The Myanmar nationals were forced to abandon the sinking ship, Hsiao Huan-chang, head of the fire agency, told AFP.

"They fell into the sea and were floating there," he said.

The first attempts to reach the crew, who were wearing lifejackets, were hampered by the low visibility and high winds, but by the end of Thursday three had been reported rescued.

The typhoon was originally expected to hit further north, but the mountains of northern Taiwan steered it slightly south towards the city of Hualien.

The typhoon is expected to weaken as it tracks over the mountainous terrain of Taiwan before re-emerging in the Taiwan Strait towards China.

A second landfall is expected in the Fujian province in southeastern China later on Thursday. Several rail operators in China have also suspended operations.

IRGC confiscates oil tanker smuggling diesel

The Islamic Revolution Guards Corps (IRGC) Navy has once again demonstrated its commitment to securing the Persian Gulf, this time by confiscating a foreign oil tanker carrying a substantial amount of smuggled diesel fuel. 

General Heidar Honarian Mojarrad, Commander of the IRGC Navy’s 2nd naval zone, confirmed the seizure on Monday, revealing that the tanker, flying the flag of Togo, was apprehended near the port of Bushehr while transporting a staggering 1.5 million liters of diesel. 

The General stressed that the seizure was conducted under a judicial warrant. The confiscated tanker, along with its crew of 12 foreign nationals, was promptly transferred to a terminal operated by the Bushehr Oil Products Co. for the unloading process.

This latest seizure follows a similar incident in late January when the IRGC Navy apprehended another foreign tanker carrying two million liters of smuggled fuel in the same region. 

The IRGC Navy's success in these operations is attributed, in part, to the deployment of advanced detection equipment. This sophisticated technology enables the Navy to meticulously monitor all maritime movements in the Persian Gulf, ensuring the safety and security of the vital marine route. 

 

 

United States: Netanyahu to face deep divide

Israeli Prime Minister Benjamin Netanyahu will be greeted by deep divide among US lawmakers, a distracted US public and large protests on Wednesday as he addresses the US Congress for a record fourth time.

The long-time Israeli leader will speak to a joint meeting of the Senate and House of Representatives at 1900 GMT, passing British wartime leader Winston Churchill, who made such addresses three times.

Netanyahu's speech is expected to focus on coordinating the Israeli and US response to the volatile situation in the Middle East, where there is a growing danger of the Gaza war spilling over into a wider regional conflict.

He is also expected to use his speech to call for stronger action against Iran, which supports Hamas and Lebanon’s Hezbollah fighters and has drawn increased US condemnation over its recent nuclear advances.

Though Netanyahu's visit was orchestrated by Congress' Republican leaders, it is likely to be less confrontational than in 2015, when Republicans sidestepped then-President Barack Obama and invited Netanyahu's to Congress to criticize the Democrat's Iran policy.

This time, Netanyahu will seek to bolster his traditional links to Republicans but also look to ease tensions with Biden, whom he will rely on for the remaining six months in the president's term.

He must also reach out to Vice President Kamala Harris, who has at times been more forward-leaning than her boss in criticizing Israel for heavy Palestinian civilian casualties in Gaza.

Activists have promised mass protests, and the Capitol building was surrounded by high fencing and additional police. Dozens of Washington streets were also due to be closed on Wednesday.

Netanyahu's speech comes as Washington is largely preoccupied with the fallout from Biden’s announcement on Sunday that he was ending his re-election bid and endorsing Kamala for the Democratic presidential nomination.

Dozens of Democrats plan to skip the speech, many expressing dismay over Israel's war in the Palestinian enclave and saying they do not want to help Netanyahu offset declining domestic poll numbers. The Palestinian death toll from the offensive has exceeded 39,000, Gaza health officials said.

"For him, this is all about shoring up his support back home, which is one of the reasons I don't want to attend," Senator Chris Van Hollen told reporters. "I don't want to be part of a political prop in this act of deception. He is not the great guardian of the US-Israel relationship."

The Democrats planning to stay away also included Senators Dick Durbin, the chamber's number two Democrat, Tim Kaine, Jeff Merkley and Brian Schatz, all members of the Senate Foreign Relations Committee, as well as Patty Murray, who chairs Senate Appropriations.

In the House, those staying away included progressives like Representatives Rashida Tlaib and Alexandra Ocasio-Cortez, as well as Ami Bera, a senior member of the Foreign Affairs Committee, and Adam Smith, the top Democrat on Armed Services.

Smith said he never attends joint meetings but also described himself on Tuesday as "very, very opposed to what Prime Minister Netanyahu is doing in Israel."

Murray normally would have presided, as the senior Senate Democrat, because Harris will not attend. Democratic Senator Ben Cardin, who leads the foreign relations committee, will replace her.

Some Republicans criticized Kamala for traveling outside Washington instead of going to the speech. She will meet with Netanyahu separately.

But she was not the only candidate staying away. Republican Senator JD Vance, running for vice president on the ticket with former President Donald Trump, will be away "as he has duties to fulfill as the Republican nominee for Vice President," Trump campaign senior adviser Jason Miller said in a statement.

Netanyahu was to travel to Florida to meet with Trump later this week. The meeting will be their first since the end of Trump's presidency, during which the two forged close ties.