China oil imports from Iran surge to 1.75 million bpd

According to reports, Chinese import of Iranian oil has reached a record of 1.75 million barrels per day (bpd) in August. The current figure has surpassed the previous peak of 1.66 million bpd achieved in October 2023 and is almost 50% higher compared with 1.24 million bpd in July.

Shipments into Rizhao and Dalian are significantly higher month on month, said Muyu Xu, an analyst with Kpler

“Chinese teapots see refining margins slightly improving, they now have stronger motivation to ramp up production and therefore need more feedstock,” she said.

Flows into Lanqiao/Rizhao and Dalian almost doubled compared to the previous month to 342,000 bpd and 132,000 bpd, respectively.

Oil from Iran has become the cheapest option for Chinese buyers, even more than Russia and more independent refiners are seeking barrels from the OPEC producer to boost their margins, said traders who participate in the market.

Iranian Light was last offered at a discount of US$6.0 a barrel to ICE Brent, they added, compared with a discount of less than a dollar for comparable crude from Russia.

Importers registered in China’s Shandong province were the biggest buyers of Iranian crude - masking as Malaysian - accounting for over 70% of the volume, according to customs data. Overall, eight Chinese regions including Liaoning and Henan took oil from the Southeast Asian nation, the most since October 2023.

Earlier this month, Reuters reported that Iran has also been expanding its oil destination markets as the country is pushing to send more oil to the global markets in an attempt to neutralize Western sanctions.

Iran has sent shipments of crude oil to new destinations such as Bangladesh and Oman, according to shipping sources and data cited by Reuters.

Oil sales are Iran's major revenue source and the country has been looking for ways to sidestep US sanctions on its crude exports that former president Donald Trump re-imposed in 2018 over Tehran's nuclear program.

Iran, which is exempt from output quotas set by the Organization of the Petroleum Exporting Countries (OPEC), is striving to maximize production and exports.

Former Oil Minister Javad Oji said in July that Iran was selling crude oil to 17 countries, including those in Europe, according to Mehr News Agency.

In one new trade, the Golden Eagle tanker sailed near the port of Chittagong in Bangladesh earlier this year after receiving oil from another vessel that loaded it from Iran’s Kharg Island according to available evidence based on shipping data, Claire Jungman, from US advocacy group United Against Nuclear Iran, told Reuters.

The Golden Eagle offloaded parts of the cargo to smaller tankers in ship-to-ship transfer operations around Chittagong in April, said Jungman, whose organization tracks Iran-related tanker traffic via satellite data.

The shipment to Bangladesh was separately confirmed by another oil export tracking source.

An official with state-owned Bangladesh Petroleum Corporation, which operates the country's main refinery, said it did not buy the cargo and it was difficult to establish who the buyer was.

Will Modi come to Pakistan to attend the SCO meeting?

The PML-N love for India has invited Indian Prime Minister Narendra Modi to the upcoming Shanghai Cooperation Organization (SCO) meeting in Islamabad, despite India-Israel relationship, particularly in munitions supply and ongoing genocide in Gaza.

One of the narratives is that Pakistan being the host has to extend the invitation to India, but the other narrative is that Modi should decline the invitation and send foreign minister instead.

The two countries downgraded their diplomatic ties in August 2019 and recalled their high commissioners. This is now the longest period in peacetime that the two countries have been without their top diplomats in each other’s capital.

SCO is a multilateral platform, but Modi’s presence in Islamabad would nevertheless would be seen significant. If nothing else, the sidelines of the SCO summit offer the two sides a chance to start talking about talks.

It is a harsh reality that the hawks on both sides are not interested in normalization of relationships. India considers itself a regional super power, it has joined various economic cooperation groups, but seems least interested in relations with SAARC members.

There is no denying that there are major differences between the two countries, as well as the thorny disputes that they have fought many wars on. There seems no hope of easing the tension, yet for a like SCO offers opportunity to establish working relationships.

Pakistan made the first move in May last year when then-foreign minister Bilawal Bhutto-Zardari went to Goa to attend the SCO’s Council of Foreign Ministers. Though the reception in India was far from warm despite the significance of his visit, Bilawal’s presence sent a positive signal that Pakistan remains open to engaging with New Delhi diplomatically.

The SCO is a multilateral platform and, therefore, of limited import as far as India-Pakistan ties are concerned. Still presence of Indian delegates in Islamabad should bring some positivity. If nothing else, the sidelines of the SCO summit offer the two sides a chance to start talking about talks.

 

PSX average daily trading volume up 28.5%WoW

The benchmark index of Pakistan Stock Exchange showed signs of weakness earlier in the week since Pakistan was not included in the IMF’s executive board meeting agenda, which led to a weekly loss of 0.4%WoW, closing at 78,488 points.

The Government of Pakistan (GoP) has requested Saudi Arabia to increase it’s lending by US$1.5 billion from existing US$5 billion and are also seeking US$4 billion from Middle East based commercial banks to seize the external financing gap.

The global rating agency Moody’s upgraded Pakistan’s debt ratings to Caa2 from Caa3 which instilled positivity among investors.

Market participation remained elevated, with the average daily traded volume rising to 602.12 million shares from 468.06 million shares a week ago, up 28.6%WoW.

According to news flows FBR is likely to miss August 2024 collection target by PKR50 billion.

Foreign exchange reserves held by State Bank of Pakistan (SBP) rose by US$112 million on a weekly basis to US$9.4 billion as of August 23, 2024.

During the week secondary market yields saw a marginal increase, which brought the 3-month yield to 18.05% and 1-year to 16.95%.

Furthermore, PKR largely remained stable against the greenback throughout the week, closing the week at PKR278.54/US$. 

Other major news flows during the week included: 1) Punjab extended PKR14/unit power relief to federal capital, 2) finance minister announced incentives to attract foreign direct investment, 3) CPEC debt re-profiling plan amounting to US$8 billion prepared, 4) ECC approved two remittance incentive schemes and 5) Foreign investors repatriate US$139 million in July 2024.

Jute, Transport, Exchange Traded Funds, Food & Personal care products and Textile Weaving were amongst the top performing sectors, while Textile spinning, Leather & Tanneries, Vanaspati & Allied Products, Real Estate Investment Trust and Paper & Board were amongst the worst performers.

Major net selling was recorded by Banks/DFI with a net sell of US$3.85 million. Individuals absorbed most of the selling with a net buy of US$5.84 million.

Top performing scrips of the week were: NBP, COLG, GLAXO, MTL, and MARI, while top laggards included: ABOT, AVN, SRVI, SML, and PSX.

Looking ahead, market is expected to continue its positive momentum with anticipated August 2024 lower inflation reading, upcoming MPC result and any development on the IMF deal remaining in focus.

Analysts opine that sectors benefiting from monetary easing and structural reforms would remain in the limelight. With declining fixed income yields, high dividend-yielding stocks are expected to remain favorable.

 

Women Leading Central Banks

According to the International Monetary Fund (IMF) women are leading more central banks than ever before, thanks to appointments in the past year, but recent gains still leave the share of female governors far short of parity. Before you read the details, please join me in applauding the services of Dr. Shamshad Akhtar who was appointed Governor, State Bank of Pakistan on January 02, 2006.

Dr. Shamshad Akhtar

Dr. Shamshad Akhtar took over as Governor, State Bank of Pakistan on January 02, 2006 for a three-year term. Dr. Akhtar, who is the first woman and the 14th Governor of the State Bank since its inception in July, 1948 brings rich experience, both national and international, to her new assignment.

Prior to her appointment as SBP Governor, Dr. Akhtar has been serving the Asian Development Bank (ADB) as its Director General, Southeast Asia Department since January, 2004. Earlier, she was Deputy Director General of the Department. She also held the position of Director, Governance, Finance and Trade Division for East and Central Asia Department of ADB.

Dr. Akhtar began her career in ADB in 1990 and rose to the position of Manager in 1998 after serving as Senior and Principal Financial Sector Specialist. She has been ADB’s Coordinator for APEC Finance Ministers Group from 1998-2001 and has served on a number of ADB committees including the Reorganization Committee, Appeals Committee and Oversight Committee etc. She has interfaced and represented the Asian Development Bank at the Bank for International Settlements and the International Organization of Securities Commissions (IOSCO). She has developed a broad regional expertise in financial and economic matters of Central Asian Republics & Southeast Asia including the People’s Republic of China.

Before joining the ADB, Dr. Akhtar worked for 10 years as an Economist in the World Bank’s Resident Mission in Pakistan. In Pakistan, she also worked briefly with the Planning Offices of both the Federal and Sindh Governments. She dealt with wide ranging subjects which covered analysis of macroeconomic situation, finance and money and structural reforms of key sectors including industry and agriculture. Her work included papers on taxation system of Pakistan, state of inter-governmental fiscal relations, poverty incidence & its dimensions and foreign direct investment etc. Dr. Akhtar also contributed to the development of diversification of financial markets including the analysis of monetary policy and state of banking industry (at the World Bank) and restructuring of the Securities & Exchange Commission, Insurance Commission and worked closely with the private sector including the stock exchanges of Pakistan. She has been advising the central banks on reforms of financial markets. Dr. Akhtar has also been dealing with the banking sector’s legal, regulatory and institutional reforms while advising on diversification of the industry to exploit long term funding through development of bond market.

Born in Hyderabad, Dr. Akhtar had her earlier education at Karachi and Islamabad. She has had an excellent academic record. She graduated from the University of Punjab with a B. A. Economics degree in 1974. Dr. Shamshad Akhtar has an M.Sc. in Economics from the Quaid-e-Azam University, Islamabad, an M.A. in Development Economics from the University of Sussex in 1977 and a Ph.D. in Economics from the U.K.’s Paisley College of Technology in 1980. She is a post-doctoral fellowship Fulbright Scholar and was a visiting fellow at the Department of Economics, Harvard University in 1987.

Dr. Akhtar has presented numerous papers on economics and finance at international conferences/seminars/symposia. Her research interests are on Monetary and Fiscal Policy, Banking and Capital Market, International Finance Architecture, Regulation and Supervision, and Industrial & Corporate Restructuring.

The number of women in governor roles rose to 29 this year from 23 last year, though that left the share of female leaders at just 16% of the world’s 185 central banks, according to an April report by the Official Monetary and Financial Institutions Forum. Greater gender balance in senior positions may help increase the diversity of thought and checks and balances, in turn contributing to increased economic and financial stability and improved performance, IMF research shows.

Appointments this year in Bosnia and Herzegovina and Papua New Guinea are examples of how smaller economies are driving more progress on gender balance, according to OMFIF, a London-based think tank for monetary, economic and investment issues.

This year’s rise was the biggest gain in more than a decade of surveys, but the Chart of the Week shows how central banks still have much room to make progress toward greater parity in the ranks of top policymakers steering the global economy.

The tally adds to evidence of the struggle of women at central banks as well as in the economics discipline, where they remain underrepresented even after steady gains.

A first-of-its-kind IMF survey of the European Central Bank and its Group of Seven counterparts showed last year that fewer than half of employees at those institutions are women, but on average only a third of women are economists or managers. This survey underscores how policies to eliminate gender gaps have been only partially successful.

ECB Executive Board member Isabel Schnabel has cited a substantial gender imbalance in economics—one that the institution is determined to change among its own staff. Schnabel noted in a 2020 speech that the barriers aren’t insurmountable, and that mentoring opportunities and ensuring childcare can help narrow gender imbalances. 

The latest additions to the list of countries naming a woman as central bank chief came in January, when Jasmina Selimović began a six-year term in Bosnia and Herzegovina and Elizabeth Genia was appointed to the top job after serving as acting governor. Last year, Michele Bullock became the first woman to lead the Reserve Bank of Australia.

Cambodia, Georgia, Moldova and Montenegro also appointed women as the heads of their monetary authorities last year, according to OMFIF’s 2024 gender balance index. 

 

Israel-Lebanon escalation to weigh on Kamala

Escalation of conflict between Israel and Lebanon’s Hezbollah leading to higher oil prices and inflation could weigh on the popularity of US Presidential candidate Vice President Kamala Harris, reports ZAWYA.

The resulting uncertainty in the region would lead to higher oil prices and inflation, which could make Kamala less popular, Yoel Sano, head of global, political and security risk, BMI, said.  

Republican candidate, Donald Trump is likely to be less critical of Israel and Saudi Arabia, while Kamala is, rhetorically at least, more sympathetic to the Palestinian cause, experts said.

Should Trump return to the White House, Sano said a nuclear deal with Iran is ‘not impossible’ under his leadership.

But there is a matter of willingness on the Iranian side, and a Kamala presidency would be ‘more conducive’ to re-starting talks, Sano said, as well while Trump did not object to a nuclear deal in principle, he objected to a deal signed by President Barack Obama in 2015. 

“Iran is potentially undergoing a leadership transition. The supreme leader Ayatollah Ali Khamenei is 85 and has been in office 35 years.

“In this context, his would-be successors are unlikely to want to be seen as soft towards the US by rushing towards a new nuclear deal with the US,” he said.

While the Israel-Hamas conflict is likely to take ‘many months’ to resolve, BMI would expect it to be over by the time the new Presidential term starts in January 2025, Sano said.

Both Kamala and Trump continue to favour the process of normalization of relations between Israel and Saudi Arabia, which has been delayed by the Israel-Hamas conflict, he said, adding that it is unclear when progress can be made.

While escalation of Israel and Hezbollah hostilities would weigh heavily, BMI last month put likelihood that escalation would happen at 30%, with both sides unlikely to want it due to factors including increased domestic tensions and economic costs.

Tension between the two sides flared at the weekend, but analysis from S&P Global Market Intelligence said the exchange of fire was unlikely to grow in scope.

BMI projections for the US election, which is due to take place in November, showed a tight 50–50 race between Trump and Kamala, with Kamala perceived as a "highly energizing candidate" compared to Biden, Iris Malone, BMI’s director, political science, data modelling, said.  

Prior to her entering the race, polling on Democrat party voter enthusiasm was 36% in April, but it has jumped to 85% for Kamala, she said.

 

Iran appoints female government spokesperson

President Masoud Pezeshkian has appointed Fatemeh Mohajerani as the new spokesperson for the Iranian government on Wednesday. The appointment marks a historic first, as Mohajerani becomes the first woman to hold this position in Iran.

Mohajerani, born in 1970 in Arak, holds a Doctorate of Business Administration from Heriot-Watt University Edinburgh Campus. She served as the head of the Technical and Vocational Training University of Shariati (special for females) in Hassan Rouhani’s government. Mohajerani was also elected as the head of the Center for Brilliant Talents in 2017. 

In addition to this appointment, the cabinet meeting also saw the appointment of Elias Hazrati, a former member of the Iranian Parliament, as Chairman of the Government's Information Council. 

 

Namibia blocks vessel carrying munitions

According to a BBC report, a vessel MV Kathrin, en route from Vietnam, was blocked from docking in Namibia on suspicion of carrying military cargo for Israel’s ongoing war against Hamas in the Gaza Strip.

The ship was stopped due to “explosive material destined for Israel,” Namibian Justice Minister Yvonne Dausab claimed. The ship, which left from Vietnam, had requested to dock at Walvis Bay before continuing north towards the Mediterranean.

Walvis Bay, Namibia's largest commercial port, is located on the western side of the African continent. It handles nearly 900 vessels and about eight million tons of cargo each year, the BBC cited the Namibian Ports Authority (Namport). The MV Kathrin was set to dock there on Monday but was stopped.

Justice Minister Yvonne Dausab said this was in line with Namibia's support for the Palestinian people and its call to end the violence in Gaza, as reported by the state-run New Era news website.

The report noted that the reason for the MV Kathrin's request to dock was initially uncertain, as ships on long voyages often stop for supplies, rest, or cargo exchanges.

Citing a police investigation, Dausab later confirmed that the MV Kathrin was "indeed carrying explosive material destined for Israel" and was thus barred from entering Namibian waters.

She stressed that Namibia is committed to avoiding involvement in "Israeli war crimes, crimes against humanity, genocide, as well as its unlawful occupation of Palestine."

The BBC noted that the Economic and Social Justice Trust (ESJT) welcomed the decision, with Herbert Jauch saying they are pleased that our government has decided to respect international law and not be complicit in genocide."

Namport, which had not responded to the BBC before Dausab's statement, mentioned it had not received the required pre-clearance documents but promised to ensure "effective safety and security of our territorial waters and ports" while supporting Namibia's international viewpoint on the ongoing conflict.

In their report, the BBC noted that Namport had earlier allowed another vessel with dangerous cargo to pass through but not dock.

Rights groups warned that allowing the vessel to dock could involve Namibia in possible human rights violations.

 

Indian dockworkers’ strike averted

The latest showdown between dockworkers in India and their employers appears to be ending without any significant disruptions.

Port employees’ unions in India agreed to a new five-year wage deal with government officials, averting a planned nationwide strike scheduled to start Wednesday, Bloomberg’s Rajesh Kumar Singh and Weilun Soon report.

The new deal halts a walkout that could have involved nearly 20,000 workers and brought widespread disruption to cargo operations at some of the nation’s busiest ports.

Unions at India’s 12 major state-run ports have been negotiating with the government since 2021 to try to increase pay.

Under the newly agreed terms, unions accepted an 8.5% wage increase over five years, backdated to January 01, 2022, said Narendra Rao, a working committee member of the Centre of Indian Trade Unions.

P.M. Mohammed Haneef, president at All India Port and Dock Workers’ Federation, said management has agreed to conclude the proceedings of the wage negotiations panel within 15 days.

Earlier this year, labor disruptions at Germany’s biggest ports threatened to worsen shipping delays, and a French union called a series of strikes to protest government pension reforms, potentially slowing grain export terminals.

In March, Finland’s ports and rail networks faced strikes over labor market reforms.

The following month, port workers in Chile staged protests that disrupted the loading and unloading of ships in one of the biggest exporters of raw materials from copper and lithium to pulp and fruit.

Perhaps the biggest potential problem with maritime labor is unfolding in the United States, where talks between East and Gulf Coast dockworkers and their employers are at a stalemate, a little over a month before the current contract expires September 30, 2024.

 

Bangladesh Floods: Natural Calamity or Manmade Disaster

The recent floods in Bangladesh have underscored the complex and often contentious nature of water management in South Asia. As the region faces increasing challenges from climate change and population growth, the need for cooperation and mutual respect between nations has never been more urgent. The disaster serves as a wake-up call, highlighting the critical importance of regional collaboration in managing shared resources and ensuring the well-being of all people in the region.

Bangladesh, frequently affected by natural calamities, is now enduring one of the worst floods in recent memory. While floods are common in this region, the current catastrophe is not solely attributable to nature’s wrath. Instead, it is being increasingly linked to the actions of neighboring India.

The recent and abrupt release of water from the Dumbur Dam in India’s Tripura State, located upstream of the Gumti River, has sparked unprecedented flooding in Bangladesh’s eastern border districts. This incident has intensified long-standing tensions between the two countries, with Bangladesh accusing India of negligence and poor management of their shared water resources.

The flood’s impact has been nothing short of catastrophic. More than three million people have been affected, with vast areas of farmland, homes, and infrastructure swallowed by the surging waters. The districts of Feni, Parshuram, Fulgazi, and Chhagalnaiya have suffered the most, as the Chhota Feni River, along with the Muhuri, Silonia, and Kahua rivers, swelled beyond control.

Residents of these regions are in shock, noting that such severe flooding has not been witnessed in over three decades. The immediate trigger for this disaster, as widely believed in Bangladesh, was India’s decision to release water from the Dumbur Dam.

Indian authorities, however, have pointed to heavy rainfall in the Gumti River’s catchment areas as the primary reason for the dam’s release. Nonetheless, Bangladeshi officials and local media remain adamant that the scale of the flooding could have been mitigated with better management and communication from the Indian side.

In response to the growing accusations, India’s Ministry of External Affairs (MEA) has defended its actions, stating that the water release from the Dumbur Dam was an automatic response to the heavy inflow caused by intense rainfall.

According to the MEA, real-time flood data was shared with Bangladesh until the floods disrupted communication channels. Indian officials maintain that the crisis was an unavoidable consequence of natural forces and that they are not to blame for the resulting devastation.

Despite these explanations, Bangladesh remains skeptical. Officials in Dhaka argue that India’s handling of the dam and the subsequent communication breakdown significantly worsened the situation. They believe that India could have taken additional steps to minimize the impact of the water release, including better coordination with Bangladeshi authorities and ensuring contingency plans were in place for such emergencies.

The fact that communication between the two countries failed at a critical moment has raised alarm bells in Dhaka. This disruption has exposed serious flaws in the existing bilateral protocols, particularly in how emergency communications are managed. Whether due to inadequate preparedness or a lack of priority given to emergency communication, this failure has clearly exacerbated the disaster.

The flood crisis is not merely an environmental catastrophe; it carries significant political and diplomatic repercussions as well. The incident has strained the already fragile relations between India and Bangladesh, with public opinion in Bangladesh increasingly viewing India as an unreliable and negligent neighbor. This growing sentiment could have lasting effects on bilateral relations, particularly in areas such as water-sharing agreements, border management, and regional cooperation.

For years, Bangladesh has advocated for fair and equitable water-sharing agreements with India, given its reliance on trans-boundary rivers like the Ganges, Brahmaputra, and Teesta. The recent floods have reignited these concerns, with calls growing louder for a more transparent and accountable system for managing shared water resources.

In the wake of this disaster, there is a strong push within Bangladesh for a reevaluation of its water-sharing arrangements with India. Many are demanding stricter regulations and more effective safeguards to prevent a recurrence of such incidents. Additionally, there is increasing support for greater international involvement in overseeing the management of these critical resources, considering the potential for cross-border disputes.

While the political and diplomatic fallout is significant, the human toll of the floods is devastating. Millions of people have been displaced, with many losing their homes, livelihoods, and, tragically, loved ones. The affected regions are now facing severe shortages of food, clean water, and medical supplies, as relief efforts struggle to address the magnitude of the disaster.

The floods have also deepened existing vulnerabilities in Bangladesh’s rural areas, where poverty and inadequate infrastructure make communities particularly susceptible to natural disasters. The long-term impact of the floods will likely be felt for years, as Bangladesh undertakes the arduous task of rebuilding and recovering from this calamity.

As Bangladesh contends with the aftermath of the floods, it is evident that the country must bolster its disaster preparedness and resilience. This involves not only improving infrastructure and early warning systems but also ensuring that neighboring countries are held accountable for actions that have cross-border consequences.

Bangladesh must continue to assert its rights and interests in regional discussions, particularly concerning water management and disaster response. For India, this incident should serve as a critical reminder of the importance of maintaining transparent and reliable relationships with its neighbors. Effective communication, collaboration, and a genuine commitment to resolving shared challenges are essential to preventing similar disasters in the future.

 

Gaza: Prolonged and Inconclusive war

Israeli army officials have become increasingly exasperated with the prolonged and inconclusive war against Gaza over last eleven months. Their frustration is being compounded due to the mounting casualties of Israeli soldiers. 

The Gaza war may ultimately come to an end but the complicity of Western countries in Israel’s carnage in the Palestinian territory will never slide into oblivion.

Israeli Prime Minister Benjamin Netanyahu launched the war on Gaza on October 07, 2023 after Hamas carried out the Al-Aqsa Storm, a surprise military operation in southern Israel. More than 1,100 people were killed during the operation and about 250 others were taken captive. 

Netanyahu has repeatedly vowed to continue the war until achieving “total victory” over Hamas and “destroying” the Palestinian resistance movement. 

Despite receiving large amounts of weapons from Western countries, in particular the United States, the Netanyahu regime has failed to make good on its promise.  

Israel’s failures on the Gaza battlefield once again came to the fore after an army general acknowledged the regime’s inability to defeat Hamas. 

“For almost a year now, we have not been able to fully defeat even our smallest enemy,” Major General Israel Ziv told Israel’s Maariv news site.

Ziv, who previously headed the Israeli military’s operations directorate, added that there are still 20,000 Hamas fighters regrouping in Gaza.”

He admitted that Israel will not be able to get involved in a broad war with Iran and Lebanon’s Hezbollah, citing the regime’s inability to defeat Hamas. 

“Israel certainly cannot take on the task of fighting everyone when it can’t even close the simplest front,” he said.

Ziv’s statements echo a speech delivered by war minister Yoav Gallant earlier this month. 

Speaking during a closed-door hearing before a Knesset committee on August 12, Gallant dismissed Netanyahu’s “total victory” slogan as “nonsense” and “gibberish”.  

Gallant also said Netanyahu’s “total victory” goal amounts to a “beating of war drums” not backed up by actions.

On June 19, the Israeli military spokesman also disputed Netanyahu’s war aim of defeating Hamas. 

“The idea that it is possible to destroy Hamas, to make Hamas vanish — that is throwing sand in the eyes of the public,” Rear Adm. Daniel Hagari told Israel’s Channel 13. He added, “Hamas is an idea, deeply rooted in the hearts of the residents of Gaza”.

Netanyahu has been accused of derailing talks aimed at ending the Gaza war to keep himself in power. The premier believes that a permanent state of war will help him avoid accountability for failing to prevent the Al-Aqsa Storm. However, he remains under fire for failing to secure the release of the remaining captives in Gaza.

More than 100 of those who were taken captive on October 07 were freed following a swap deal with Hamas in November last year. Dozens still remain in Gaza. Dozens of others have lost their lives during Israeli strikes on the territory. 

Besides, the Gaza war has taken a heavy toll on the Israeli military which has put immense pressure on Netanyahu.  

According to Israeli media, more than 700 Israeli troops have died since October 07.

Despite Israel’s claims of dismantling Hamas, the group’s attacks still claim the lives of the regime’s soldiers on the battlefield. 

The Israeli army continues to strike residential buildings, schools and hospitals in Gaza under the pretext of targeting Hamas fighters in a bid to distract attention away from its failures. 

About 40,500 Palestinians including more than 16,000 children have been killed in Gaza since the start of the Gaza onslaught. 

Unfortunately, the United States and some of its Western allies continue to feed Israel’s war machine despite the rising civilian death toll. 

 

Media hype to jack up oil price

We are of the view that western media plays a role in keeping oil prices high to facilitate the fund managers to make quick buck. Media uses expressions like “fall in US strategic reserves”, “turmoil in Middle East and North Africa”, “imposition of sanctions on Russia”, “turmoil in Nigeria”, “Houthis attack oil tanker” and the latest is “oil fields shutdown in Libya”.

Oil prices slipped on Tuesday after rebounding more than 7% over the previous three sessions on supply concerns prompted by fears of widening Middle East conflict and a potential shutdown of most of Libya's oil fields.

After the jump in oil prices on the back of geopolitical risk in the Middle East and a production halt in Libya, market participants are now holding back to assess further developments.

The 7% rise in Brent and 7.6% rise in WTI in the previous three sessions bucked a broader downtrend since hitting its 2024 peak of US$91.17 in April. The downturn was driven by concern over global crude demand, particularly from China and through the summer, which is typically a peak demand period.

On Monday, authorities in the Libya's east, where most of its oilfields are located threatened to halting production and exports, after a flare-up in tensions over leadership of the country's central bank. Those fields are responsible for almost all the country's 1.17 million barrels per day of crude output.

The jump in Brent has primarily been driven by short-term supply worries at the same time the weak demand outlook, especially for diesel, has driven down refinery margins across the world, said Ole Hansen, head of commodity strategy at Saxo Bank.

"It highlights an oil market that, without a prolonged Libyan supply disruption, may struggle to move much higher, with the mid-80s potentially providing a ceiling for now," Hansen added.

There was no confirmation from the internationally recognized government in Tripoli or from National Oil Corp (NOC), which controls the country's oil resources.

Oil has also been supported by an escalation in conflict between Israel and Iran-backed Hezbollah, with a major exchange of missiles after the killing of a senior Hezbollah commander last month.

"Markets remain on edge as skirmishes between Israel and Hezbollah intensify," ANZ analysts said in a note

A top US general said on Monday that the danger of a broader war had eased somewhat but that an Iran strike on Israel remained a risk.

Hezbollah Hybrid War Capabilities

Lebanon’s Hezbollah has kept Israel on its toes since launching a barrage of missiles and drones that targeted multiple sites including a major military intelligence base near Tel Aviv at the weekend.

Reports suggest that the Hezbollah attack dubbed Arbaeen Operation caused significant damage in Israel. The Benjamin Netanyahu regime has been accused of trying to sweep the losses and casualties under the rug.

Hezbollah fired more than 300 Katyusha rockets and a large number of drones at Israel on Sunday morning. That was an initial response to the Israeli assassination of its senior military commander Fuad Shukr in Beirut on July 30.

Hezbollah Secretary General Sayyed Hassan Nasrallah said in a speech on Sunday evening that the main focus of the attack was the Glilot base north of Tel Aviv around 100 kilometers from Lebanon’s border. The facility is home to the Mossad intelligence service and the military intelligence group Unit 8200.

Nasrallah stressed that the attack struck deep into Israel in contrast to the resistance movement’s previous attacks, which largely hit northern Israel and the occupied Golan Heights.

The Arbaeen Operation dealt a devastating and crushing blow to Israel’s security and intelligence systems.

This is because Israel had been on high alert since killing Shukr and awaiting a retaliatory attack from Hezbollah. But despite taking advantage of Western satellite technology, the Netanyahu regime failed to deter the Hezbollah strike.  

Facts on the ground indicate that the Arbaeen Operation substantially eroded Israel’s deterrent power and widened gaps within the Israeli establishment which is still reeling from the shock of a surprise military operation (Al-Aqsa Storm) carried out by Hamas on October 07.

The Al-Aqsa Storm highlighted Israel’s military and intelligence failures and the Arbaeen Operation reminded the regime that it will have to brace for more tremendous shocks, this is just the tip of the iceberg. 

Israeli media have confirmed that an Israeli soldier was killed and two others were wounded on a Dvora-class patrol boat off the northern coast of occupied Palestine near Nahariya.

However, Israel claims they were hit by shrapnel from an Iron Dome interceptor missile as the regime tries to downplay the Hezbollah attack. 

Israel and Hezbollah have been trading fire since the day after the start of the Gaza war on October 07. 

Over the past months, Israel has threatened to launch an all-out war against Hezbollah if it does not stop strikes against the regime. 

Hezbollah has stressed that it will not stop its attacks as long as the Netanyahu regime continues the Gaza war which has so far claimed the lives of about 40,500 Palestinians. 

Although, Hezbollah did not use its strategic weapons during the Arbaeen Operation, Israel suffered a painful blow. 

Hence, in case of a full-blown conflict, the regime would have to wait for an apocalyptic scenario. 

Presently, Hezbollah is not only capable of hitting Israeli military sites on the ground but also its vessels which shows the Lebanese movement’s capability to wage a hybrid war against the regime. 

Israel failed to continue the 2006 war against Hezbollah for more than 34 days. The resistance movement’s military capabilities are currently incomparable with that year. 

Hezbollah is underpinned by its sophisticated arsenal and has increased its stockpile of missiles from 14,000 in 2006 to about 150,000. The movement has also developed precision-guided missiles and its drone programs. 

The number of Hezbollah fighters who are ready to join a possible war against Israel has exceeded 100,000, according to the Hezbollah secretary general. 

Israel is well aware of the military capabilities of Hezbollah. As a result, it only threatens the movement with a direct war as part of its psychological warfare. 
 

 

US supporting Israel in genocide in Gaza

It has been reiterated that Israel is busy in genocide in Gaza and killed over 40,000 people, mostly children and women since October 07, 2023. United States, instead of stopping unabated killing, has been supplying tons of lethal weapons to Israel. Now it is bringing in warships in the Middle East to protect Israel. It looks completely meaningless that US wants truce without asking Israel to stop the genocide.

US Defense Secretary Lloyd Austin ordered two American carrier strike groups to remain in the Middle East on Sunday after intense cross-border fire between Israel and Hezbollah overnight.

The decision was detailed in a Pentagon readout of Austin's call with his Israeli counterpart, Yoav Gallant.

During the conversation, Austin discussed "Israeli actions to defend against attacks by Lebanese Hezbollah" and reiterated Israel’s right to defend itself.

He also emphasized the United States' "ironclad resolve" to support Israel’s defense against threats from Iran and its regional partners and proxies, according to Pentagon spokesperson Maj. Gen. Pat Ryder.

"As part of that support, the Secretary has ordered the presence of two Carrier Strike Groups to remain in the region.

The Secretary also expressed support for completing negotiations on a cease-fire and hostage-release deal," Ryder said in a statement. He used a variant spelling for "Hezbollah."

The US had previously acknowledged the deployment of the USS Abraham Lincoln and the USS Theodore Roosevelt Carrier Strike Groups to the region.

As reported by Reuters, on Sunday, Lebanese Hezbollah announced that it had launched hundreds of rockets and drones deep into Israel overnight Saturday as part of the “first phase” of its response to Tel Aviv's assassination of senior commander Fouad Shukr late last month.

This announcement came shortly after the Israeli army carried out large-scale airstrikes in southern Lebanon, claiming the strikes were aimed at preventing Hezbollah from launching an attack.

 

Uncertainties plague oil market

According to the Seatrade Maritime News, energy analysts point to a range of uncertainties that could influence oil demand, supply and price in the months ahead.

Unexpectedly weak oil demand in China so far this year is one of the factors that OPEC Plus members will be considering when they meet at the next Joint Ministerial Monitoring Committee at the beginning of October.

But there are a number of other factors which could affect their decision on whether or not to ease the 2.2 million barrels a day (bpd) of production cuts that are currently in place.

These cuts were originally agreed in 2020 when COVID struck and oil demand fell sharply. These were steadily eased as the pandemic passed but restrictions on output were introduced again in April 2023, which will be the subject of discussion at the October meeting.

Softer Chinese demand is mirrored elsewhere as geopolitical tensions and slower growth affect many regions. Global oil demand growth has slowed down over recent quarters even as some OPEC Plus members, notably Russia, exceed OPEC Plus output quotas.

Shipbroker Gibson notes that OPEC Plus recently cut oil demand growth expectations to 2.11 million bpd this year, but so far this increase has not materialized.

Further downward revisions to projections may be required and the issue casts doubt on the cartel’s forecast of a 1.78 million bpd demand increase in 2025.

The broker notes that the International Energy Agency has a more moderate demand growth forecast of 0.95 million bpd for next year.

Meanwhile, Poten notes that more non-OPEC production has come on stream since the pandemic, with the United States, Canada, Guyana, and Brazil increasing output and eating into OPEC’s share.

More non-OPEC crude will hit the market in 2025, as the International Energy Agency forecasts that supply is likely to rise by 1.75 million bpd, significantly more than likely demand growth of 1.0 million bpd.

Owners of smaller tankers will be closely watching developments in these non-OPEC countries where output is rising.

For VLCC owners, what happens in China is the most important factor because of the long-haul nature of the trade.

But the strategy that OPEC Plus members adopt at the October meeting is a key factor too.

If the cartel members decide to ease the present production restrictions, the process will take place gradually over time.

Poten observed, “If they start to roll back their production cuts, it will be very slow and in small increments, so as not to flood the market and undermine oil prices.”

Airlines cancel flights to Israel

Ten foreign airlines canceled their flights to Israel on Sunday amid escalating cross-border tensions with the Lebanese group Hezbollah.

According to Israeli public broadcaster KAN, major carriers, including Air France and the Dutch airline Transavia, have suspended their operations in Israel.

Other airlines that canceled flights include Hungary's Wizz Air, Malta-based Corendon, Ethiopian Airlines, and Greece's Aegean Airlines and Universal Airlines.

Air France, which canceled its flights between Paris and Tel Aviv, was one of the few major international airlines operating in Israel until now.

Since late July, 20 international airlines have canceled their flights to Israel, driven by growing concerns over a potential regional war in the Middle East.

On Sunday, Israeli warplanes launched over 40 airstrikes on southern Lebanon, marking the most severe attack since cross-border clashes with Hezbollah began on October 08, 2023. The Israeli army stated that the strikes aimed to prevent an impending Hezbollah attack.

In response, Hezbollah claimed it had launched hundreds of missiles and drones deep into Israel as part of the "first phase" of its retaliation for last month’s assassination of its commander Fouad Shukr in Beirut.

Since October 08, 2023, Hezbollah has engaged in daily exchanges of fire with the Israeli army across the Lebanese-Israeli border, resulting in hundreds of casualties, mostly on the Lebanese side.

Kamala Harris and her heap of lies

All week long, the US citizens watched as the true base of the Democratic Party – billionaires, celebrities, national security figureheads and moderate Republicans – repeatedly assured us that Kamala Harris will be a different kind of president. A president of “joy.” But many found little room for joy in her speech Thursday night.

Instead, it revealed a great deal about what we can expect if Kamala becomes president – and none of it is good.

In a speech that could have easily been delivered by Joe Biden himself, Kamala promised to:

Sign Biden’s inhumane, militarized “bipartisan border bill” with 80% of the funding allocated to hardening border security and doubling the number of border patrol agents.

“Ensure America always has the strongest, most lethal fighting force in the world” with unchecked resources for the Pentagon to continue waging “wars around the world”.

Unconditionally supply Israel with endless weapons, as she repeated Israel’s discredited propaganda around the October 07 attacks and pointedly ignored the widespread reports of Israeli soldiers using sexual violence, physical and psychological torture against illegally incarcerated Palestinian prisoners.

Kamala absurdly claimed that she and Biden are “working around the clock” to secure a ceasefire for Gaza – even as they’ve authorized another US$23 billion in arms for Israel in August alone.

Now we learn that the Joe-Kamala administration has appointed Mira Resnick, perhaps the most hands-on State Department official involved in speed-running weapons to Israel since October 07, to replace Andrew Miller – the 1st official to resign in protest over Gaza.

Kamala’s heap of lies delivered on Thursday night firmly established that nothing will fundamentally change.

Kamala made it clear that she intends to continue this reckless path of capitalistic exploitation and global militarism, even fanning the flames with China and Iran as tens of thousands of the party faithful waved signs and shouted “USA! USA!”

The world finds no joy in any of this.

There are material conditions that must be urgently addressed for this country to meet the basic needs of its citizens and take the citizens off this death march into World War III and climate collapse. None of those policy solutions were present in her speech.

Instead citizens were promised more of the same. And much like Biden before her, that may prove to be the one promise that Kamala Harris keeps.

Kamala has shown her true colors, and we have a prudent choice to make this November.

There has to be a campaign to the White House this November that could set the US citizens on a radically different course – one that ends the genocide in Gaza and implement an immediate arms embargo on Israel.

There has to be a campaign with the credibility to address the climate emergency with the urgency it demands. There has to be a campaign with a radically transformative economic vision that will lift millions out of poverty and build a society free of injustice, inequity, hunger, and want.

There has to be a campaign that could challenge the empire both at home and abroad. In just over two months, Americans will have to make their voice heard at the ballot box.

 

Global leaders congratulate Abbas Araqchi

Several prominent international figures, including the European Union's foreign policy chief Josep Borrell, as well as the foreign ministers of Germany and Iraq, have extended their congratulations to Abbas Araqchi on his appointment as Iran's Minister of Foreign Affairs.

Araqchi, known for his previous role as a nuclear negotiator, was appointed by President Masoud Pezeshkian and successfully secured a vote of confidence from the Iranian parliament, receiving 247 out of 288 votes.

In a phone call on Thursday, Borrell conveyed his congratulations to Araqchi, expressing optimism that political discussions and consultations between Iran and the European Union would not only continue but also expand under Iran's new government. 

The two officials also discussed ongoing negotiations aimed at lifting international sanctions against Iran and addressed recent developments in the Israeli-Palestinian conflict, particularly the situation in Gaza.

Araqchi announced Iran's willingness to manage tensions with the United States and restore relations with European nations, contingent upon these countries ceasing what he described as hostile actions against the Islamic Republic. 

He emphasized that a key priority for the new administration would be the removal of sanctions, which would help normalize Iran's trade relations globally. 

Araqchi reiterated that reviving the 2015 nuclear deal remains a central objective, provided that Western nations show a willingness to engage constructively.

The signing of the 2015 nuclear agreement, also known as the Joint Comprehensive Plan of Action (JCPOA), with six world powers showcased Iran's commitment to demonstrating the peaceful nature of its nuclear program. However, the unilateral withdrawal of the United States from the JCPOA in May 2018 and the subsequent re-imposition of sanctions against Tehran have cast uncertainty over the future of the agreement.

German Foreign Minister Annalena Baerbock also congratulated Araqchi, expressing hope that Germany and Iran could deepen their bilateral relations by overcoming existing challenges. 

During their conversation, Araqchi stressed the importance of mutual respect and focusing on common interests to strengthen ties between the two nations. 

The two diplomats also exchanged views on regional and international issues, emphasizing their shared commitment to resolving current problems through dialogue.

In another diplomatic outreach, Foreign Secretary of the United Kingdom David Lammy extended his congratulations to Araqchi on his recent appointment as Iran’s foreign minister. 

During a phone call, Lammy expressed that the formation of Iran’s 14th government presents a fresh opportunity to enhance diplomatic consultations between the United Kingdom and the Islamic Republic of Iran. 

Lammy also addressed the ongoing conflict in Gaza, urging Iran to play a constructive role in de-escalating tensions in the region. He emphasized the importance of dialogue and diplomatic efforts in achieving stability, highlighting the potential for cooperation in easing the humanitarian crisis.

Responding to his British counterpart, Araqchi acknowledged the ups and downs in bilateral relations over the years. He reiterated that while Iran does not seek to widen the conflict or increase tensions, it will not relinquish its right to respond to the "criminal and terrorist actions" of the Zionist regime.

The conversation between the two ministers also covered other areas of mutual interest, including the ongoing negotiations concerning the lifting of sanctions on Iran. Both sides reaffirmed their commitment to continue these diplomatic consultations, signaling a desire for constructive engagement moving forward.

Franch Foreign Minister, Stéphane Séjourné, also reached out to Araqchi in a separate phone call to offer his congratulations. 

Séjourné conveyed France’s readiness to continue diplomatic consultations with Iran, focusing on both bilateral relations and broader regional and international issues. 

He highlighted the ongoing diplomatic efforts aimed at securing a ceasefire in the Gaza conflict, stressing the need for dialogue with all involved parties to reduce tensions and achieve lasting peace.

Araqchi expressed appreciation for the French foreign minister’s congratulations and emphasized the longstanding historical relationship between Iran and France. He reiterated Tehran’s willingness to engage in constructive dialogue to expand cooperation between the two nations.

He urged France and other Western countries to focus on holding the Zionist regime accountable for these actions to prevent further escalation of the conflict.

The phone call between Araqchi and Séjourné also included discussions on other topics of mutual interest, such as consular issues, with both ministers agreeing on the importance of continued dialogue to address these concerns.

Iraqi Foreign Minister Fuad Mohammed Hussein was among the other leaders who reached out to congratulate Araqchi. 

He expressed hope that Iran and Iraq would continue their close cooperation on bilateral, regional, and international issues. 

Hussein also conveyed an invitation from Iraqi Prime Minister Mohammed Shia' Al Sudani to President Pezeshkian to visit Iraq. 

Araqchi, in turn, highlighted the new Iranian government's commitment to deepening relations with its neighboring countries, particularly Iraq.

Araqchi received congratulations from Ararat Mirzoyan, the Armenian Foreign Minister, who expressed his country’s commitment to expanding relations with Iran. 

The two officials discussed issues related to the agenda of bilateral relations between Armenia and Iran, emphasizing the readiness of both sides to make continuous efforts towards further strengthening of friendly ties and strong partnership in areas of mutual interest. Reference was made to upcoming programs.

They also discussed the importance of supporting Armenia’s territorial integrity and the ongoing regional developments. 

Lebanese Foreign Minister Abdallah Bou Habib offered his congratulations, expressing hope for continued cooperation between Iran and Lebanon, especially in resisting Israeli aggression.

In response, Iranian foreign minister thanked Bou Habib for his congratulations and emphasized his desire for fruitful collaboration to advance the interests of both the Lebanese and Iranian people, as well as the broader region. 

Araqchi confirmed his intention to visit Lebanon soon and expressed eagerness to host the Lebanese Foreign Minister in Tehran at the earliest opportunity.

Syrian Foreign Minister Faisal Mekdad joined in the congratulations, reaffirming Syria's dedication to strengthening strategic relations with Iran. 

Both Araqchi and Mekdad emphasized the importance of ongoing consultations and coordination between their countries in the face of regional challenges, particularly regarding Israeli actions in the region.

These diplomatic engagements highlight the broad international response to Araqchi’s appointment, reflecting both the opportunities and challenges that lie ahead for Iran's foreign policy under his leadership.

 

Why Gwadar airport opening was postponed?

According to media reports, Pakistan has postponed the opening of a nearly US$250 million airport over security fears, dealing another blow to efforts to boost Chinese investment in its crisis-hit economy.

Prime Minister Shehbaz Sharif was due to perform the inauguration of New Gwadar International Airport (NGIA), close to a port at the center of the US$50 billion China Pakistan Economic Corridor (CPEC).

The planned opening on August 14 — Pakistan’s Independence Day — was suddenly halted over what local officials said were security concerns after mass protests brought southwestern Gwadar to a near standstill this month.

No new opening date has been announced for the US$246 million China funded project, which got off the ground following a grant deal with Beijing in 2015.

“All the required work and prerequisite arrangements on the New Gwadar airport have been completed and it’s ready for flight operations,” a government official familiar with the situation told Nikkei on condition of anonymity.

The delayed opening — after an initial postponement last year — comes amid concerns that lower-than-expected demand for flights into the region, beset by deadly militant attacks and a separatist insurgency, would quickly turn it into a white elephant.

The single-runway airport, about 45 kilometers from Chinese-controlled Gwadar port, is spread over 4,300 acres (1,740 hectares) and can handle large-body planes like the Airbus A380. That will make it the country’s largest airport by size, ahead of Islamabad’s gateway.

Gwadar’s faltering efforts to kick off as a major hub have led to just three weekly scheduled flights to a smaller airport in the area from Pakistan’s commercial capital Karachi — and some of those trips are routinely canceled.

Even with Chinese airlines expected to start running direct flights once the new airport opens, analysts warn there’s little chance of a surge in demand.

“The inauguration of NGIA is symbolic in nature because it is not commercially viable for any airline in the short term,” Afsar Malik, an expert in airline economics, told Nikkei Asia.

Successive Pakistani governments have claimed that the multibillion-dollar investment framework with China would help turn Gwadar into the next Singapore.

The country’s prime minister ordered that half of all sea cargo for government agencies, originally destined for southern Karachi, instead be unloaded at Gwadar’s port — highlighting its underuse.

Some fear the area’s newest transport hub will become the next Mattala Rajapaksa International, a large Sri Lankan airport built with a Chinese loan that’s been dubbed the “world’s emptiest international airport” due to a lack of flights.

“Vanity projects are not new for the Chinese, they have built similar projects back home which have limited use,” said Mohammad Shoaib, an assistant professor at Quaid-i-Azam University Islamabad. “The Chinese are biding their time and the NGIA can be of use once Gwadar kicks off. … In the meantime, NGIA and old Gwadar airport can be used by other support missions from China.”

This month, Gwadar saw huge protests staged by groups pushing for civil, political and economic rights for locals in resource-rich Baluchistan province, home to the China-funded port.

Beijing has grown increasingly wary about future investment after its nationals working in Pakistan were targeted in a series of deadly attacks. The country is grappling with a rise in militant activity ranging from Islamists aiming to topple the government to separatists seeking to carve out a homeland in Baluchistan.

Islamabad, already struggling with a shattered economy, has pledged to boost security for workers and, in June, said it would launch fresh counterterror operations nationwide.

Despite hopes the new airport will draw more Chinese money, some are not convinced it would mean much for a local population of mostly poor fishermen.

“Air travel is quite expensive for the majority of people in Gwadar,” said Mariyam Suleman, a local now based in Canada. “The airport is more to accommodate the government officials, diplomats and international delegations rather than the local population.”

 

Yuan attains record share in global payments

According to the South China Morning Post, share of Chinese yuan in global payments hit a record high in July 2024, a milestone in Beijing’s efforts to fend off the hegemony of the US dollar and increase its say in the global monetary system.

The yuan kept its fourth-place spot in the ranking of payment currencies last month, with its share of global transactions rising to 4.74% from 4.61% in June. The increase was observed in data from the Society for Worldwide Interbank Financial Telecommunication (Swift), the world’s largest interbank messaging service.

It was the ninth consecutive month the Chinese currency has stayed above 4%.

Swift payment data is a major indicator for the relative status of international currencies. Other metrics include frequency of use in foreign exchange markets, commodity trading and governments’ foreign reserves.

The data shows the value of payments settled in yuan increased by 13.4% as compared to June, outpacing the 10.3% growth recorded across all currencies.

The world’s second-largest economy first encouraged the use of its currency in international trade settlements in 2009, part of its response to the global financial crisis.

Yuan usage has been on the rise since Russia was ejected from the US dollar system after its invasion of Ukraine in February 2022. A vast majority of China and Russia’s US$240 billion trade last year was settled in either yuan or roubles.

Beijing’s policymakers have continued to promote the yuan as an alternative currency in international trade, as the perceived weaponisation of the US dollar against Russia has sent chills through emerging markets. In response, countries such as Brazil have expressed a greater openness to accepting Chinese currency.

“Despite depreciation pressures, the yuan’s internationalization has advanced this year, with its overseas use on the rise,” said Ding Shuang, chief Greater China economist at Standard Chartered Bank.

Standard Chartered’s renminbi globalization index, which also tracks the yuan’s international use, continued to grow this year after a strong 33 per cent% increase in 2023 in alignment with Swift data.

The yuan surpassed the Japanese yen as the world’s fourth most active currency in global payments in November 2023, following the US dollar, euro and pound sterling.

In July 2024, the US dollar accounted for 47.8% of global payments, followed by the euro at 22.5% and the pound sterling at 7.0%, Swift data showed.

The yuan also secured the No. 2 position in the trade finance market with a 6% stake, higher than the euro’s 5.8% and second to the US dollar’s considerable share of 83.2%.

As the Global South looks to avoid overreliance on the US dollar amid rising geopolitical tensions, Ding said, the yuan is well-positioned to expand its global role.

But he also pointed out the inherent difficulty of further breakthroughs after the yuan’s internationalization reaches a certain level, considering the state of the country’s capital controls.

“To strengthen confidence in the yuan, the currency’s exchange rate but also the openness of cross-border capital flow must play a role,” he said, stressing the latter was not being prioritized sufficiently by Beijing.

“Currently, China is more focused on stability amid growing external uncertainties. But in the long term, Beijing will need to further relax its controls over capital accounts.”

 

Ships carrying Israeli cargo being targeted

An oil tanker has been forced to change route after coming under attack by Yemen’s Ansarallah in the Red Sea. The Greek-flagged SOUNION has been accused of violating the Ansarullah decree banning entry to the ports of occupied Palestine.”

In a televised statement, Yahya Sare’e said the oil tanker “belongs to a company that has ties with the Israeli enemy”. 

The ship was accurately and directly struck while sailing in the Red Sea and is at risk of sinking, according to the senior Yemeni military official. 

Global maritime monitors say the SOUNION was targeted by multiple projectiles off Yemen’s port city of Hodeidah. 

The European Union’s naval forces in the region, deployed to prevent Ansarullah’s operations, said the tanker was carrying 150,000 tons of crude oil, and the attack from Yemen led to the loss of engine power while causing a fire on board. 

The SOUNION is now reportedly anchored near Eritrea amid plans to move it to a safer destination for checks and repairs. 

None of the crew members who were evacuated have been harmed. 

Sare’e also declared that Ansarullah staged a second operation, which targeted the SW NORTH WIND I, reiterating that this vessel also belongs to a company that “deals with the Israeli enemy” and “violated the decision to ban entry to the ports of occupied Palestine.” 

This ship, too, was directly and accurately hit while sailing in the Gulf of Aden and the Red Sea, the Ansarullah military spokesman said. 

Maritime monitors say the SW NORTH WIND I suffered damage after an encounter with an uncrewed vessel 57 nautical miles south of Yemen’s port of Aden. 

Ansarullah said the attacks in the Aden Gulf and the Red Sea were carried out with unmanned boats, ballistic missiles, winged missiles, and drones. 

“Our operations will continue until the aggression ceases and the siege on Gaza is lifted, and we will continue to prevent all ships heading to Israel until the blockade on the Gaza Strip is lifted,” Ansarullah added. 

Since November, the Sana’a government forces have carried out scores of attacks against Israeli and Israeli-affiliated vessels in the Red Sea and beyond. 

The arrival of American and British destroyers in the region has failed to deter the Yemeni forces. Bombing attacks by United States and British forces have seen ships and warships belonging to America and Britain also come under attack. 

Ansarullah has waged more than 184 attacks against Israeli, American and British ships in solidarity with Gaza. 

The Sana’a government has informed mediators that its operations will end once a ceasefire is reached in the Gaza Strip and the blockade on the enclave is lifted. 

According to experts, Ansarullah’s military actions have proven very effective amid a significant drop in the number of US and British ships, and ships bound for Israeli ports in the Red Sea. 

The presence of Western warships and the regular bombings on Yemen by America and Britain have failed to weaken or stop Ansarullah’s maritime ban on ships docking at Israeli ports. 

Analysts have said the US-led military failure to end the Red Sea maritime disruption for Israeli-linked ships is all the more embarrassing for the United States, considering that Ansarullah has been subject to almost a decade of war. 

On Friday, Yemenis heeded a call by Ansarullah leader, Abdul-Malik al-Houthi, in a remarkable show of support. People flooded the streets of the capital as well as the governates of Sa’ada, Hodeidah, Hajja, Dhamar, Amran, al-Bayda, Rima, al-Dhalea, Lahij, Ibb, al-Mahwit, al-Jawf and Marib with million-man marches voicing their approval of the government’s policies on Palestine. 

The huge weekly turnout on Fridays, across Yemen has led critics to accuse other Arab states of failing to organize a similar level of street protests against the Israeli massacres in the occupied Palestinian territories. 

The popular domestic support in Yemen has also helped strengthen the determination of Ansarullah to continue its military operations in support of the people and resistance in Gaza. 

 

Has United State become a proxy of Israel?

In our opinion Israel has become a monster that United States, European Union, China, Russia, France, Britain, United Nations and even International Court of Justice have failed to control. The resistance forces are told not to react, else it will be terrible destruction throughout the Arabian Peninsula. It seems certain that United State has become a proxy of Israel and all others have gone impotent.

According to media reports, Israeli forces have reduced the designated "safe humanitarian zones" within the Gaza Strip to mere rubble, leaving only 9.5% of the territory as areas for displaced civilians to seek refuge.

During Israel's ground invasion of Gaza, which began in early November 2023, Israeli forces pushed hundreds of thousands of civilians from northern to southern Gaza, declaring these areas as "safe humanitarian zones."

Initially, these zones spanned 230 square kilometers (89 square miles) or 63% of Gaza's total area, including vital agricultural, commercial, and service facilities.

As the Israeli military offensives continued, these zones were drastically reduced. By early December 2023, after Israel's incursion into Khan Younis, the zones shrank to 140 square kilometers (54 square miles), representing 38.3% of Gaza's area.

The size further decreased in May 2024, during the incursion into Rafah, down to 79 square kilometers (30.5 square miles) or 20% of the area.

By mid-June 2024, the so-called safe zones were reduced to just 60 square kilometers (23 square miles), representing 16.4% of Gaza.

By mid-July 2024, the area deemed "safe" was further reduced to 48 square kilometers (18.5 square miles), or 13.15% of Gaza's total area.

Finally, as of August 2024, the "safe humanitarian zones" have been diminished to just 35 square kilometers (13.5 square miles), accounting for only 9.5% of Gaza's total area.

This remaining area includes only about 3.5% of agricultural, service, and commercial areas, severely limiting safe havens for civilians.

This systematic destruction of the designated safe zones has intensified the humanitarian crisis in Gaza, leaving civilians with fewer places to escape the ongoing violence.

The continued Israeli offensive on Gaza, which began after October 07, has led to over 40,200 Palestinian deaths, primarily women and children, and more than 93,000 injuries.

The region faces a dire shortage of food, clean water, and medicine due to an ongoing blockade, exacerbating the humanitarian catastrophe.

Israel faces proceedings for the genocide at the International Court of Justice, which has ordered a halt to military operations in the southern city of Rafah, where over one million Palestinians had sought refuge before the area was invaded on May 06, 2024