Israel’s Security Paradox: Strength Without Psychological Closure

Benjamin Netanyahu’s long political dominance has coincided with one of the most turbulent phases in Israel’s modern security history. For his supporters, he represents strategic clarity in a hostile region. For critics, his era reflects the entrenchment of a permanent conflict mindset. Both interpretations, in different ways, touch the same underlying reality - Israel’s security condition today is defined as much by perception as by power.

Militarily, Israel remains one of the most capable states in the Middle East. Its intelligence infrastructure, air power, and multi-layered defence systems have significantly strengthened deterrence. Several adversaries are either weakened, fragmented, or operating under constraints not seen in previous decades. From a purely conventional standpoint, Israel’s strategic position appears more secure than in many earlier phases of its history.

Yet this is only one side of the equation. On the ground, security is not experienced in abstract balances of power. It is experienced through sirens, shelters, alerts, and the unpredictability of escalation. For civilians—particularly children growing up amid periodic conflict—security becomes a lived rhythm rather than a stable condition. Even when attacks are intercepted or contained, the psychological imprint of uncertainty remains. This is where Israel’s central paradox emerges - growing military strength has not translated into a proportional sense of psychological security.

The reason lies in the changing nature of conflict. Traditional wars between defined states have increasingly been replaced by asymmetric threats—rockets, proxy forces, cross-border raids, and regional instability. These forms of confrontation do not require parity to create disruption; they require only unpredictability. As a result, even a militarily dominant state can remain socially alert, frequently mobilized, and psychologically exposed.

Within Israeli society, this produces a dual perception. One strand believes Israel is stronger than ever, capable of managing multiple fronts simultaneously. Another strand, equally present, sees a country that remains encircled not necessarily by conventional armies, but by persistent and evolving threats that rarely disappear entirely.

Netanyahu’s political approach has reinforced this condition of “managed insecurity”—a doctrine in which deterrence is maintained not by eliminating threats, but by continuously containing them. This may strengthen strategic positioning in the short term, but it also prevents a full transition from conflict management to post-conflict normalcy.

The result is a society that oscillates between confidence and anxiety. Military superiority coexists with civilian vulnerability. Tactical successes coexist with strategic uncertainty. And periods of calm are often interpreted not as resolution, but as interludes between escalations.

The question is not whether Israelis believe their enemies are weaker or stronger. The more accurate question is whether they believe threats can ever be fully removed from their horizon.

For many, the answer remains uncertain. And it is in that uncertainty—more than in battlefield outcomes—that Israel’s modern security condition is ultimately defined.

Donald Trump and Corruption Debate

Few political figures in modern American history have generated as much controversy as Donald Trump. His supporters view him as a disruptive outsider who challenged entrenched political interests, while his critics see him as a president who blurred the boundaries between public office and private gain. The recent claim by The Independent that Trump has taken corruption to new highs reflects a debate that has become central to American politics.

The real story may not be whether Donald Trump has taken corruption to new heights. The real story is that America itself can no longer agree on what corruption looks like. In a deeply polarized nation, the same act is seen by one side as abuse of power and by the other as political persecution. That may be the most troubling development of all.

 Those who agree with the criticism argue that Trump’s presidency has been marked by an unprecedented overlap between political power and personal business interests. They point to controversies surrounding family business ventures, cryptocurrency projects, investment activities, and legal settlements that allegedly benefited Trump and those close to him. Critics contend that even when actions remain within the letter of the law, they can still raise serious ethical questions. In their view, public office should not create opportunities for private enrichment, nor should it create the perception that official decisions could be influenced by personal financial considerations. To these observers, the issue is not simply legality but the erosion of public trust in government institutions.

Supporters of Trump offer a very different interpretation. They argue that accusations of corruption have followed him since he entered politics and are often driven more by political hostility than objective analysis. They note that many allegations have not resulted in criminal convictions and that critics frequently present disputed claims as established facts. From this perspective, Trump’s business background inevitably creates scrutiny that career politicians rarely face. His defenders also argue that many of the policies he pursued were aimed at fulfilling campaign promises rather than advancing personal interests. They see the corruption narrative as part of a broader effort by political opponents and sections of the media to delegitimize his presidency.

The disagreement ultimately reflects different understandings of what constitutes corruption. For critics, the appearance of conflicts of interest can be as damaging as proven wrongdoing because public confidence depends on trust and transparency. For supporters, corruption should be defined more narrowly and require clear evidence of illegal conduct rather than assumptions based on political disagreements or ethical concerns.

What is beyond dispute is that the debate has become increasingly polarized. Americans are often evaluating the same events through entirely different lenses, reaching sharply different conclusions. To one side, Trump represents a dangerous fusion of political authority and private interests. To the other, he represents a target of relentless political and media opposition.

History will ultimately determine which interpretation carries greater weight. For now, the controversy serves as a reminder that in modern politics, perceptions of integrity can be almost as consequential as the facts themselves.

Ukraine War: Bloodshed, Profits and Hypocrisy

Nearly four years after the first shots were fired, the Ukraine-Russia war stands as one of the greatest geopolitical tragedies of the 21st century. Hundreds of thousands have been killed, millions displaced, entire cities devastated, and critical infrastructure reduced to rubble. Despite this immense human suffering, there is little evidence that those with the power to end the conflict are genuinely interested in doing so.

What is increasingly difficult to ignore is that this war has long ceased to be merely a conflict between Ukraine and Russia. It has evolved into a US-backed proxy war aimed at weakening Russia strategically, economically, and politically. Ukraine has become the battlefield, while Washington and its allies continue to provide weapons, intelligence, and financial support that sustain a conflict with no visible endgame.

The official rhetoric revolves around democracy, sovereignty, and international law. However, the reality on the ground tells a different story. Four years of warfare have not delivered peace, stability, or security. Instead, they have produced death, destruction, and a humanitarian catastrophe on a scale that should shame the international community.

The greatest victims are ordinary Ukrainians and Russians. Young men continue to die in trenches and on battlefields. Families remain separated. Millions live under constant uncertainty. Entire generations are being sacrificed in pursuit of geopolitical objectives that have little to do with the welfare of those paying the highest price.

At the same time, clear beneficiaries have emerged. Arms manufacturers continue to secure lucrative contracts. Defense spending has surged across the Western world. Energy markets have been reshaped, creating opportunities for major oil and gas interests. While soldiers fight and civilians suffer, corporate profits continue to grow.

Equally disturbing is the failure of international institutions to bring meaningful pressure for a negotiated settlement. The United Nations has proven largely powerless. The NATO remains focused on military support. The European Union continues to deepen its involvement while offering no realistic roadmap to peace. Their actions may differ, but the outcome remains the same: the war goes on.

Four years later, the scorecard is brutally simple. Ukraine and Russia count their dead. Cities count their ruins. Families count their losses. As against these, defense contractors count their profits and geopolitical strategists congratulate themselves on another chapter of great-power rivalry.

History may ultimately judge this conflict not as a triumph of principle, but as a devastating example of how powerful nations can sustain war in the name of noble ideals while ordinary people bear the brunt.

When Rules Apply Only to Adversaries

The United States frequently speaks of a rules-based international order. Yet recent events involving Iran raise a fundamental question: are these truly universal rules, or merely rules that apply to America's adversaries?

The contradiction is becoming increasingly difficult to ignore. When Washington launches military strikes, the action is described as self-defense, deterrence, or a contribution to regional security. When Iran retaliates, the same commentators who justified the initial strike suddenly discover the dangers of escalation. Cause and effect disappear from the discussion. The response becomes the story, while the action that provoked it is conveniently forgotten.

The ceasefire narrative offers an even clearer example. If a ceasefire is violated, responsibility should logically rest with whoever broke it first. Instead, the international audience is often presented with a distorted version of events in which retaliation becomes the principal crime and the preceding action fades into the background. Such a narrative does not uphold peace; it merely protects one side from scrutiny.

An equally revealing contradiction surrounds American military bases in Arab countries. These installations are not humanitarian centers or cultural exchanges. They exist for one purpose: military power projection. They provide logistical support, intelligence capabilities, and operational platforms for military action throughout the region.

Yet a curious transformation occurs whenever these facilities come under threat. The military base suddenly ceases to be viewed as a military asset and is instead portrayed solely as the territory of a friendly Arab state. When attacks are launched from the base, it is considered a legitimate instrument of American strategy. When retaliation targets the same facility, it is presented as an attack on an innocent host nation.

Such arguments are not merely inconsistent; these expose the selective logic that increasingly defines international discourse.

The uncomfortable reality is that Washington's greatest challenge today is not Iran, Russia, or China. It is the widening gap between the principles it advocates and the policies it pursues. Power can compel compliance, but it cannot manufacture credibility. Every time one standard is applied to allies and another to adversaries, the claim of defending a rules-based order becomes less convincing.

The world is not questioning America's power. It is questioning whether the rules Washington promotes are genuinely universal or simply another instrument of that power.

US and Oil Producers: Always in Confrontation

A striking pattern runs through modern geopolitics. Over the past three decades, many of the nations that have found themselves in Washington’s crosshairs share one defining characteristic: they are major producers of oil and gas.

The historical record is difficult to ignore. Iraq was invaded and dismantled under a pretext of weapons of mass destruction that never existed. Libya, once Africa’s most prosperous energy producer, was reduced to a fragmented state following Western military intervention. Syria became a prolonged proxy theater where strategic energy routes carried immense weight. Meanwhile, Venezuela—holding some of the world’s largest proven crude reserves—has endured years of crippling economic sanctions.

The containment list does not end there. Russia and Iran, two global energy titans, remain subject to unprecedented, extensive sanctions regimes. While each conflict features its own local political and security dimensions, the recurring intersection between energy wealth and geopolitical confrontation points to a deliberate strategic template rather than mere coincidence.

Iran has become the latest focal point of this enduring struggle. Recent military escalations against Iranian targets and the heightened friction surrounding the Strait of Hormuz have once again exposed the raw mechanics of global power politics. Officially, Washington and its allies frame these interventions as efforts to secure maritime routes, combat terrorism, or prevent nuclear proliferation. Critics, however, see a much broader, calculated agenda: squeezing regional producers to assert strategic dominance over the world's most critical energy corridor.

This raises uncomfortable economic questions. If market stability and uninterrupted energy flows are the ultimate objectives, why does the Arabian Peninsula repeatedly find itself pushed to the brink of conflict? The unsettling answer is that instability itself creates strategic leverage. A region under perpetual tension remains dependent on external security architecture, keeping energy markets highly vulnerable to artificial supply shocks.

For a superpower seeking to control global pricing power and enforce political alignment, a peaceful, independent, and smoothly operating Strait of Hormuz may simply not align with the broader geopolitical playbook.

PSX benchmark index up 6.7%MoM

According to a report by Taurus Securities, at the end of May 2026, the benchmark index of Pakistan Stock Exchange (PSX) closed at 173,963, up 10,969 points or 6.7%MoM. Net FIPI outflow was recorded at US$17.08 million. Average daily traded volume was slightly more than 705 million shares, down 23%MoM. The average traded value also declined by 11%MoM to PKR36.8 billion. Nevertheless, overall activity remained dull in terms of volume and value.

Overall, mixed sentiments were witnessed at the bourse during the month. The earlier half was dominated by bearish sentiment, cautious activity and profit-taking. However, some recovery was seen in the latter half. Sentiments also got a boost from multiple IPOs in May’26 like Wahdat Poultry and Sitara Petroleum.

Key triggers for the market during the month under review included: 1) Pakistan stepped up mediator role as US-Iran draw closer to a deal; while global energy prices remain volatile as supplies remain affected, 2) IMF Executive Board approved third EFF review and disbursement of US$1.3 billion. The IMF adds 11 new structural conditions for future, 3) Pakistan issued Panda Bonds at a competitive 2.5% coupon, 4) Pakistan committed to 2% Primary Surplus for the next fiscal year, 5) LNG supplies remained disrupted due to the Middle-East conflict, 6) April 2026 balance of payments came under pressure on a sequential basis, as oil import bill spiked due to the US-Israel war on Iran and remittances also declined, 7) Headline inflation in April 2026 was reported at 10.9% and May 2026 NCPI is expected to rise to 12.4%, 8) the GoP increased petroleum levy to bridge revenue short-fall, 9) Pakistan auctioned offshore exploration blocks after 20 year gap, and 10) Internal security situation became fragile with fresh terrorist attacks in KP and Baluchistan.

Ceasefire Diplomacy or Managed Conflict?

Every morning brings fresh reports suggesting that the United States and Iran are inching closer to a ceasefire understanding. Yet, by evening, contradictory statements emerge, once again clouding the picture with uncertainty and strategic ambiguity. The pattern has now become too repetitive to ignore. It increasingly appears that both Washington and Tehran are buying time rather than genuinely pursuing peace, while carefully concealing their actual strategic objectives.

The initial justification for the US-Israel military campaign against Iran centered on Tehran’s refusal to accept Washington’s conditions regarding its nuclear and missile programs. However, the conflict narrative now appears to be evolving. The focus increasingly seems linked to reshaping the political architecture of the Middle East through expansion of the Abraham Accords, effectively compelling key Muslim countries, including Saudi Arabia, toward formal recognition of Israel.

Simultaneously, the continued tension surrounding the Strait of Hormuz raises another critical question. Despite repeated calls for de-escalation, there appears to be little urgency in Washington to fully restore normal maritime stability in the region.

Such instability serves multiple strategic purposes for the United States. It constrains oil exports from Gulf producers, complicates China’s energy security calculations, and strengthens Washington’s leverage in global energy markets by enhancing demand for American oil and gas supplies.

The domestic political environment inside the United States also adds another dimension. Repeated but unsuccessful attempts to politically weaken or impeach Donald Trump suggest that influential power centers may still consider him indispensable in managing an increasingly volatile geopolitical environment. His aggressive foreign policy posture, particularly towards Iran and the broader Middle East, continues to align with powerful strategic interests within Washington.

Taken together, these developments indicate that the current crisis may not be moving toward immediate resolution. Instead, the world may be witnessing the management of a prolonged controlled confrontation designed to gradually exhaust Iran economically, diplomatically, and militarily until Tehran is pushed toward accepting terms that resemble unconditional surrender. Until then, ambiguity itself may remain the most effective weapon in this conflict.

Oman: Next Phase of Washington’s Strategy

After failing to secure a decisive strategic victory against Iran despite months of escalation and military pressure, Washington appears determined to restore its geopolitical credibility elsewhere in the Gulf. In this evolving power contest, Oman may increasingly find itself exposed to external pressure disguised as regional “security management.”

For decades, Oman has maintained a delicate diplomatic balance. Unlike many regional actors, Muscat preferred mediation over confrontation and dialogue over military adventurism. Yet geography has transformed the Sultanate into one of the most strategically valuable locations in the region.

The Port of Duqm and surrounding naval infrastructure are dangerously close to the Strait of Hormuz — the world’s most critical oil transit corridor. At the same time, the location places Oman within immediate strategic proximity of Iran’s Chabahar Port and Pakistan’s Gwadar Port, two emerging nodes in regional trade and connectivity. This triangle alone explains why global powers increasingly view Oman not merely as a Gulf state, but as a geopolitical gateway.

Washington’s expanding military footprint across the Gulf is often presented as a mechanism for maintaining stability and protecting maritime trade. However, history suggests that foreign military presence rarely remains temporary. Strategic access gradually evolves into political leverage, while security dependency slowly weakens national sovereignty.

Donald Trump’s confrontational posture toward Iran reflects more than ideological hostility. It also represents an attempt to demonstrate American dominance after Tehran resisted enormous economic sanctions, diplomatic isolation, and military intimidation. Direct confrontation with Iran carries enormous risks, but smaller Gulf states may appear easier arenas where Washington can project strength without triggering full-scale regional war.

This should concern every Arab emirate. The Gulf monarchies must recognize that fragmented security policies only increase dependence on outside powers. No state, regardless of wealth, can indefinitely preserve sovereignty while outsourcing its strategic defense architecture to foreign military forces.

Today the pressure may revolve around Oman and the Strait of Hormuz. Tomorrow the same logic could be applied elsewhere in the Gulf under another security pretext.

The lesson is becoming impossible to ignore - Arab states must either develop a collective regional security framework based on mutual defense and strategic independence, or continue watching external powers shape the future of the Gulf according to their own geopolitical interests.

Pushing Iran to Edge a Dangerous Gamble

The recent US strikes on Iran during Eid ul Adha have intensified a growing perception across the Muslim world that Washington is no longer merely seeking deterrence, but is steadily pushing Tehran toward a position where unconditional surrender becomes the only acceptable outcome. Rightly or wrongly, this perception is gaining traction because of the open and silent backing extended by several regional allies, particularly some Arab states that view Iran primarily through the lens of strategic rivalry.

However, history shows that when powerful nations attempt to corner adversaries without offering a credible political exit, the consequences often become unpredictable and dangerous. States under extreme pressure rarely capitulate quietly. More often, they resort to asymmetric retaliation before losing the capability to respond altogether.

Iran’s leadership is fully aware that its strategic infrastructure, military facilities, energy assets, and regional influence networks remain under increasing pressure. If Tehran reaches the conclusion that its long-term survival is at stake, it may decide that escalation carries fewer risks than submission. That is the point where the entire region could enter a far more dangerous phase.

The uncomfortable reality is that the United States, because of geography, may remain relatively insulated from direct retaliation. The immediate exposure instead lies with neighboring Gulf countries hosting American military bases, intelligence facilities, naval deployments, and logistical infrastructure. In any expanded confrontation, these locations could rapidly transform into frontline targets.

Such a development would not only threaten regional security but could also severely disrupt global energy markets, maritime trade routes, and already fragile economies across the Middle East. Investors, energy importers, and governments around the world would all pay the price for a conflict that may initially appear limited but could spiral beyond control.

This is reason the present trajectory demands urgent diplomatic intervention rather than continued escalation. Strategic pressure may weaken an adversary temporarily, but humiliation-driven conflict rarely produces lasting stability. The Middle East has already witnessed enough wars born from miscalculation, proxy rivalries, and excessive military confidence.

The world must recognize the danger before events move beyond diplomacy. Pushing Iran to the edge may not produce surrender; it may instead trigger a retaliatory spiral whose consequences no regional actor can fully contain.

Crucial week ahead for tanker market

Tanker owners were mulling their options as more contradictions came from the United States and Iranian peace negotiations updates over the weekend. 

On the one hand, President Trump declared on Saturday night that a deal with Iran had been ‘largely negotiated’ and the Strait of Hormuz would be included in a potential deal. On the other, Iran’s semi-official news agency, Tasnim, said on Sunday that under draft terms of the US-Iran negotiations, the Strait ‘will not return’ to pre-war status, but added more uncertainty by stating that ship traffic would return to previous levels.

Whatever happens in the next few days, the tanker market will take months to return to some semblance of normality. If there is a deal, London-based shipbroker, Gibson, expects some residual hesitancy in transiting the Strait, with only higher-risk owner ready to commit. The voyages are likely to follow tried and tested post-war routes close to the Iranian or Omani coastlines, the broker said, especially as uncertainty remains over the location of possible mines. 

Gibson said that of the 157 mainstream tankers of more than 25,000 dwt lying in the Gulf at the time of its report, 123 were laden and ‘will attempt to exit swiftly’. 

Meanwhile there are 150 ballasters above that deadweight promptly positioned in the Gulf of Oman and ready to be fixed for export cargoes in short order. Freight rates will be high and volatile, the broker predicted, until the risks and hazards are deemed to be low. 

Port congestion is likely, loading schedules will have to re-established, export infrastructure and port operations remain uncertain. But all parties in the supply chain will be keen to get cargoes moving again as quickly as possible. 

However, Gibson also points out that there are further challenges in the longer term. It could take months for tanker positioning to return to normal. 

Significantly more tankers are now positioned in the West largely because of record volumes of both crude and product exports out of the US Gulf. 

Ballasters are unlikely to react immediately and Western-located tankers are weeks away from the Gulf. Their owners will be unlikely to commit to a pricy ballast haul without a paying cargo to cover the eastbound leg, Gibson said. 

Overall, the shipbroker’s analysis is cautiously optimistic. But some on the ground in the Gulf are less so.

ADNOC CEO, Sultan Al Jaber, attending an Atlantic Council event last Wednesday, said: “Even if this conflict ends tomorrow, it will take at least four months to get back to 80 per cent of pre-conflict flows, and full flows will not return before the first or even second quarter of 2027”.

Analysts said that this was among the most pessimistic of views from top industry executives. However, it underscored the severity of what the International Energy Agency has called the largest-ever energy crisis because of the almost total closure of the Strait.

Courtesy: Seatrade Maritime New

 

Trump’s Mirage of Iranian Surrender

The recent US military strikes in southern Iran—executed precisely as Iranian diplomats converged on Doha for peace talks—expose a calculated strategy that goes far beyond traditional non-proliferation.

While Washington publicly frames its objectives around Iran’s nuclear stockpile and the reopening of the Strait of Hormuz, the true epicenter of American foreign policy has shifted.

Under the current US administration, the conflict is no longer just about disarming Tehran; it is about leveraging military pressure to enforce a fundamental geopolitical restructuring of the Middle East.

This strategy became clear when President Donald Trump explicitly linked an Iranian ceasefire to a "mandatory" expansion of the Abraham Accords. By demanding that heavyweight Muslim nations like Saudi Arabia, Pakistan, and Turkey immediately normalize ties with Israel, Washington is using the Gaza and Iran conflicts as diplomatic leverage. The underlying ambition is not a balanced regional equilibrium, but rather the creation of a US-backed, Israel-centric architecture that permanently sidelines Palestinian statehood and curtails sovereign dissent.

The "Great Deal" being offered to Tehran begins to resemble a demand for unconditional surrender. By weaponizing sanctions, frozen funds, and periodic airstrikes, the US is signaling that any relief for Iran is contingent on its capitulation to a new regional order.

However, attempting to fuse an Iran peace deal with a mandatory expansion of the Abraham Accords is a dangerous gamble. As regional analysts note, trading the fantasy of total Iranian capitulation for the illusion that a fragile ceasefire can anchor a brand-new Middle East order is highly unstable. Regional powers like Pakistan have already signaled that these issues cannot be artificially interlinked.

If Washington continues to condition maritime security and nuclear diplomacy on an ideological restructuring of the Muslim world, it will achieve neither peace nor stability. Instead of a "Great Deal," this heavy-handed approach risks collapsing ongoing diplomacy, leaving behind a more volatile, fractured, and deeply polarized Middle East.

Blockade of Strait of Hormuz: A Symptom, Not the Disease

The rising tension surrounding the Strait of Hormuz is once again dominating global headlines. Yet portraying the crisis merely as a maritime security dispute risks missing the broader geopolitical picture. The threat of disruption in one of the world's most critical energy corridors is not an isolated event; it reflects deeper and long-standing strategic tensions in the Middle East. Military posturing at sea may be the visible manifestation of the crisis, but the roots extend far beyond naval deployments.

At the center of the dispute lies the decades-long confrontation between the United States and Iran, shaped by disagreements over Tehran's nuclear ambitions, missile capabilities, regional influence, and economic sanctions. Successive rounds of sanctions have sought to pressure Iran into altering its strategic behavior, while Iran has argued that these measures amount to economic coercion intended to weaken its sovereignty and limit its regional role.

Supporters of sanctions maintain that economic pressure remains an important instrument for preventing nuclear proliferation and deterring regional escalation.

Critics, however, argue that prolonged sanctions have often generated unintended consequences, hardening positions rather than creating space for sustainable diplomacy. This divergence reflects one of the most enduring debates in international relations - whether coercive pressure changes behavior or merely deepens confrontation.

Questions regarding global non-proliferation policies have further complicated the debate. Critics often point to perceived inconsistencies in the international system, particularly concerning different approaches toward regional nuclear capabilities. Such perceptions, whether fully justified or not, contribute to mistrust and reinforce narratives of unequal treatment.

The Strait of Hormuz therefore should not be viewed solely through the narrow lens of maritime access or freedom of navigation. Any temporary reduction in tensions at sea may provide immediate relief to energy markets, but lasting stability is unlikely to emerge without addressing the wider political and economic disputes that continue to fuel confrontation.

The lesson is straightforward - blockades and naval tensions are symptoms of deeper geopolitical fractures. Addressing the symptom may calm markets for a time, but durable stability requires resolution of the underlying political disputes that continue to shape the region's strategic landscape.

Washington’s Flawed Energy Geopolitics

The persistent volatility in global energy markets is less a reflection of physical supply deficits and more a testament to weaponized energy supply. A cold analysis of data confirms there is no genuine global oil shortage. Instead, what the world is witnessing is a meticulously manufactured crisis, orchestrated by Washington in a desperate bid to dominate global oil production and its critical logistical chokepoints.

The centerpiece of this strategy relies heavily on calculated disruptions, particularly around the highly sensitive Strait of Hormuz. Yet, the Trump administration’s aggressive maneuvers have failed to achieve their ultimate economic target - driving crude prices up to US$200 per barrel mark. While the market remained resilient against these artificial supply shocks, the underlying motives of American interventionism have become glaringly obvious.

Through this manufactured instability, Washington has attempted to kill two birds with one stone. First, by keeping the market in perpetual anxiety without letting prices completely boil over to catastrophic levels, it successfully squeezed and manipulated the oil revenues of traditional Arab exporting nations, altering their fiscal leverage. Second, and perhaps more critically, the engineered friction along maritime routes are aimed at containing and throttling the steady flow of vital energy supplies to China’s industrial engine.

For developing economies, this artificial premium adds an unnecessary layer of import-led inflation. Global stakeholders must recognize that the current energy narrative is driven by geopolitical chess rather than the fundamentals of demand and supply. The international community must push for transparent, unhindered maritime logistics to insulate the global economy from unilateral hegemonic control.

Washington Must Admit Defeat in Iran

When the joint US-Israel military campaign against Iran commenced on February 28, the White House projected absolute, unyielding confidence. "Operation Epic Fury" was sold to the public as a swift, high-impact initiative designed to permanently dismantle Tehran’s regional influence and force absolute nuclear concessions. Today, nearly three months later, the comforting illusions have shattered. Washington may have dominated the initial tactical battles, but let us be entirely clear - the United States has fundamentally lost this war.

The primary miscalculation lies in a fatal, outdated belief that modern asymmetric warfare can be won purely through kinetic superiority. While waves of airstrikes successfully degraded conventional military infrastructure, they completely failed to account for Iran’s ultimate economic equalizer: its chokehold on the Strait of Hormuz. By throttling one-fifth of the world’s energy supplies, Tehran triggered devastating geoeconomic shocks that rapidly rippled across global markets—sending international oil prices soaring and destabilizing regional financial hubs like the Pakistan Stock Exchange (PSX).

Instead of isolating Iran, the conflict has backfired spectacularly on the domestic front. Skyrocketing gasoline prices and dipping approval ratings ahead of the crucial mid-term elections have severely compromised the Trump administration’s political leverage. Tehran, acutely aware of this vulnerability, recognizes that it does not need to achieve military parity; it merely needs to survive the onslaught to outlast the political timeline of its adversary.

Now, more than six weeks into an uneasy ceasefire, the sudden diplomatic push from Washington reveals an act of political desperation, not a pursuit of peace. The intensifying pressure to force Tehran into a ceasefire under Trump’s strict, maximalist conditions is a classic "ceasefire trap." It is a calculated, coercive maneuver designed to retroactively manufacture a paper victory out of a stalemated conflict on the ground.

As noted by regional analysts and highlighted in recent reporting by Reuters, a war designed to be a short-term romp has evolved into a long-term strategic failure. Forced capitulation on paper cannot mask the reality that Iran's core command structures, proxy networks, and buried uranium stockpiles remain entirely intact.

Rather than doubling down on a broken strategy or masking defeat with coercive diplomacy, it is time for the United States to mend its severe strategic mistake. Overwhelming military power is no longer enough to dictate the terms of global order, and continuing this entanglement will only deepen the damage to American credibility abroad.

Hostile Takeover of US Primaries by Billionaires

The integrity of democratic governance relies heavily on the transparency of its introductory gatekeepers - the political primaries. While international attention remains fixated on the theater of the general elections, a highly sophisticated, billionaire-backed financial apparatus is quietly engineering a structural overhaul of the electoral menu. 

Recent investigative disclosures have exposed a coordinated network of political action committees (PACs), shadow consultants, and dark-money conglomerates acting as a de facto "party within the party." This machine systematically distorts the democratic process long before the broader electorate ever reaches the ballot box.

From a structural standpoint, the strategy is calculated to maximize return on political investment. Primaries are historically low-turnout, low-visibility contests. In these economically vulnerable entry points, a heavily concentrated injection of capital yields outsized influence.

Billionaires and corporate interest groups are leveraging dark-money channels to finance saturated, highly targeted media campaigns. This capital asymmetry effectively suffocates grassroots contenders, forcing an artificial curation of candidates aligned with a centrist, corporate-friendly agenda. Because these transactions are deliberately obscured from public tracking, the fundamental relationship between representative and constituent is severely compromised.

This phenomenon extends far beyond campaign finance irregularities; it represents an existential threat to economic equity and fair representation. When elite donor classes capture the primary gateway, they effectively establish a "shadow veto" over macro policy.

Critical structural reforms—ranging from regulatory corporate accountability and tax normalization to robust economic justice initiatives—are preemptively sidelined. The result is a governance framework designed to insulate capital rather than serve the public interest.

If democratic systems are to retain institutional credibility, regulatory bodies must intervene, Congress must urgently implement stringent legislative reforms enforcing absolute disclosure of all political expenditure and multi-organizational coordination.

The power of the primary must be salvaged from private capital capture and restored to a merit-driven, community-oriented framework. Transparency is no longer a policy preference; it is the baseline requirement to prevent the absolute corporatization of the state.

PSX benchmark index up 1.4%WoW

Pakistan Stock Exchange (PSX) posted recovery throughout the week, after jitter on the first trading day. The benchmark Index gained 2,248 points or 1.4%WoW to close at 167,844 points on Friday, May 22, 2026. Market participation declined, with average daily trading volume plunging to 747 million shares.

The dominant sentiment driver remained the prevailing US-Iran conflict, where early-week drone strikes on UAE nuclear facilities and Saudi Arabia weakened investors’ confidence.

However, sentiment recovered from the second trading session onward after US Vice President Vance confirmed progress in diplomatic talks, with both Pakistan’s Interior Minister and Field Marshal Asim Munir traveling to Tehran to help finalize a draft agreement.

Foreign exchange reserves held by State Bank of Pakistan (SBP) surged to US$17.1 billion as of May 15, 2026 due to IMF disbursements under EFF and RSF programs.

Pakistan’s current account posted a deficit of US$324 million for April 2026, as compared to US$12 million for the same period last year, as higher energy import costs widened the trade gap.

IT exports increased by 33%YoY to US$423 million for April 2026.

Urea offtakes surged by 85%YoY to 463,000 tons in April 2026.

Other major news flow during the week included: 1) Pakistan secured a US$1.2 billion Saudi oil facility alongside a US$320 million AIIB loan for N-5 highway reconstruction, 2) Pakistan and IMF agreed on FY27 macro framework with GDP growth at 4.1%, CPI at 8.6% and primary surplus at 2% of GDP, 3) T-Bill yields rose across all tenors during this week’s auction, 4) Government approved sale of 51% to 100% stakes in IESCO, GEPCO and FESCO, and 5) Pakistan reopened offshore oil and gas exploration after an 18-year pause, signing 23 deep-water block agreements with immediate investment of US$82 million.

Top contributing sectors were Oil & Gas Marketing Companies, Leather & Tanneries, and Technology & Communication, while the laggards included                                                                                                                                                                                                                                                                                                                                                                                                                                                           Textile Spinning, Leasing Companies, and Tobacco.

Major selling was recorded by foreigners, amounting to US$14.2 million. Major buyers were Insurance and Individuals with US$13.4 million and US$3.7 million respectively.

Top performing scripts were: PTC, SCBPL, SRVI, PIOC, and UBL, while laggards included:  GADT, MEHT, CNERGY, AICL, and MTL.

According to AKD Securities, Iran-US negotiations, oil prices and FY27 budget finalization remain key near term catalysts. Prime Minister’s visit to China (May 23-26) and any ceasefire development serving as potential positive triggers.

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

 

Why US-Iran Ceasefire is a Dangerous Farce

The Islamabad talks are a masterclass in diplomatic theater, a performative exercise in negotiation that achieves nothing because Washington as well as Tehran desire peace on their terms. The temporary, Pakistan-mediated truce is not a stepping stone to a lasting ceasefire; it is a tactical breathing room used by two intransigent regimes to rearm, recalibrate, and prepare for the next, more violent escalation.

The primary catalyst for this endless delay is the delusion of total victory harbored by both sides. The Trump administration is treating these negotiations as a victory lap, operating under the flawed assumption that military strikes and severe economic pressure have brought Iran to the brink of collapse.

By demanding a "zero enrichment" standard, the total dismantling of Iran’s ballistic missile program, and the abandonment of its regional proxies, Washington is not offering a ceasefire. It is demanding unconditional capitulation from a sovereign state—a non-starter in the real world of geopolitics.

Tehran is equally detached from reality. While its domestic economy is in freefall and its infrastructure is heavily bruised, the Iranian regime remains obstinately defiant. By exploiting its geographic chokehold on the Strait of Hormuz—arbitrarily vetting ships and extorting "security fees"—Iran has weaponized global oil supply chains to hold Western economies hostage.

Tehran's insistence on immediate, permanent sanctions relief before making a single tangible concession on its nuclear program demonstrates a fundamental refusal to acknowledge its weakened position.

Compounding this gridlock is the duplicitous, bipolar messaging coming from both capitals. Washington arrogance—boasting that it is in "no hurry" while holding a gun to Iran's head—is met with Tehran’s stubborn pride, which views any compromise as a threat to regime survival.

The current truce is a diplomatic fiction. By demanding compromise on their maximalist demands, both the United States and Iran are guaranteeing that this pause in hostilities will inevitably fracture, dragging the region into an even deeper, catastrophic conflict.

First Woman to Lead Panama Canal

The Panama Canal’s Board of Directors has appointed engineer Ilya Espino de Marotta as Administrator of the Panama Canal for the period 2026–2033. 

The decision is the result of a national and international process of searching for, consulting with, and evaluating the profiles of Panamanian professionals, in line with the present and future challenges facing the Canal. 

“The legitimacy of this decision is underpinned by the independence of the process, the technical rigor of the method applied, and serious, objective institutional deliberation guided by the best interests of the Canal and the country,” said Jose Ramon Icaza, Chairman of the Board of Directors of the Panama Canal Authority as he made the official announcement.

The 64-year-old engineer will hold the post for seven years from 1 October 2026 until 2033, replacing the current administrator, Ricaurte Vásquez.

 “I have spoken with the new Administrator of the Panama Canal... to congratulate her and reaffirm our commitment to working together on strategic projects that generate employment, prosperity and progress for Panamanians,” Panama President Jose Raul Mulinowrote on his social media account X.

The new administrator and first woman to lead the Panama Canal Authority, is a marine engineer from Texas A&M University. She holds a master’s degree in engineering economics from Panama’s University of Santa María La Antigua and has completed executive training at INCAE and the Kellogg School of Management. 

She has over 40 years’ experience working at the Panama Canal in technical, operational and leadership roles, and was appointed in 2019 Deputy Administrator and subsequently Sustainability Officer.

Posing worldwide with her pink hard helmet, she became the face of the Canal expansion as she took over the project of the third set of locks when its director Jorge Quijano became Panama Canal Administrator in 2012, being the world’s first woman leading such an infrastructure construction. 

Following the inauguration of the expanded waterway in 2016, she has led high-impact key initiatives in water management, sustainability and modernization, distinguishing herself through her ability to manage complex projects and represent the institution internationally.

“I thank the Board of Directors for this vote of confidence and for granting me the privilege of continuing to contribute to my country. I pledge to continue doing my utmost for our country, supporting our clients and ensuring the strategic planning we have in place so that Panama continues to grow. I extend my deepest gratitude to my family for these 40 years of service, and I will continue to dedicate myself fully to the Panama Canal workforce,” said Marotta.

Courtesy: Seatrade Maritime News

 

Beijing’s Two Guests, Two Different Missions

China’s hosting of US President Donald Trump and Russian President Vladimir Putin in quick succession was more than a matter of diplomatic scheduling. Red carpets and ceremonial greetings often appear similar, but the political calculations behind state visits differ significantly. Beijing appeared to receive two major powers pursuing very different objectives.

Trump’s visit seemed driven largely by immediate economic and geopolitical concerns. Tariffs, trade access, supply chains and tensions surrounding the Middle East crisis appeared to dominate the agenda. Washington’s priorities also seemed linked to limiting disruptions in global energy markets and ensuring the reopening and security of the Strait of Hormuz. The United States understands that prolonged instability in this vital maritime route would have consequences not only for oil prices but also for global economic confidence.

Putin’s visit appeared to carry a different strategic character. Moscow’s engagement with Beijing looked less transactional and more structural. Energy cooperation, strategic coordination and strengthening a partnership that increasingly challenges Western influence seemed to occupy a central place. While Washington frequently engages China through competition mixed with cooperation, Moscow increasingly approaches China as a long-term geopolitical partner.

On the question of Middle East peace and the US-Israel confrontation with Iran, both leaders had reasons to seek Beijing’s attention but from opposite directions. Washington appears interested in preventing a wider regional escalation that could destabilize markets and alliances. Moscow, meanwhile, may view prolonged instability as another indicator of a changing global order where US influence faces growing challenges.

Even reception ceremonies can carry subtle diplomatic messages. Observers often read airport greetings as signals of political warmth and priority. Whether intentional or not, such gestures become subjects of interpretation.

The South China Sea dispute and tariffs also remain unresolved pressures between Washington and Beijing. China’s larger message appears increasingly clear: it no longer wishes merely to participate in global politics; it seeks to shape the environment in which global politics is conducted.

Pakistan Shouldn't Pass the Cost to Consumers

The prolonged disruption of the Strait of Hormuz is exposing vulnerabilities across South Asia. Much of the attention has focused on India because of its heavy dependence on energy imports flowing through the strategic waterway. Rising fuel costs, inflationary pressures and risks to industrial growth are now beginning to emerge. Pakistanis should not avoid viewing this merely as a problem across the border, but take immediate corrective steps. Pakistan's challenge is even more complicated because its economic space for absorbing external shocks is considerably narrower. To read details click https://shkazmipk.com/energy-crisis-in-pakistan-19/