Isaac Herzog sworn in as President of Israel

Isaac Herzog was formally sworn in as the 11th President of Israel on Wednesday at the Knesset, replacing Reuven Rivlin. Herzog was sworn in using the same Bible used to swear in his father, Chaim Herzog, sixth President of Israel. The Bible belonged to the new president’s grandmother, Sarah.

Upon accepting the presidency, Herzog pledged to “lower the tone, reduce the flames, and calm things down” in Israel, despite the many divides in the Jewish, democratic state.

“I will set out to complete the task every morning to be the president for all,” Herzog said. “In normal times, this task would almost sound naive. Unfortunately, however, these are not normal times. These are days when statesmanship has been swept away by polarization; days in which the unifying ethos and the shared values are more fragile than ever.”

Herzog noted the two-and-a-half years of stormy election campaigns that followed one another, in what he called an unprecedented political crisis in the State of Israel.

“It has been a crisis which, as the history of modern times teaches us, has managed in the past to destroy nations that were much more ancient and established than the young State of Israel, which is only 73 years old,” he said.

Herzog said he would “embark on a journey between the lines of the rifts and breaks of Israeli society” and “aim to be a unifier amid the differences, the bridge between the tears.”

In his final speech to the Knesset, Rivlin broke out in tears and warned Herzog that nothing in Israel can be taken for granted. Herzog thanked Rivlin for his years of service in his address.

“You knew how to make your love of this country infectious for its sons and daughters,” Herzog told Rivlin. “You represented Israel with great respect in the family of nations, including during the last month of your tenure. You painfully identified the breaking points in Israeli society. You placed a mirror before us, even if its reflection was not always pleasing for all of us.”

Herzog wished the new government of Prime Minister Naftali Bennett success.

“There are many complex arguments in Israel that focus on internal elements,” he said. “This is the beauty of Israeli democracy. I am confident that this entire body wants you to succeed. May it be the success of the entire State of Israel.”

But Herzog also made a point of wishing well to the opposition, under Likud leader Benjamin Netanyahu, against whom he ran unsuccessfully for prime minister.

“There is no democracy without opposition,” Herzog said. “Political realities called me to serve in the position you are now in a number of times. This time, it has fallen on your shoulders. I am confident that you will fulfill your service to the people from the opposition in a statesmanlike, responsible and relevant manner.”

Ever Given starts journey out of Suez Canal

According to BBC, the mega container ship that blocked the Suez Canal in March finally left the Suez Canal after Egypt signed a compensation deal with its owners and insurers. The Ever Given, around 09:30 GMT headed north towards the Mediterranean escorted by tugs. The ship has been impounded for three months near the canal city of Ismailia.

As it got under way, Egyptian TV showed footage of the captain and a crew member being presented with flowers and a plaque on board the ship.

The 193 kilometre long Suez Canal connects the Mediterranean Sea at the canal's northern end to the Red Sea in the south and provides the shortest sea link between Asia and Europe.

The vital waterway was blocked when the 400-meter long Ever Given became wedged across it after running aground amid high winds. Global trade was disrupted as hundreds of ships were stuck in the traffic jam.

The container ship was refloated following a six-day salvage operation that involved a flotilla of tug boats and dredging vessels. One person was killed during the operation.

Since then, the Suez Canal Authority (SCA) has been seeking compensation from the Ever Given's Japanese owner Shoei Kisen for the cost of the salvage operation, damage to the canal's banks and other losses.

The SCA initially asked for US$916 million compensation, including US$300 million for a salvage bonus and US$300 million for loss of reputation. But UK Club - which insured Shoei Kisen for third-party liabilities - rejected the claim, describing it as "extraordinarily large" and "largely unsupported".

The SCA later lowered its demand to US$550 million. The final settlement, which has not been revealed, was agreed a few days ago and signed on Wednesday to coincide with the ship's release.

SCA head Osama Rabie told a news conference that the authority would not change its rules about the passage of ships in bad weather. However, he said the grounding had accelerated plans for the canal's expansion.

The UK Club paid tribute to "the work and expertise of the SCA and others whose professionalism and dedication resulted in the ship being refloated".

"Over the last three months we, along with the ship's owners and other interests, have worked closely with the SCA's negotiations team to achieve today's results," a statement said.

Yukito Higaki of Imabari shipbuilding, of which Shoei Kisen is a subsidiary, said the company would continue to be "a regular and loyal customer" of the Suez Canal Authority.

The vessel, with an Indian crew, is still loaded with about 18,300 containers. It is due to undergo an inspection by divers at Port Said before sailing to Rotterdam and then to the UK port of Felixstowe where it will offload its containers, the Wall Street Journal reported.

Pentagon defends Bagram exit

The Pentagon on Tuesday defended its departure from Bagram Airfield after reports emerged that the United States left in the dead of night, shutting off electricity without coordinating a handover and temporarily leaving the base to looters.

Pentagon press secretary John Kirby said he had seen the press reports but insisted there was “coordination with Afghan leaders, both in the government, as well as in the Afghan security forces, about the eventual turnover.”

“As you know, it was the seventh and the final base that we turned over to the Afghan National Security Forces. You don't do that in a vacuum, and this wasn't done in a vacuum,” Kirby told reporters at the Pentagon.

The Associated Press earlier on Tuesday reported that when the US military left Bagram early Friday they did so by shutting off the electricity and leaving in the dark, without notifying the base's new Afghan commander. 

The commander reportedly discovered the absence more than two hours later. Before the Afghan army could take control of the airfield from which US forces have fought the war in Afghanistan for the past 20 years. It was invaded by a small army of looters, Afghan military officials told the AP.

The US military also reportedly left behind thousands of civilian vehicles, most without keys to start them, hundreds of armored vehicles and small weapons and the ammunition for them.

Kirby said the final conversation and coordination about the turnover at Bagram occurred about 48 hours prior to US troops leaving.

“Obviously, for operational security reasons, we didn't go into the exact hour at which all US forces would leave Bagram,” he said. 

He added that while he can't speak for the level of information that went down the Afghan chain of command, “Afghan leaders, civilian and military, were appropriately coordinated with and briefed about the turnover of the base, including a walk-through of facilities with senior Afghan leaders.” 

When asked which senior Afghan leaders and the US officials had coordinated with, he referred questions to the staff of Army Gen. Scott Miller, the top US commander in Afghanistan who is preparing to turn over his command to US Central Command head Gen. Frank McKenzie. 

Kirby also confirmed, “There were some vehicles obviously left behind and some turned over to Afghan officials,” but said it was not uncommon compared to turnovers of other facilities in the country. In addition, throughout the drawdown, “A few hundred small arms and ammunition were transferred” to the Afghan National Defense and Security Forces.

Haredim: The biggest threat facing Israel

Israel’s new leadership calls itself the “Change Government” because the long-serving Benjamin Netanyahu has been finally displaced. But its ideological disparities risk blocking the real changes that are needed, including on the primary threat the country as currently constituted faces.

It’s not from the Palestinians, nor from the wider Arab world or even Iran. The greatest danger is from within: the rapidly expanding haredi.

The haredim cling to a rigid interpretation of Judaism which tolerates little deviation from ancient traditions. They can be found in the United States, Belgium, Britain and elsewhere, always forming tight-knit communities, but only in Israel is there a toxic firewall between them and fellow citizens.

This can be traced to the decision some 70 years ago by David Ben-Gurion to grant draft exemptions to students at yeshivot. Back then this applied to several hundred genuine scholars.

This arrangement turned Torah study into an arguably unprecedented obsession in which all haredi men are pushed to lifelong seminary duty, first to avoid the draft and then essentially as a source of welfare.

Whereas other university students pay tuition, haredim receive stipends for as long as they study, if possible for life. Over 150,000 men now in these schools are indoctrinated in the faith that stricture and rabbis supersede the laws and officials of the state.

To maintain the insularity, most haredi high schoolers are sent to the community’s schools that teach little or no math, science and English; in recent days Israel’s chief rabbi, who is haredi, called such studies of secular subjects “nonsense.” Israel funds these schools even though their unfortunate graduates are essentially unemployable in a modern economy.

As a consequence less than half of haredi men are part of the workforce, the lowest participation level of any identifiable group in Israel – and, tellingly, far less than haredim in other countries. The minority who do work tend to populate a vast religious bureaucracy that includes supervisors of the mikvaot ritual baths, kashrut food certifications, and other apparatchiks.

Women in the community are banished from haredi parties’ candidates lists and encouraged to procreate with such vigor that they on average produce 7.1 children – far more than in any identifiable group in Israel.

They live in a poverty rendered minimally tolerable by state subsidies for each child at the expense of working Israelis. Thus the community doubles itself every 16 years, four times the rate of the rest of Israel.

The haredim have grown to about 12% of the 9.5 million people – almost 20% of the country’s Jews. Unless something changes – and the attrition rate is estimated at less than 5% – they will constitute a majority of Israel’s Jews in a few decades.

Do Israelis comprise of settlers and occupiers only?

"There are no people in the Israeli entity, they are all occupiers and settlers," said Hezbollah leader Hassan Nasrallah during a speech on Monday afternoon. The speech was delivered at the opening of a conference titled "Palestine is Victorious," convened in Lebanon in order to renew media discourse and manage the conflict with Israel.

Nasrallah did not specify whether Arab Israelis were also considered occupiers and settlers.

With tensions rising between the United States and pro-Iranian militias in Syria and Iraq, Nasrallah stressed on Monday that Hezbollah is "facing the American hegemony" in Iraq and Syria.

The Hezbollah leader added that the conflicts with Israel and the US cannot be separated as Israel's existence is contingent on American support, saying "Every massacre committed by the enemy is an American massacre, and every aggression of this enemy is American aggression."

Concerning the worsening economic crisis in Lebanon, Nasrallah blamed the US, saying American policy is the "main reason" for the crisis, as "the Americans want to besiege, punish and prevent any aid that comes to Lebanon." 

While Nasrallah admitted that incorrect government policies were also "among the causes" of the economic crisis, he stressed that the US is the "main cause."

Nasrallah added that the goal of the American blockade is to "provoke" the people of Lebanon against Hezbollah and to keep Hezbollah busy in order to prevent it from supporting Palestinians.

On Sunday night, Israeli Defense Minister Benny Gantz offered humanitarian aid to Lebanon, saying "as an Israeli, as a Jew and as a human being, my heart aches seeing the images of people going hungry on the streets of Lebanon."

Lebanon is suffering from a worsening economic crisis, with violence and protests breaking out in cities around the country as basic services collapse. Electricity outages and gas shortages are commonplace.

More than half of Lebanon’s population is living in poverty, and its financial crisis is likely to rank in the top 10, and possibly even the top three, most severe crises in the world since the mid-1800s, according to the World Bank.

Nasrallah has said in recent speeches that the country's gasoline crisis could be addressed "within a few days" if it would just accept Iranian oil shipments, which are under sanctions by international law.

Hezbollah will eventually negotiate directly with Tehran and import Iranian oil through the Port of Beirut if the Lebanese government does not begin “bearing its responsibility,” Nasrallah said at the time.

During the speech, which focused largely on pro-Iranian media capabilities, Nasrallah also claimed that Israelis trust Palestinian and pro-Iranian media more than they trust their own leaders and media.

Nasrallah stressed that the media of the "Axis of Resistance" must be developed just like its military capabilities, adding that the "resounding victory" that the media contributed to the "victory" Palestinian terrorist groups claimed during Operation Guardian of the Walls.

The Hezbollah leader additionally claimed that "everyone" recognized the "victory" of the Palestinians during the operation, despite "some media in the Gulf" denying it. "While the enemy fails to achieve victory, Arab media come to make an imaginary victory for him from the remains of children," said Nasrallah.

Nasrallah also referenced the recent blocking of a number of pro-Iranian media sites by the US, saying that this was "proof" of the strength of the resistance media "because of its influence."

The militant leader stressed the importance of using social media, stating that while "the enemy can take down satellite channels, it is not possible to stop social networking sites, so we must take advantage of them."

"We know the enemy's strengths, recognize them, and work on ways to confront and weaken them," said Nasrallah. The Hezbollah leader claimed that one of the most important strengths of the axis' media is "honesty in conveying news and facts, adding that the militant groups' media did not rely on "illusions and lies" in their "psychological war."

Referring to Palestinian issues, Nasrallah stated that Palestinian militant groups promised "liberation" and to get prisoners released, and fulfilled their promise. It is unclear which liberation Nasrallah was referring to. Additionally, a prisoner swap agreement has not yet been reached.

"When in the axis of resistance we talk about the liberation of Palestine, we are not talking about dreams or fantasies. The battle of the Sword of Jerusalem (the name the Palestinians gave to Operation Guardian of the Walls) has made Jerusalem closer than ever," said Nasrallah. "We do not exaggerate our goals, and this is one of the most important elements of the resistance force."

In recent speeches, Nasrallah has warned that any “violation” of Jerusalem would result in a regional war in which pro-Iranian groups from multiple countries could take part.

Nasrallah also addressed recent reports in Lebanese media about the defendants in the investigation of last year's Beirut port explosion, questioning whether the investigation was "real judicial action" or "political targeting." A large explosion targeted the Beirut offices of a lawyer involved in the case last week.

Dozens were killed and thousands were injured in the massive blast which shook Beirut last August. While the investigation into the explosion has made little headway amid a system plagued by corruption, Lebanese Judge Tarek Bitar recently moved to lift the immunity of a number of high ranking officials in order to question them as suspects in the case.

“Justice is still distant and the truth is still concealed,” said Nasrallah concerning the investigation. Hezbollah has been accused of being responsible for the blast, as it has strong control over Lebanon’s ports.

Ever Given to leave Suez Canal on 7th July

A giant container ship that blocked Egypt’s Suez Canal for nearly a week in March this year will be released on 7^th July following an agreement between authorities and the vessel’s owners, said Suez Canal Authority (SCA) on Sunday.

A ceremony for the signing of the settlement ending the dispute over the 400-meter-long Ever Given will be held on Wednesday, and the ship will be allowed to depart.

Earlier, Stann of London, the attorneys for the ship’s owner and insurers, said that a formal solution had been agreed upon and that preparations for its departure were being made.

Neither the SCA nor the attorneys provided details of the settlement. But the agreement marks an end to a dispute that arose after the Ever Given was freed after getting stuck in the vital waterway in March. The incident roiled global shipping markets.

The SCA had initially sought over US$900 million in damages and compensation that included recovering expenses related to freeing the ship, lost revenue and other costs and claims. The figure was later lowered to US$550 million.

Japan’s Shoei Kisen Kaisha the owner, and the ship’s insurers initially offered US$150 million.

The SCA brought the matter to an Egyptian court, which ordered the seizure of the ship pending a resolution of the dispute. Authorities had said that they were eager to reach an out-of-court agreement and that the ship would be allowed to leave once such a deal was reached.

The ship is being held in the Great Bitter Lake -- about halfway along the canal.

Saving Lebanon from total collapse

Reportedly, Lebanon is hurtling toward total collapse. The World Bank believes that the country’s financial and economic crisis is one of the severest the world has witnessed in the past 150 years. 

A number of factors have contributed to Lebanon’s disastrous situation, but a major cause of its troubles is the dominant position that Iran has managed to acquire in the nation’s political life, by way of its proxy Hezbollah. But now that Iran is undergoing a severe economic crisis of its own, a window of opportunity may have opened for its malign influence over Lebanon to be weakened, if not entirely eliminated.

Lebanon is on the verge of a political, economic and social catastrophe. It has been without a government for eight months. Food and medicines are in short supply, electricity cuts last for much of the day, while people are queuing for hours at gas stations and, as they clash over who gets to fill their tank first, fist fights have turned into shootings. Now criminal gangs are moving in to exploit the situation. A representative of the union for fuel distributors and gas stations in Lebanon said, “Individuals claiming to be in charge of security at gas stations are using extortion… The owners of over 140 gas stations are refusing to accept deliveries of gasoline because they have been exposed to extortion and beatings.”

On 22^nd June the acting administration raised the price of bread for the fifth time in a year.  The latest increase — 18 percent from the last raise in February — was the result of the decision to end subsidies on sugar and yeast, which both go up in price in consequence.  

In June the World Bank issued a report on the rapidly deteriorating situation. It believes that more than half of Lebanon‘s population may have been pushed below the poverty line. While the official rate of exchange for one US dollar is 1,507 Lebanese pounds, the banks do not permit currency conversion or foreign fund transfers and so dollars are simply not available at the official rate. On 25^th June the rate on the black market was 16,450 Lebanese pounds. The country’s gross domestic product, close to US$55 billion in 2018, plummeted to some US$33 billion last year.  Foreign currency reserves are at an all-time low. 

The World Bank pulls no punches in its criticism of Lebanon’s political elite in which Hezbollah features so strongly. It accuses them of deliberately failing to tackle the country’s many problems, which include the economic and financial crisis, the COVID pandemic and last year’s Port of Beirut explosion.  The inaction, says the report, is due to failure to agree on policy initiatives but also a continuing political consensus that defends “a bankrupt economic system, which benefited a few for so long”.

Following the explosion in Port Beirut in August 2020, Saad Hariri was named by the Lebanese parliament as prime minister designate, and charged with forming a new government. So far, because of an ongoing dispute between him and President Michel Aoun over the composition of the new administration, he has failed to do so.  

Hariri wants to assemble a technocrat cabinet dedicated to enacting the reforms long demanded by the World Bank, the International Monetary Fund and donor countries such as the United States and France. In March he stormed out of a meeting with Aoun, telling reporters that the President had sent him a proposed list of ministers and asked him to sign off on them. Hariri had rejected the request as unconstitutional.  Aoun is a strong supporter of Hezbollah, the Iran-backed group that dominates Lebanese politics and underpins his presidency. According to Hariri, Aoun was pushing for a third of all cabinet seats for his Hezbollah allies and their supporters, which would give them, veto power over government decisions.

The shoeing into power in Iran on 18^th June of a hard-liner, Ebrahim Raisi, as its new president can be seen as a desperate effort by the ruling élite to shore up the power of a regime in economic freefall.  The value of the Rial, the national currency, has halved over the past two years, inflation is running at 50% and the country is experiencing mass unemployment. Popular protests are bursting out in major towns and cities all over Iran.

Hezbollah’s popularity among the Shia population owes much to the vast sums it has spent in its social and health programs.  The collapse of the Iranian economy means that the regime is no longer able to pay its Hezbollah proxy in dollars.  Its financial support is now provided in the rapidly depreciating Lebanese currency. 

Bahaa Hariri, the brother of Lebanon’s designated Prime Minister Saad, is a billionaire businessman.  He is reported to believe that if Iran cannot continue with its payments, support for Hezbollah will quickly collapse. “Some die-hard supporters will maintain their allegiance to Hezbollah,” he is reported as saying, “but many others will no longer be prepared to support the movement if the payments stop.”  

One failing economy is attempting to support another, while simultaneously trying to maintain the political status quo.  That is scarcely a sustainable situation.  If Iran’s deteriorating economic position results in Hezbollah losing power in Lebanon, this might provide the opportunity for Hariri to assemble his technocrat cabinet and institute the economic reforms necessary to pull the country back from the brink of disaster.