Khamenei representative meets Nasrallah

Seyed Hassan Ameli, the representative of the Leader of the Islamic Revolution to Ardebil Province, traveled to Lebanon and met with the Secretary General of Hezbollah, Sayyid Hassan Nasrallah. 

Ayatollah Ameli was accompanied by a group of clerics who are members of the Assembly of Experts. 

Iran’s Ambassador to Lebanon, Mojtaba Ameli, also attended the meeting, according to Tasnim. 

In the meeting, the historical relations between the two brotherly countries were discussed. 

Ayatollah Ameli has been rising to prominence in recent years as a result of tensions between Iran and the Republic of Azerbaijani over Israel’s presence in the South Caucasus nation. Ameli has also been at the center of Tehran’s messaging efforts to Baku over the latter’s relations with Israel. 

The Israeli Ambassador to the Republic of Azerbaijan, George Deek, has caused several uproars by taking controversial actions such as visiting the Iran-Azerbaijan border or alluding to Iran’s Azeri population.

Ayatollah Ameli responded in kind, visiting the Israel-Lebanon border.  In mid-July, Ayatollah Ameli, an ethnic Azeri, posed for a photo right on the Lebanon-Israel border.

“I greeted the martyrs of the Resistance by coming to an Israeli border area that is overlooking a settlement in the occupied territories,” he said. 

He also said that his move was a response to the Israeli ambassador to Azerbaijan. “The Israeli ambassador to Azerbaijan came close to our borders to tell us that ‘we’ve come very close to you.’

For me, that was difficult to tolerate. So, on my trip to Lebanon, I went to Maroun al-Ras and stood near the border area overlooking a Zionist settlement. And I cursed the killer of the Palestinians who has been shedding Muslims’ blood for 75 years,” Ayatollah Ameli said in a tweet. 

Later, when he came back to Ardebil, Ayatollah Ameli said he visited the Lebanon-Israel border so that the Israeli ambassadors to Azerbaijan know that his action does not go unanswered. 

 

 

Saudi Arabia asks its citizens to leave Lebanon

Saudi Embassy in Lebanon has warned the Saudi citizens from being present or approaching the areas that are witnessing armed conflicts in the country.

The embassy has asked Saudi citizens to leave Lebanon quickly, in addition to the importance of adhering to the decision of banning travel there.

In the event any emergency occurs, the embassy advised the citizens to contact them through the following numbers: The Embassy number: 009611762711; 009611762722 — Saudis affairs number: 0096178803388; 0096176026555 — the unified number for the Saudi affairs abroad: 00966920033334 — the embassy account on X app: @KSAembassyLB

Ukraine drone hits Russian oil tanker

A Ukrainian drone full of explosives struck a Russian fuel tanker overnight near a bridge linking Russia to annexed Crimea, the second such attack in 24 hours, both sides said on Saturday.

No one was hurt, but the Crimean Bridge and ferry transport were suspended for several hours, according to Russian-installed officials in Crimea, which Moscow seized from Ukraine in 2014.

A Ukrainian intelligence source told Reuters that the drone with 450 kg of explosives hit the SIG vessel as it transported fuel for the Russian military in Ukrainian territorial waters.

"The tanker was well loaded with fuel, so the 'fireworks' were seen from afar," the source said, of the joint operation by Ukraine's navy and security service.

Kyiv says destroying Russia's military infrastructure inside Russia or on Russian-controlled territory in Ukraine is crucial to its counteroffensive after the February 2022 invasion.

Another drone attack on Russia's navy base at Novorossiysk damaged a warship on Friday, the first time the Ukrainian navy had projected its power so far from its shores.

And a Ukrainian government agency warned on Saturday that six Russian Black Sea ports - Anapa, Novorossiysk, Gelendzhik, Tuapse, Sochi, and Taman - were in war risk area.

Moscow has bombed Ukrainian ports since its withdrawal last month from an UN-brokered deal to let Ukraine export grain.

The SIG tanker had been supplying oil to Russian troops in Syria, according to Vladimir Rogov, a Russian-appointed official in Ukraine's southeastern region of Zaporizhzhia.

The United States imposed sanctions on the tanker and its owner, St. Petersburg-based Transpetrochart, in 2019 for helping provide jet fuel in Syria.

Vasyl Malyuk, head of Ukraine's SBU security service, did not directly confirm the latest attack but said any incident with Russian ships or the Crimean Bridge was "an absolutely logical and efficient step towards the enemy".

"Moreover, such special operations are conducted in the territorial waters of Ukraine and are completely legal," Malyuk said on the Telegram messaging app.

Russia's Novorossiysk Maritime Rescue Coordination Centre was quoted by the RIA news agency as saying there was no fuel spill from the SIG, as the ship had been carrying only technical ballast. Recovery work was underway with two tugboats nearby.

Rogov posted an audio clip on Telegram in which the SIG requested a tow. He also posted pictures of what he described as shattered fixtures and equipment inside the vessel.

"The SIG tanker ... received a hole in the engine room near the waterline on the starboard side, preliminarily as a result of a sea drone attack," Russia's Federal Marine and River Transport agency said in a statement on Telegram.

The Moscow-installed authorities in Crimea said the bridge, which was completed by Russia in 2018 and has come under serious attack twice in the war, was not targeted.

 

Russia accuses JPMorgan not processing its grain payments

Russia, on Friday accused that the US bank, JPMorgan has stopped processing payments for the Russian Agricultural Bank. Russia demanded action, not promises, from Washington to help Russian grain and fertilizer reach global markets.

It may be recalled that JPMorgan has handled some Russian grain export payments for the past few months with reassurances from Washington. However, that cooperation stopped this week, Russia's Foreign Ministry said on Friday.

"The direct channel between the Russian Agricultural Bank and JPMorgan ... was closed on August 02," foreign ministry spokeswoman Maria Zakharova was quoted by Russian media as saying.

The United Nations, the US State Department and JPMorgan declined to comment.

Moscow had allowed the safe export of Ukraine grain via the Black Sea for the past year under a deal it quit on July 17. Russia has a list of demands it wants met before it will return to the arrangement.

Under a related pact - also brokered in July 2022 - UN officials agreed to help Russian food and fertilizer exports reach global markets.

"As soon as this is done, this deal will immediately be renewed," Kremlin spokesman Dmitry Peskov told reporters on Friday.

A key Russian demand has been the reconnection of the Russian Agricultural Bank to the SWIFT international payments system. It was cut off by the European Union in June 2022 following Russia's invasion of Ukraine.

Zakharov, the foreign ministry spokeswoman, said the West and the United Nations tried to present (payment processing by JPMorgan) as a working alternative to SWIFT.

US Secretary of State Antony Blinken told reporters on Thursday that Washington would continue to do whatever is necessary to ensure Russia can freely export food if the Black Sea grain deal was revived.

While Russian exports of food and fertilizer are not subject to Western sanctions imposed after Russia's February 2022 invasion of Ukraine, Moscow has said restrictions on payments, logistics and insurance have hindered shipments.

Top US State Department sanctions official James O'Brien said on Friday that Russia needed to be clear about what it was asking for and what constituted success, suggesting it should be how much food and fertilizer reaches the world.

"It has put forth a number of different demands and all of them having to do with various Russian institutions not getting services from the private sector," he told reporters. "We have made clear that we're prepared to help on any of these matters."

"Russia is exporting record amounts of grain," O'Brien said. "So if the measurement is food for the globe ... Russia's complaints amount to minor allegations about a system that is working very well."

Russia may export at least 55 million tons of grain in the 2023/24 marketing season, slightly less than the estimated record-breaking 57 million tons in the 2022/23 season, Russia's Grain Union said last month.

Ukrainian exports for the 2022/23 season were almost 49 million tons, according to Agriculture Ministry data.

Nearly 33 million tons of that was shipped under the Black Sea deal.

Western countries have accused Russia of using food as a weapon of war by quitting the Black Sea deal, which had helped bring down global food prices, and then carrying out repeated air strikes on Ukrainian ports and grain stores.

Russia has complained that not enough Ukrainian grain was getting to the poorest countries. The United Nations has argued that the deal helped everyone because it brought prices down 23% from a record high in the weeks following Russia's invasion.

 

OPEC Plus keeps oil output levels unchanged

The Joint Ministerial Monitoring Committee (JMMC) of OPEC Plus affirmed on Friday the current levels of oil production of the group and didn’t make any recommendation to change the output.

Saudi Minister of Energy Prince Abdulaziz bin Salman chaired the 49th Meeting of the JMMC via videoconferencing.

The JMMC reviewed the crude oil production data for the months of May and June 2023 and noted the overall conformity for participating OPEC and non-OPEC countries of the Declaration of Cooperation (DoC). The committee urged all the participating countries to conform and fully adhere to the compensation mechanism.

The committee reaffirmed the commitment of its member countries to the DoC which extends to the end of 2024 as agreed in the 35th OPEC and non-OPEC Ministerial Meeting (ONOMM) on June 04, 2023. It also decided to adjust the frequency of the meetings to every two months for the JMMC and the authority of the JMMC to hold additional meetings, or to request an OPEC and non-OPEC Ministerial Meeting as agreed on in the 33rd OPEC and non-OPEC Ministerial Meeting (ONOMM) on October 05, 2022.

The committee will continue to closely assess market conditions noting the willingness of the DoC member countries to address market developments and their readiness to take additional measures at any time in tandem with the strong cohesion of OPEC and non-OPEC countries.

The committee also expressed its full recognition and support for the efforts of Saudi Arabia to support the stability of the oil market and reiterated its appreciation for the Kingdom’s additional voluntary cut of one million barrels per day which it extended to the month of September.

The committee acknowledged the Russian Federation's additional voluntary reduction of exports by 300,000 barrels per day for the month of September.

The next meeting of the JMMC is scheduled for October 04, 2023.

Pakistan Stock Exchange index up 3.20%WoW

The week ended on August o4, 2023 started on a very optimistic note, with the market up 958 points on Monday and closing at 48,035 points by day end. This was mainly driven by the central bank decision to keep policy rate unchanged at 22% despite the market expectations of an increase.

Moreover, positive sentiments encircling Finance Ministry’s expectations of eased out inflation during July and to stay within 25-27% further contributed to market being optimistic on Monday. On the contrary, CPI figures announced on Tuesday materialized to 28.3%YoY and negated the original statement made by the Finance Ministry.

Trade deficit decreased to US$1,607 million in July 2023 from US$1,863 million in June 2023.

The index remained on upward trajectory on Wednesday to close at 48,765 points and then cascaded again to 48,611 points after staying volatile on Thursday.

Overall, the benchmark index ended gaining 1,509 points or 3.20%WoW during the week and closed at 48,586 points while transcending to 48,765 points on Thursday.

The market capitalization this week was PKR7.290 trillion increasing from PKR7.097 trillion a week ago.

Average daily turnover spiked to 391.82 million shares from 125.64 million shares a week ago, reflecting a sharp increase in market participation by 211.9%.

Foreign exchange reserves held by SBP decreased to US$8.154 billion from US$8.186 billion to and the total liquid reserves declined US$13.464 million from US$13.534 million as of July 27, 2023.

Other notable news for the week Were: 1) Prime Minister Shahbaz Sharif announced the dissolution of the National Assembly to take place on 9th August, 2) July textile exports declined 15%YoY to US$1.31 billion, 3) Pakistan Stock Exchange (PSX) got ready  for Symmetry Group’s IPO, 4) Chinese Exim bank rolled over US$2.4 billion which are due in next 2 fiscal years, 5) July cement dispatches rise 57.44%YoY to 3.212 million tons, and 6) Senate passed a bill allowing the establishment of state-owned Pakistan Sovereign Wealth Fund.

Modarabas/ Sugar and Allied Industries/ Chemical have been worst performers, whilst Close-Ended Mutual Fund remained an anomaly.

Top performing scrips of the week were: HGFA, CNERGY, OGDC, POML, and THALL, while top laggards included: COLG, UBL, FABL, YOUW, and CEPB.

Flow-wise, major net selling was recorded by Mutual Funds with a net sell of US$5.97 million. Companies absorbed all of the selling with a net buy of US$8.82 million.

The market is likely to stay positive given the strengthening of macros and the receipt of Chinese loan rollovers worth US$2.4 billion. Market participants are advised to follow a cautious approach when investing while focusing on dollar denominated revenue stream companies like E&Ps and Technology to hedge against currency risk or in companies with healthy dividend yields.

Bleak outlook for food grain shipment from Ukraine

Russia’s exit from the Black Sea grain export deal last month dampened outlook to keep Ukrainian supplies flowing.  

The issue at present is global access to food and affordability at a time when inflation shows few signs of letting up. 

Food supply risks are multiplying again, with extreme weather and India’s rice export restrictions adding to the concerns.

According to data released Friday, the United Nations’ global food index rose for the first time in three months in July. The rice index reached its highest nominal level since 2011.

Ukraine has redirected some crop exports by rail, road and river through its European neighbors, but those volumes are causing tensions.

Poland, Slovakia and Hungary, along with Bulgaria and Romania, have banned purchases of Ukrainian grain after declining prices spurred protests from local farmers.

A key route to ship Ukrainian grain is the Danube, though that’s expensive and lacks capacity. The Kremlin has also escalated assaults on grain infrastructure in Ukraine, including attacking Danube ports. It also fired missiles that damaged equipment at a cargo terminal in the Odesa region.

The options for farmers who made Ukraine a global breadbasket are narrowing as the economics of their business deteriorates. They have limited storage space as this year’s harvest piles up. Major farm companies are curbing winter crop plantings.

Decisions taken over the next few weeks in Ukraine — for wheat, barley and rapeseed — will have repercussions for the 2024 harvest. That will hit both Kyiv’s precious wartime revenues, and global supplies of key food staples.

Meanwhile, more than 90 countries joined the US in signing a joint communiqué condemning the weaponization of food, according to US Secretary of State Antony Blinken. Leading a UN debate on efforts to combat global hunger, he zeroed in on Russia for disrupting the flow of food with its war on Ukraine and the grain deal exit.

Another sign of Russia using food as a political tool is that it may offer cheaper grain exports to countries that have not imposed sanctions. The government could get the power to lower duties on commodities exports including grain and fertilizers to “friendly” countries, Prime Minister Mikhail Mishustin said this week. 

Diplomatic efforts are still underway to persuade Russia to return to talks on the export deal from countries including South Africa, which has adopted a non-aligned stance toward the war.