Israel faces worst diplomatic isolation

Israel announced its worst combat losses for more than a month on Wednesday after an ambush in the ruins of Gaza City, and faced growing diplomatic isolation as civilian deaths mounted and a humanitarian catastrophe worsened.

Intense fighting was under way simultaneously in the north and south of the enclave, a day after the United Nations demanded an immediate humanitarian ceasefire.

US President Joe Biden said Israel's indiscriminate bombing of civilians was costing international support.

Warplanes again bombed the length of Gaza and aid officials said the arrival of rainy winter weather worsened the conditions for hundreds of thousands of families sleeping rough in makeshift tents. The vast majority of Gaza's 2.3 million people have already been made homeless.

Israel reported ten of its soldiers killed in the past 24 hours, including a full colonel commanding a forward base and a lieutenant-colonel commanding a regiment. It was the worst one-day loss since 15 were killed on October 31.

Most of the deaths came in the Shejaiya district of Gaza City in the north, where troops were ambushed trying to rescue another group of soldiers who had attacked fighters in a building, the military said.

Hamas said the incident showed that Israeli forces could never subdue Gaza. "The longer you stay there, the greater the bill of your deaths and losses will be, and you will emerge from it carrying the tail of disappointment and loss, God willing."

In the south, Israeli forces storming Khan Younis advanced in recent days to city centre. Residents said there was heavy fighting there but no further attempts to advance in the last 24 hours.

“The Israeli tanks have not moved further from the centre of the city. They are facing fierce resistance and we hear the exchanges of fire, explosions too,” Abu Abdallah, a father of five who lives 2 km away, told Reuters.

The Israelis had brought bulldozers and were destroying the road near the Khan Younis home of the Hamas leader in Gaza, Yahya Al-Sinwar, Abu Abdallah said.

International agencies say the limited aid reaching Gaza is being distributed only in parts of Rafah near the Egyptian border. Even there, the situation has become far more extreme this week.

Gemma Connell, based in Rafah as Gaza team leader for the UN humanitarian office OCHA, told Reuters in a message. Heavy rains and winds overnight are awful for all of these people in makeshift shelters.

Israel says it has been encouraging increased aid to Gaza through Egypt's border, and is announcing daily four-hour pauses in operations near Rafah to help civilians reach it. The UN says cumbersome inspections and insecurity have slowed aid to a trickle.

The UN General Assembly vote demanding a ceasefire has no legal force but was the strongest sign yet of eroding international support for Israel's actions. Three-quarters of the 193 member states voted in favour and only eight countries joined the United States and Israel in voting against.

Before the vote, Biden said Israel still has support from "most of the world" for its fight against Hamas.

"But they're starting to lose that support by indiscriminate bombing that takes place," he told a campaign donor event.

In the most public sign of division between the US and Israeli leaders so far, Biden said Prime Minister Benjamin Netanyahu needed to change his hardliner government, and that ultimately Israel can't say no to an independent Palestinian state, opposed by far-right members of the Israeli cabinet.

Israel and US cannot wipe out Hamas

Iranian Foreign Minister Hossein Amirabdollahian said on Tuesday that Israel and the United States will never be able to wipe out Hamas and that Israel could only secure the release of hostages held in Gaza with a political solution to the conflict.

In a speech at the United Nations in Geneva in which he described the Islamist group as a freedom movement, Amirabdollahian said, "Israel and the United States will never be able to eliminate Hamas."

He added that Israel, which has vowed to wipe out Hamas, could only achieve the return of hostages taken by Hamas on October 07 by a political solution.

Amirabdollahian was speaking at a meeting alongside counterparts from other Middle Eastern countries.

"All the ministers agree that the strikes by the criminal Israeli regime and the genocide it is committing has to stop immediately," Amirabdollahian said following the meeting.

"The Rafah border crossing has to be open, humanitarian aid has to reach every part of Gaza and the forced displacement of the people of Gaza must stop," he added, referring to the crossing into Egypt used to bring humanitarian aid into the enclave.

Israel's assault on Gaza to root out Hamas has killed at least 18,205 Palestinians and wounded nearly 50,000 since October 07, according to the Gaza health ministry.

Iran's Supreme Leader Ayatollah Ali Khamenei appealed last month to Muslim states with political ties with Israel to at least cut them for a limited time. He had previously called for an Islamic oil and food embargo on Israel.

 

Saudi Aramco acquires stake in Pakistani company

Reportedly, Saudi Aramco has acquired a 40% stake in Gas & Oil Pakistan (GO Petroleum). This is the second major development in Pakistan’s oil marketing space this year - both led by Saudi Arabia - with Wafi Energy earlier entering into a share purchase agreement to buy Shell Pakistan (SHEL PA).

Incorporated in 2015, GO Petroleum retails fuels and lubricants, backed by about 1,100 outlets and a storage capacity of 200,000 tons. It is the 2nd largest oil marketing company in Pakistan in terms of retail outlets. However, its market share has fluctuated between 6 to 8 percent in the last three years, making it smaller than SHEL and APL. The industry leader remains PSO (enjoying market share of 50%).  

Although, pricing details have not been divulged as yet, according to Pakistan’s leading brokerage house, Intermarket Securities the assessed intrinsic value of US$200 million for SHEL to tentatively price the GO deal.

Given GO’s smaller market share, including in the lubricants business and the lack of a brand value comparable to SHEL, the brokerage house takes the deal price between US$100 million to US$150 million.

A 40% stake at this valuation range translates to US$40 million to US$60 million.

The brokerage house estimates that Vitol Dubai has a 10% share in GO Petroleum but it is unclear at this point if this is part of the 40% stake being acquired by Aramco.

It is likely but not certain that Aramco will take over management rights.

The GO Petroleum deal will be Aramco’s first investment in Pakistan, and comes on the heels of its earlier moves to acquire Valvoline’s global operations and Chile’s Esmax Distribution SpA.

The GO Petroleum investment will likely be very small in comparison to these other overseas downstream ventures. This leads analysts to think it may well represent a testing of the waters, with Aramco reportedly also interested in setting up a mega refinery project in Pakistan.

If GO Petroleum expands rapidly it could eat into the existing market shares of competitors. At present, given its major presence on motorways and the North region, GO primarily competes with HASCOL and APL, while urban centers are dominated by PSO and SHEL.

A possible expansion into the South region will impact the latter two companies more.

 

Israel uses US-supplied white phosphorus in Lebanon

In an exclusive report on Monday, the Washington Post revealed that the Israeli army used white phosphorus munitions supplied by the United States in Dheira, southern Lebanon, in October.

Following is an excerpt of the report:

Israel used US-supplied white phosphorus munitions in an October attack in southern Lebanon that injured at least nine civilians in what a rights group says should be investigated as a war crime.

A journalist working for The Post found remnants of three 155-millimeter artillery rounds fired into Dheira, near the border of Israel, which incinerated at least four homes, residents said. The rounds, which eject felt wedges saturated with white phosphorous that burns at high temperatures, produce billowing smoke to obscure troop movements as it falls haphazardly over a wide area. Its contents can stick to skin, causing potentially fatal burns and respiratory damage, and its use near civilian areas could be prohibited under international humanitarian law.

Lot production codes found on the shells match the nomenclature used by the US military to categorize domestically produced munitions, which show they were made by ammunition depots in Louisiana and Arkansas in 1989 and 1992. The light green color and other markings — like “WP” printed on one of the remnants — are consistent with white phosphorous rounds, according to arms experts.

The weapons are part of billions of dollars in US military arms that flow to Israel every year, which has fueled Israel’s war on Hamas in the Gaza Strip, launched after the militants attacked on October 07.

At least 17,700 people, many of them civilians, have been killed since the Israeli operation began, according to the Gaza Health Ministry.

Tensions along Lebanon’s southern border between Israeli forces and Hezbollah have boiled over from a simmer to near-daily exchanges of fire in the weeks since October 07.

Dheira, a town of 2,000, has become a focal point for fighting. Just across the border from an Israeli radar tower, it has been used as a staging ground for Hezbollah’s attacks against Israel.

At least 94 people have been killed on the Lebanese side of the border since tensions escalated, according to data released on December 05 by the Health Ministry — 82 have been militants, according to Hezbollah. In addition, at least 11 Israelis have been killed, most of them soldiers.

Photos and videos verified by Amnesty International and reviewed by The Post show the characteristic ribbons of white phosphorus smoke falling over Dheira on October 16.

Israeli forces continued to shell the town with white phosphorus munitions for hours, residents said, trapping them in their homes until they could escape around 7.00 am the next morning. Residents now refer to the attack as the black night.

Most fled the town when the shelling stopped, returning during a week-long pause in fighting and leaving again when it resumed.

Uday Abu Sari, a 29-year-old farmer, said in an interview that he was trapped in his home for five hours during the shelling and was unable to breathe because of the smoke. He suffered respiratory problems for days after the attack.

“Emergency services told us to put something that was soaked in water on our faces, which helped a bit. I couldn’t see my finger in front of my face,” he said. “The whole village became white.”

White phosphorus ignites when in contact with oxygen and burns at temperatures up to 1,500 degrees, which can cause severe injuries. The chemicals left in the body can damage internal organs, sometimes fatally, according to a Human Rights Watch report.

The US origin of the shells was verified by Human Rights Watch and Amnesty International. The same manufacturing codes also appear on white phosphorus shells lined up next to Israeli artillery by the city of Sderot, near the Gaza Strip.

The United States is under an obligation to track the behavior of its partners and allies who receive its assistance in order to comply with US law, humanitarian law experts said. The use of white phosphorus smoke is permitted if used for legitimate military operations, but like other weapons, its misuse can violate laws of armed conflict. Rights groups have warned its use should be restricted around civilians because fire and smoke can be spread to populated areas.

“The fact that US-produced white phosphorus is being used by Israel in south Lebanon should be of great concern to US officials,” Tirana Hassan, the executive director of Human Rights Watch, wrote in an email. “[Congress] should take reports of Israel’s use of white phosphorus seriously enough to reassess US military aid to Israel.”

 

Israel trying to clear Palestinians from Gaza

Philippe Lazzarini, Commissioner General of the UN agency for Palestinian refugees, said Israel appears to be trying to clear Gaza of its Palestinian population through its military offensive and evacuation orders.

“The developments we are witnessing point to attempts to move Palestinians into Egypt, regardless of whether they stay there or are resettled elsewhere,” he wrote in the Los Angeles Times.

On Sunday, Jordanian Foreign Minister Ayman Safadi also accused Israel of being determined to push Palestinians out of Gaza.

“We are seeing a systematic effort, it seems to empty Gaza from its people,” he said at a conference in Doha, Qatar.

Eylon Levy, an Israeli government spokesperson, called the allegations outrageous and false.

Israel has said it is prepared to fight for months or longer to defeat Gaza's Hamas rulers, as its ground offense intensifies with more airstrikes and artillery fire.

On Monday, the Israeli army announced that 101 soldiers had been killed so far in the military offensive which began on 27 October.

Qatar, which has played a key mediating role between the warring parties, says efforts to stop the war and have all hostages released will continue, but a willingness to discuss a ceasefire is fading.

Israel faces international outrage after its military offensive killed more than 17,700 Palestinians in Gaza, around two-thirds of them women and children, according to the Hamas-controlled Health Ministry.

About 90% of Gaza’s 2.3 million people have been displaced within the besieged territory, where UN agencies say there is no safe place to flee.

With only a trickle of humanitarian aid reaching a small portion of Gaza, residents face severe shortages of food, water and other basic goods.

Panama Canal drought to delay grain ships

According to Reuters, bulk grain shippers hauling crops from the United States Gulf Coast export hub to Asia are sailing longer routes and paying higher freight costs to avoid vessel congestion and record-high transit fees in the drought-hit Panama Canal.

The shipping snarl through one of the world's main maritime trade routes comes at the peak season for US crop exports, and the higher costs are threatening to dent demand for US corn and soy suppliers that have already ceded market share to Brazil in recent years.

Ships moving crops have faced wait times of up to three weeks to pass through the canal as container vessels and others that sail on more regular schedules are scooping up the few transit slots available.

The restrictions could continue to impede grain shipments well into 2024 when the region's wet season may begin to recharge reservoirs and normalize shipping in April or May, analysts said.

"It's causing quite a disruption both in expense and delay," said Jay O'Neil, proprietor of HJ O'Neil Commodity Consulting, adding that the disruption is unlike any he's seen in his 50 years of monitoring global shipping.

The Panama Canal Authority restricted vessel transits this autumn as a severe drought limited supplies of water needed to operate its lock system. The Authority did not respond to request for comment on grain shipment delays.

Only 22 daily transits are currently allowed, down from around 35 in normal conditions. By February, transits will shrink further to 18 a day.

Grain ships are often at the back of the line as they usually seek transit slots only a few days before arriving, while others like cruise and container ships book months in advance.

The Authority also offers the rare available slots to its top customers first, none of which are bulk grain haulers, O'Neil said.

Any scheduled slots that come available are auctioned off, but demand is exceptionally high. Some slots have gone for US$ one million or more, untenable costs for the traditionally thin-margin grain trading business.

"The grain trades and the bulk carrier segment are going to be the last customers to go through the Panama Canal. I would not rely on the Panama Canal any time soon," said Mark Thompson, senior trader at Olam Agri.

Wait times for bulk grain vessels ballooned from around five to seven days in October to around 20 days by late November, O'Neil said, prompting more grain carriers to reroute.

Options include sailing south around South America or Africa, or transiting the Suez Canal. But those longer routes can add up to two weeks to shipping times, elevating costs for fuel, crews and freight leases.

While grain prices have fallen from 2020 peaks, higher freight costs will be passed on to grain and oilseed importers who buy for human food and livestock feed.

"Commercial companies have been finding ways to navigate around the problem. But undoubtedly it costs the end-user more money," said Dan Basse, president of Chicago-based consultancy AgResource Co.

In the second half of October, only five US Gulf grain vessels bound for East Asia transited the Panama Canal, while 33 sailed east to use the Suez Canal instead, according to a US Department of Agriculture (USDA) report. In the same period last year, 34 vessels used the Panama Canal while only seven used the Suez.

Some US exporters have also been rerouting crop shipments to Asia to load from Pacific Northwest ports instead. But that, too, comes at a higher cost as those facilities source grain mostly via rail as opposed to the cheaper barge-delivered loads supplying Gulf Coast exporters.

Only 56.8% of all US corn exports in October were shipped from Gulf Coast ports this year, down from 64.9% in October 2022 and 72.1% in October 2021, according to USDA weekly export inspections data.

 

 

 

Bangladesh starts using Chinese crude oil handling facility

Bangladesh has started using a large crude oil receiving and offloading facility built by China. This allows the south Asian oil importer to significantly reduce the cost of crude oil handling, reports Reuters.

The single-point mooring facility at Chattogram port recently offloaded 82,000 tons (about 600,000 barrels) crude oil from a 100,000-ton tanker, said an official with state-run Bangladesh Petroleum Corp (BPC).

The project is majority-funded by the Chinese government and build by a unit of Chinese state oil major CNPC.

Bangladesh, which imports most of its oil needs, does not have a deepwater port and has relied on small vessels to ship crude oil from large tankers parked outside ports.

That typically takes 11 days to offload a 100,000 ton oil cargo and the new facility cuts the offloading time to 48 hours, the official said.

An engineering unit of state major CNPC began in 2019 building the offloading facility financed by Export-Import Bank of China which offers preferential loans.

The new facility is expected to facilitate the planned expansion of Bangladesh's only refinery to 3 million tons per year (60,000 barrels per day) from 1.5 million tons per year currently.