Aid ship reaches Gaza coast

According to Reuters, the first ship carrying food aid reached the coast of the Gaza Strip on Friday, where hopes for a ceasefire to rescue the population from starvation suffered a new blow after Israel rejected the latest truce counter-proposal from Hamas.

The charity World Central Kitchen (WCK) aims to deliver the aid on a temporary jetty, though precise details of how supplies would reach shore have not been made clear.

If the new sea route is successful, it may help to ease the hunger crisis affecting Gaza, where hundreds of thousands of people face malnourishment and hospitals in the worst-stricken northern areas have reported children dying of starvation.

However, aid agencies have repeatedly said that plans to bring in aid by sea and through air drops will not be enough to satisfy the territory's vast needs.

Since October 2023 the Israeli assaults have killed more than 31,000 people and driven nearly the entire 2.3 million population of Gaza from their homes.

The United Nations says all of Gaza's 2.3 million people are suffering from a food crisis and a quarter of them are on the precipice of famine, especially in the north.

Israel, which sealed off all land routes into Gaza apart from two crossings on the territory's southern edge, denies blame for hunger and says aid agencies should do a better job distributing food.

The agencies say they need better access and security, both of which are the responsibility of Israeli forces that have blockaded the strip and stormed its cities.

The distribution of the limited aid that arrives has been chaotic and frequently violent under the watch of Israeli tanks.

In one of the worst reported incidents yet, Gaza health authorities reported at least 21 people had been killed and 150 wounded on Thursday night, blaming Israeli forces for opening fire into a crowd queuing up for food at a road junction near Gaza City.

There are increasing signs of friction between Washington and its close ally Israel over the conduct of the war, which officials in President Joe Biden's administration say is being waged with too little care for Palestinian civilians.

US Senate Majority Leader Chuck Schumer, the highest ranking Jewish official in the United States and a leader of Biden's Democratic Party, called on Thursday for Israelis to hold an election and replace Netanyahu.

He described Netanyahu as an obstacle to peace who was destroying Israel's international standing. "Israel cannot survive if it becomes a pariah," Schumer said.

Netanyahu's Likud Party said his policies had widespread public support. "Senator Schumer is expected to respect Israel's elected government and not undermine it," it said. "This is always true, and even more so in wartime."

 

Donald Lu to testify before Congress panel

The US House Foreign Affairs Com­mittee has tasked its Subcommittee on the Mid­dle East, Africa, and Cen­tral Asia with conducting a hearing on the future of democracy in Pakistan, scheduled for March 20.

The hearing will also delve into the dynamics of US-Pakistan relations following the February 08, 2024 general elections.

Donald Lu, the Assis­tant Secretary of State for South and Central Asian Affairs, will be the sole witness for the hearing. Lu’s alleged involvement in the cipher controversy adds significance to his testimony.

The PTI and its leader, Imran Khan, allege that Lu threatened to destabilize the PTI government during a March 2022 meeting with then Pakistani ambassador in Washing­ton, Asad Majeed Khan.

The issue is frequently brought up during US State Department news briefings by journalists from both Pakistan and the US. The department consistently dismisses these allegations as unfounded.

The decision to have Lu attend the hearing un­­derscores the departm­e­nt’s desire to resolve the controversy by providing clarification on its stance.

In a statement from Houston, Texas, the PTI’s US chapter claimed that persistent efforts by Pakistani Americans led to the much-anticipated announcement of a Congressional hearing on this.

This bipartisan hearing is expected to draw significant attendance from both Democratic and Repub­lican legislators.

 

Supply Lines: Red Sea Update

According to the Bloomberg, Red Sea shipping diversions may last a few more months, and some people think they could go on even longer.

That’s among the takeaways from the CEO of Hapag-Lloyd, the world’s No. 5 container line, in an interview Thursday on Bloomberg TV. Rolf Habben Jansen was speaking as the Hamburg, Germany-based company announced 2023 earnings that showed a steep drop in revenue and profits from a year earlier.

Houthi attacks on ships in the Red Sea have disrupted supply chains since mid-December 2023, forcing carriers to change routes and redo schedules — adjustments that have helped absorb excess capacity.

As a result, they’re burning more fuel and taking longer to deliver, with some needing to purchase more containers given the extended routes. The added costs are getting past along to customers.

The longer routes around southern Africa initially boosted spot container rates but those are coming down, Jansen said. “The services are stabilizing, which also means that the market is getting calmer.”

He indicated, though, that there’s no telling when the Red Sea will be safe enough to transit again.

“We hope that we’re going to be able to go back through in a couple of months,” Jansen said. “But I know there are also people that think that it will last quite a while longer.”

In the medium term, excess capacity may return to weigh on freight rates. Hapag-Lloyd expects the market to remain difficult for carriers given the large number of ship deliveries this year, Jansen said in the company’s 2023 annual report.

Sharing that view was Zim Integrated Shipping CEO Eli Glickman, who spoke on a conference call on Wednesday. “Once the Red Sea crisis is resolved, we will likely revert to the supply-demand scenario that began to play out in ‘23, setting up a more challenging third and fourth quarter of 2024 for the industry, including us,” he said.

It’s not just the shipping companies facing a tough environment. World Trade Organization Director-General Ngozi Okonjo-Iweala told Bloomberg in an interview that “the risks are all on the downside.”

But corporate supply chains have gotten more resilient and flexible. Here’s a rundown of comments that a few big shippers and a major port operator have offered this week:

Samsonite CFO Reza Taleghani: “So if you think about things you read about in the news, shipping delays, Red Sea, et cetera, we are just fine. We have inventory exactly where we need it to be. All of our facilities, even if there is a week or two delays, not that big of a deal.”

Adidas CEO Bjorn Gulden: “We have a little bit of headwind in freight in the first half because of the Red Sea situation, and as you know, if the freight companies have a chance to do something they increase prices. That should normalize and then the rest of everything that has to do with margin is going in the right direction.”

Williams-Sonoma CEO Laura Alber: “When a problem comes along, they’re real. The Red Sea disruption is pretty terrible. However, it is not costing us any more money. So far it is costing us about 10 days of delivery, give or take. And as I mentioned last time, we padded the deliveries to our customers once we heard about it, so we didn't disappoint them.”

DP World Group Chairman Sultan Ahmed bin Sulayem: “Despite the uncertain start to 2024 with the ongoing Red Sea crisis, our portfolio has continued to demonstrate resilience. The outlook remains uncertain due to the challenging geopolitical and economic environment.”

 

Iranian oil output exceeds 3 million bpd

The US Energy Information Administration (EIA) in a report put Iran’s oil output at 3.2 million barrels per day (bpd) for February 2024.

According to the report OPEC’s total output during the month under review was up 170,000 bpd to 26.47 million bpd.

OPEC’s latest monthly report, however, has put Iran’s crude oil production at 3.148 in February, noting that the Islamic Republic maintained its place as OPEC’s third-biggest oil producer in the month.

According to the mentioned report, the price of Iran’s heavy crude increased by 20 cents in February to reach US$80.34 per barrel.

The director of the National Iranian Oil Company (NIOC) Explorations Department has said the country’s oil explorations registered a 300 percent growth in two years of the administration of President Ebrahim Raisi, who assumed office in August 2021.

Mehdi Fakour said the oil explorations have shown a considerable increase in various sectors as compared to the past five years, Mehr News Agency reported.

He added that the oil explorations made in the first two years of the current administration have registered a 300 percent hike.

The feasibility studies of some explorations have started in the country, he said, adding that negotiations have been made with a number of industrial production companies.

Currently, the oil exploration activities in the country are at a satisfactory level, Fakour added.

Earlier, the Head of the National Iranian Oil Company Mohsen Khojasteh Mehr said that the company has a 100-year vision for exploration, emphasizing that the company is determined to carry out maximum exploration operations to discover and maintain the country’s reserves.

Back in February, the International Monetary Fund in a report on Iran’s microeconomic indicators said the increase in Iran’s oil production in 2023 exceeded expectations.

The fund attributed the increase in its estimate of Iran's economic growth in the mentioned year to the higher-than-expected increase in the country’s oil production.

According to the new estimates of this international entity, Iran's economic growth in 2023 reached 5.4 percent, registering a significant increase compared to the previous year.

The International Monetary Fund had previously estimated that Iran's economic growth would reach only 3.0 percent in 2023.

Iran's crude oil exports grew by roughly 50 percent in 2023 to a five-year high of about 1.29 million bpd, with the vast majority going to China, according to Nikkei Asia.

The report, citing the International Energy Agency (IEA), put Iran’s oil production at 2.99 million bpd last year, 440,000 barrels more than in 2022.

As reported, IEA predicts a further rise of 160,000 barrels of Iran’s oil exports in 2024.

This increase is expected to contribute to a less tight market, alongside increases by the US and Brazil. The IEA sees global supply rising by 1.5 million bpd to an all-time high this year.

 

Pakistan: Saga of Financial Challenges

Once hailed as a financial wizard, Ishaq Dar's return to Pakistan was accompanied by grandiosity, with a Red Carpet reception. However, the same individuals who celebrated Dar's financial prowess are now touting Muhammad Aurangzeb as a savior capable of instantly resolving Pakistan's myriad issues. While Aurangzeb may possess exceptional banking skills, his comprehension of Pakistan's complex economic landscape raises doubts.

Adding to the skepticism is his hefty monthly salary of US$100,000, amounting to a staggering US$1.2 million annually. Despite decades under the IMF microscope, Pakistan struggles to generate sufficient dollars to finance its imports, with around US$150 billion from overseas Pakistanis disappearing into a financial abyss over the last five years.

The finance minister's primary task now is to persuade the lender of last resort to release more dollars, settling outstanding loans and facilitating imports, particularly for the elite. The proposed solutions involve increasing electricity and gas tariffs, raising interest rates, and imposing additional duties and taxes, collectively squeezing every Pakistani financially.

Financial wizards argue that these measures will bridge the budget deficit, but they overlook the resultant surge in government borrowing and the negative impact on local manufacturers' competitiveness. This situation brings to mind the saying, "An expert is a person who makes things complicated." Pakistanis are inundated with advice on improving taxes, but there's a glaring absence of plans to tax those enjoying exemptions since independence, and austerity measures are conspicuously lacking.

As Pakistan rushes into talks with the IMF, concerns persist about addressing GDP growth, boosting exports, and curbing extravagance. The impending debt servicing crisis looms large, and while the IMF may greenlight a larger and extended standby program, the real question lies in whether policymakers have viable strategies to maintain debt servicing at a sustainable level.

Iran-China-Russia naval drill in Indian Ocean

The navies of Iran, China, and Russia have initiated joint drills in the northern tip of the Indian Ocean, marking their fifth collaborative military exercise in recent years. Naval delegations from Azerbaijan, Kazakhstan, Oman, Pakistan, and South Africa are present as the observers of the exercises.

Chinese and Russian naval forces have entered Iranian territorial waters to participate in the primary stage of the naval war game, named Maritime Security Belt 2024, near the Gulf of Oman. This international exercise, involving Iran, China, and Russia, underscores a commitment to peace and security in the region.

During a joint press conference with Russian and Chinese commanders, Second Flotilla Admiral Mustafa Taj al-Dini emphasized the strategic significance of this being the fifth joint exercise among the involved countries. He highlighted the objectives of this joint naval drill, including bolstering maritime trade security, combating piracy and terrorism, and fostering cooperation among the participating nations.

According to Taj al-Dini, this security-focused exercise, covering an expansive area of 17,000 square kilometers, aims to address multifaceted challenges. Despite the approaching festivities for the Persian New Year, the spokesperson underscored that security efforts remain steadfast.

Notably, naval units from Iran, China, and Russia, comprising destroyers and missile cruisers, actively contribute to this collaborative initiative.

Iranian naval forces, along with their Chinese and Russian counterparts, have conducted several military drills in recent years to enhance the security and stability of international maritime trade. They have also collaborated in countering piracy and maritime terrorism, exchanging information in naval rescue and relief operations, as well as sharing operational and tactical experiences.

Russia's defense ministry stated that the exercises, running through Friday and involving warships and aviation, would focus on the protection of maritime economic activity.

The Russian defence ministry said its Pacific fleet, led by the Varyag guided missile cruiser and the Marshal Shaposhnikov frigate, had arrived at Iran’s Chabahar port on Monday to take part in the joint drill.

China’s defense ministry mentioned that the drills aimed at jointly maintaining regional maritime security. China sent its 45th escort task force, consisting of the guided-missile destroyer Urumqi, guided-missile frigate Linyi, and the comprehensive supply ship Dongpinghu, to the exercise.

Last month, Rear Admiral Shahram Irani, commander of the Iranian Navy, announced Tehran's plan to hold joint drills with Beijing and Moscow before the end of March, aimed at ensuring regional security.

Providing insights into the strategic maritime efforts, the rear admiral revealed that the mission to safeguard Iran's shipping lines in international waters commenced in 2009 under the direct command of the Leader of the Islamic Revolution, Ayatollah Seyyed Ali Khamenei.

Emphasizing the unwavering commitment of the Army's strategic naval force, he highlighted their continuous role in ensuring the security of the nation's economic hub in both the Gulf of Aden and the northern Indian Ocean.

The admiral further highlighted the expansion of the security mission beyond securing shipping lines in the Red Sea over the past four years. Currently, the comprehensive management of protection for Iran's shipping lines extends from the Gulf of Aden to the Suez Canal.

The Iranian Navy conducts routine exercises throughout the year. In recent years, Iranian military experts and technicians have made significant progress in developing and manufacturing a diverse range of military equipment, achieving self-sufficiency for the armed forces in the military industry.

In March 2023, Iranian, Chinese, and Russian naval forces staged the 2023 Marine Security Belt war game in the northern parts of the Indian Ocean, marking the fourth joint exercise in recent years. Alongside Chinese and Russian fleets, more than 10 Iranian Navy vessels and three helicopters reportedly took part.

 Courtesy Tehran Times

Iran grain production exceeds 21 million tons

The UN Food and Agriculture Organization (FAO) in a report said Iran has produced more than 21 million tons of grain in the 2023 Crop Year and holds the fourth largest grain reserves in Asia.

In its latest report on the “Outlook of Food Products and Situation”, FAO put the total volume of grain produced in Iran in 2023 at 21.1 million tons, showing a more than two percent hike compared to a year earlier.

According to this report, Iran produced over 13 million tons of wheat in 2022 and 13.5 million tons in 2023.

Rice production also reached 3.5 million tons in the current year, without any changes compared to the previous crop year.

FAO has put Iran's total cereal stocks at 12.1 million tons in the current year, registering a 100,000-ton increase compared to the previous year.

With this volume of stocks, Iran has ranked fourth in the world. China has been ranked number one with 399 million tons of cereal stocks. India with 64 million tons and Turkey with 12.7 million tons have taken the second and third places respectively.

Back in May 2023, FAO released a report in which Iran was ranked 43rd in the world in terms of food imports despite being the 17th most populous country in the world.

The UN entity’s statistics show that industrialized countries were the largest importers of food products in the world.

According to the organization, Iran currently stands among the world’s top producers of agricultural products.