Friday, 13 December 2024

Syria to face Libya or Sudan like situation

In a commentary published on December 09, 2024, a Middle East security expert at Princeton University says once the Syrian opposition gets rid of their common enemy and the process of shaping the future begins, their differences will surface, and it remains uncertain how reconcilable these differences will be. Even if there are no internal disagreements among the opposition, their conflicts with the Kurds and Turkey's stance on this issue alone pose a major obstacle to establishing a consensus-based order. This could keep Syria in a prolonged political and security crisis, similar to Libya and Sudan.

Following is the text of the article:

The Baathist system in Syria, after nearly 60 years of rule, has been overthrown and Bashar al-Assad has fled to Moscow. Syria stood alongside Iran during its invasion by Saddam Hussein, and Iran, in turn, stood with the Syrian and Iraqi governments during the assault by the Islamic State (IS) group and al-Qaeda on Syria and Iraq from 2011 to 2017.

The alliance of Russia, Iran and the Axis of Resistance led to the defeat of militant groups and the preservation of the sovereignty of these two Arab countries. However, at the same time, Assad's government had no alignment with democracy, and western and Arab leaders were fearful and angry about the extensive presence and influence of Iran and Russia in Syria. In any case, the overthrow of the Syrian political system has created a major shift in the region's geopolitics.

In the short term, Iran, Russia, Iraq and the Axis of Resistance will be the main losers from Assad's downfall. The collapse of the Assad government will be a major blow to the axis, weakening Iran's geopolitical influence in the region.

Syria has been the only land route for the supply and transfer of weapons to Hezbollah, and cutting off this route not only creates a strategic challenge for Hezbollah but also weakens Iran's leverage in the Palestinian issue. Moreover, the potential spread of insecurity to Iraq and Iran - and the weakening of Iran's diplomatic support - are significant consequences for Iran and the axis.

Turkey main winner

The fall of the Syrian government could also pose threats to Iraq's security, both in terms of the Kurdish region and from the aspirations of extremist groups for Sunni-majority areas in the country, as well as the potential activation of IS sleeper cells.

In the short term, Israel might find an opportunity to further weaken Hezbollah and the axis in the entire region. However, the activities of new Islamist armed groups at its borders, the rise of Islamist movements and the potential impact on Syria's future stance on the Palestinian issue and the occupied Golan Heights could increase long-term national security threats for Israel.

In the short term, the US and the West will be winners because the fall of Assad will significantly reduce Russian and Iranian influence in the region.

However, the Islamist group that seized Damascus and toppled Assad, Hay'at Tahrir al-Sham (HTS), was proscribed as a terror organization by the Britain in 2017 and the US in 2018 because of its links to al-Qaeda. HTS is led by Abu Mohammad al-Jolani (real name Ahmed al-Sharaa), who was designated a terrorist by the US in 2013.

It is uncertain how the collapse of Syria's secular government and the rise of Islamists will impact the long-term interests of the US, with the differing perspectives between the US and Turkey on the Kurdish issue, the ambiguity surrounding the future actions of the opposition and the prospect of increasing instability in the region.

Turkey is the main winner. Ankara may hope to resolve the Syrian refugee crisis in Turkey, exert more effective control over the Kurds and strengthen its role in the Palestinian issue, as well as cement alliances with like-minded groups in the region.

While Arab countries are also pleased with the reduction of Iran's influence in Syria, the military operations of HTS and other militant groups were managed and organied by Turkey, all of which have an affiliation with the Muslim Brotherhood.

Several Arab countries, such as Egypt, Saudi Arabia, the UAE and Jordan, are opponents of the Muslim Brotherhood and its ideology. Therefore, Turkey's power projection in the region and the Brotherhood's potential future dominance in Syria could be perceived as a new threat by some Arab countries.

Regarding the political future of Syria, two scenarios can be imagined: a peaceful transition to a new system; or a Libyan and Sudanese-style outcome.

A peaceful transition could be achieved if the opposition continues with its moderate rhetoric and actions. However, it is composed of diverse and fragmented groups that have united solely to eliminate a common enemy.

Once this shared enemy is removed and the process of shaping the future begins, their differences will surface, and it remains uncertain how reconcilable these differences will be.

Even if there are no internal disagreements among the opposition, their conflicts with the Kurds and Turkey's stance on this issue alone pose a major obstacle to establishing a consensus-based order. This could keep Syria in a prolonged political and security crisis, similar to Libya and Sudan.

Another important factor is the conflicting interests of the many external actors, who will each try to increase their influence over Syria's situation in various ways.

In any scenario, future developments in Syria will have a significant impact on the region's geopolitics. Therefore, finding a solution that is acceptable to both regional and global powers is crucial.

In April 2017, at the Carnegie Conference in Washington, I proposed 10 principles for resolving the Syrian crisis: 1) Resolving the Syrian crisis through diplomacy, not war; 2) A face-saving solution for all the main parties involved;  3) Serious and collective cooperation to eradicate terrorism from Syria; 4) Preserving Syria's territorial integrity and sovereignty; 5) Preventing the collapse of the Syrian army and security institutions; 6) Forming an inclusive government in Syria; 7) Building a new Syria based on the will and vote of the majority of the Syrian nation; 8) Ensuring the protection of minorities in Syria; 9) Holding free elections under the supervision of the United Nations regarding the new government and constitution of Syria; 10) A comprehensive package of economic aid for Syria's reconstruction, the return of refugees, and other humanitarian issues.

Although there was no receptive ear for these ideas at that time, today, these 10 principles could still be a comprehensive and sustainable package to resolve the Syrian crisis.

Courtesy: Tehran Times

Saudi Arabia blames veto power abuse

Ambassador Abdulaziz Al-Wasil, Saudi Arabia’s permanent representative to the United Nations, criticized the abuse of veto power and reiterated the Kingdom’s call for a ceasefire in Gaza while addressing the United Nations General Assembly’s (UNGA) 10th emergency special session on Palestine.

The session focused on two key resolutions: one supporting the mandate of the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) and the other demanding a ceasefire in Gaza.

He also welcomed the ceasefire in Lebanon, condemning Israeli violations of the agreement, and emphasized the importance of UNRWA's role while denouncing Israeli actions against the agency, including targeted legislation and efforts to undermine its mandate.

The ambassador highlighted Saudi Arabia’s steadfast support for the Palestinian people, advocating for peace based on the two-state solution, the Arab Peace Initiative, and international legitimacy resolutions.

He called for active participation in the high-level international conference on resolving the Palestinian issue, which Saudi Arabia and France will co-chair in June in New York.

Al-Wasil also condemned Israeli attacks on Syrian territories, stressing that these violations undermine Syria’s stability and sovereignty.

He reaffirmed the Arab and Syrian identity of the occupied Golan Heights and condemned Israel’s continued disregard for international law.

During the session, the Saudi delegation voted in favor of both resolutions. The resolution supporting UNRWA’s mandate was adopted with 159 votes in favor, 9 against, and 11 abstentions. The resolution demanding a ceasefire in Gaza received 158 votes in favor, 9 against, and 13 abstentions.

The ambassador reaffirmed Saudi Arabia's commitment to promoting peace, condemning aggression, and supporting the Palestinian cause.

 

PSX benchmark index up 5%WoW

Pakistan Stock Exchange (PSX), despite experiencing volatility recorded a hefty increase of 5,248 points in benchmark index. Market closed at another high of 114,302 points, marking an increase of 5%WoW on Friday, December 13, 2024.

With the CPI remaining below the 5% threshold and T-Bills yields in the recent auction dropping to 12% for the 3-months and 6-months paper, down 100bps and 89bps respectively, investors’ optimism has been bolstered, fueling expectations for continued monetary easing in the upcoming (MPC) meeting scheduled for December 16, 2024.

The news about potential imposition of additional tax on banks put the sector under pressure.

Automotive industry sales for November 2024 were reported at 13,856 units, up 37%YoY.

Workers’ remittances grew to US$2.9 billion, up 29.1%YoY.

Foreign exchange reserves held by the State Bank of Pakistan (SBP) increased by US$13 million to US$12.0 billion as of December 06, 2024.

Average daily trading volume declined by 19.0%WoW to 1.4 billion shares, from 1.7 billion shares traded in the earlier week.

PKR remained stable against the greenback, closing the week at PKR278.12 to a US$.

Other major news flow during the week included: 1) assets under management mutual funds exceeded PKR3 trillion mark, 2) Petroleum Division will soon start issuing notices to CPPs for disconnecting gas supply, 3) Punjab government to give free solar panels to 100,000 households, 4) National Savings reduces profit rates by up to 250bps and 5) PAF announced to buy PIA engineering unit for PKR6.5 billion.

Oil & Gas Exploration companies, Mutual Funds, Oil & Gas Marketing Companies, Refinery and Miscellaneous were amongst the top performers, while Commercial Banks, Modarabas, Textile Spinning, Synthetic & Rayon and Automobile Parts & Accessories were amongst the laggards.

Major selling was recorded by Brokers with a net sell of US$3.3 million, while Mutual Funds absorbed most of the selling with a net buy of US$8.6 million.

Top performing scrips of the week were: MARI, SHEL, ATRL, NML, and PSO, while laggards included: ABL, BAFL, MEBL, BAHL and BOP.

Continuation of monetary easing due to disinflationary environment and improving macroeconomic environment would make investment in equities more appealing, currently trading at P/E of 5.7x and DY of 8.7%.

Aforementioned factors, along with declining external financing requirement under the IMF program, would keep foreigners’ interest alive.

AKD Securities recommends sectors that benefit from monetary easing and structural reforms. However, modest economic recovery may limit the upside for cyclicals.

Top picks of the brokerage house include, OGDC, PPL, MCB, HBL, FFC, PSO, LUCK, MLCF, FCCL and INDU.

 

Thursday, 12 December 2024

Iran to lose oil sales to Syria

According to Argus, the removal of Syrian president Bashar al-Assad from power over the weekend has not only dealt a major blow to Iran and its designs for the Levant region, but it has also eliminated a critically important outlet for Tehran's sanctions-hit oil. Iran produced around 3.33 million bpd during September-November.

Long considered Iran's top Arab ally, Assad enjoyed significant military and economic support from Tehran over the past decade, as Iran saw him as the focal point for its regional influence. Syria also provided the main supply routes to Lebanon's Hezbollah militia, the crown jewel in Iran's so-called ‘Axis of Resistance'.

Part of Iran's assistance was in the form of shipments of crude and refined oil products to help Assad's regime meet fuel demand in the areas under its control.

Once more than a 600,000 barrels per day (bpd) producer, Syria's crude output has been on the decline over the past three decades. Just before the start of the civil war in 2011, production had already slipped below 400,000 bpd. lately, it was less than 100,000 bpd, and only around 16,000 bpd of that comes from fields in areas under the former government's control.

This left Assad's regime — itself restricted by western sanctions — critically short of crude to feed its two refineries in Banias and Homs, even though both have been operating below capacity because of damage sustained during the civil war.

Iran helped plug the gap by sending crude and products to the 140,000 bpd Banias refinery on Syria's Mediterranean coast on an ad hoc basis.

Iranian crude exports to Syria averaged around 55,000 bpd in January-November this year, down from 80,000 bpd in 2023 and 72,000 bpd in 2022, according to data from trade analytics firm Kpler.

Vortexa puts shipments higher at 60,000 to 70,000 bpd so far this year and 90,000 bpd in 2023. Iran has also been sending around 10,000 to 20,000 bpd of refined products to Syria in recent years, according to consultancy FGE. Iran's oil exports to Syria have mostly been in the form of grants to support the Assad regime. The government's collapse could put an end to these flows for the time being, while Tehran takes a wait and see approach to what comes next in Syria.

The first sign of that came over the weekend when the Iran-flagged Lotus, which left Kharg Island on November 11, destined for Banias, reversed course just as it was about to enter the Suez Canal. The tanker is now headed back through the Red Sea without specifying a destination.

Although supplies to Syria make up a very small share of Iran's overall 1.6 million to 1.8 million bpd of crude exports, Tehran may not want to lose it as an outlet for good, given the difficulties of finding a replacement while sanctions remain in place.

"The flow will stop, at least for the time being," said Iman Nasseri, managing director for the Middle East at FGE.

Iran will want to continue supplying this oil to Syria, or else it may be forced to cut production by anywhere between 50,000 to 100,000 bpd if it is unable to ultimately place those barrels in China. Alternatively, Iran could opt to build the volumes it holds offshore in floating storage.

"We usually see the same tankers shuttling between Iran and Syria," according to Vortexa's senior oil analyst Armen Azizian. "If that trade subsides, we could see some of these tankers unemployed or put into floating storage, which would rise, at least in the short-term," he said.

Lotus is one of these tankers, having made the trip to Syria and back five times in 2023, and twice so far in 2024. The crude cargo it is carrying now "could be returned to Iran and put into onshore tanks or go into floating storage off Iran," Azizian said.

 

What Ayatollah says on fall of Assad regime?

Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei directly addressed thousands of Iranians from different walks of on Wednesday. He spoke on current regional matters, particularly the latest developments in Syria.

Syrian President Bashar al-Assad’s government collapsed on Sunday after his army refrained from countering a new terror insurgency that began in the country’s northwestern Aleppo region.

Here are seven questions Ayatollah Khamenei answered on Syria during his Wednesday remarks:

1. Who is behind the latest resurgence of terrorism in Syria?

A neighbor of Syria has been involved. But the main architects have been the US and Israel

2. How did the US and Israel aid terrorists in their offensive?

A joint US and Israeli blockade effectively sealed Syria's land and air borders, preventing the entry of both people and humanitarian aid.

3. Could Syria have foreseen the insurgency that ousted Bashar al-Assad?

Iran's intelligence services warned Syria of the impending attacks months in advance of their execution in late November.

4. What will happen to the Syrian territories recently seized by the US and Israel?

They will eventually be liberated by the courageous youth of Syria.

5. How did the Syrian government collapse?

The Syrian government collapsed because of a lack of resistance from the country’s national army, which prevented volunteer forces from other areas from intervening.

6. Why did Iran maintain a presence in Syria in recent years?

Tehran’s goal was to eliminate Daesh terrorists who were a threat to not only Iran but the entire region. Iran was never supposed to replace the Syrian army.

7. What lessons can be learned from the recent developments in Syria?

One must not be heedless of the enemy. One must not underestimate its enemies either.

 

Wednesday, 11 December 2024

Israeli attacks on Syrian military installations

Israel has confirmed it carried out attacks on Syria's naval fleet, as part of its efforts to neutralize military assets in the country after the fall of the Assad regime.

In a statement, the Israel Defense Forces (IDF) said its ships struck the ports at Al-Bayda and Latakia on Monday night, where 15 vessels were docked.

The BBC has verified videos showing blasts at the port of Latakia, with footage appearing to show extensive damage to ships and parts of the port.

The IDF also said its warplanes had conducted more than 350 air strikes on targets across Syria, while moving ground forces into the demilitarized buffer zone between Syria and the occupied Golan Heights.

Earlier, the UK-based Syrian Observatory for Human Rights (SOHR) said it had documented more than 310 strikes by the IDF since the Syrian government was overthrown by rebels on Sunday.

In a statement, Israel's Defence Minister Israel Katz said the IDF was aiming to "destroy strategic capabilities that threaten the State of Israel".

He added that the operation to destroy the Syrian fleet had been a "great success".

The IDF said a wide range of targets had been struck - including airfields, military vehicles, anti-aircraft weapons and arms production sites - in the Syrian capital, Damascus, as well as Homs, Tartus and Palmyra.

It also targeted weapon warehouses, ammunition depots and "dozens" of sea-to-sea missiles.

It added that it had done so to prevent them "from falling into the hands of extremists".

In a video message, Israeli Prime Minister Benjamin Netanyahu told the Syrian rebel group that ousted President Bashar al-Assad, Hayat Tahrir al-Sham (HTS), that Israel would "respond forcefully" if they allow Iran to "re-establish itself in Syria".

He has previously expressed a desire for peaceful ties with the new Syrian government, and cast its interventions as defensive.

Rami Abdul Rahman, the founder of the SOHR, described the impact of the strikes as destroying "all the capabilities of the Syrian army" and said that "Syrian lands are being violated".

Meanwhile, the IDF also confirmed it had troops operating in Syrian territory beyond the buffer zone bordering the Israeli-occupied Golan Heights.

The IDF acknowledged that its troops had entered Syrian territory but told the BBC that reports of tanks approaching Damascus were "false".

It said some troops had been stationed within the Area of Separation that borders the Israeli-occupied Golan Heights "and then a few additional points".

"When we say a few additional points, we're talking the area of the Area of Separation, or the area of the buffer zone in vicinity," IDF spokesperson Nadav Shoshani told the BBC.

BBC Verify has geolocated an image of an IDF soldier standing just over half a kilometer beyond the demilitarized buffer zone in the Golan Heights, inside Syria on a hillside near the village of Kwdana.

On Monday, the Israeli military released photos of its troops who crossed from the Israeli-occupied Golan Heights into the demilitarized buffer zone in Syria where UN peacekeepers are based.

A map showing the locations of Israeli strikes on Syria since 8 December, including Tartous, Masyaf, Qusayr Corssing, Al Mayadin, Mount Qasioun, Damascus and Khalkhala airport.

The IDF seizure of Syrian positions in the buffer zone was a "temporary defensive position until a suitable arrangement is found", Israeli Prime Minister Benjamin Netanyahu said on Monday.

"If we can establish neighbourly relations and peaceful relations with the new forces emerging in Syria, that's our desire. But if we do not, we will do whatever it takes to defend the State of Israel and the border of Israel," he said on Monday.

Turkey’s foreign ministry condemned Israel's entry into the buffer zone, accusing it of an "occupying mentality" during a "sensitive period, when the possibility of achieving the peace and stability the Syrian people have desired for many years has emerged".

This buffer zone, also known as the Area of Separation was set up as part of Israel's ceasefire agreement with Syria in 1974 to keep Israeli and Syrian forces separated, following Israel's earlier occupation of the Golan Heights.

Israel unilaterally annexed the Golan in 1981. The move was not recognized internationally, although the US did so unilaterally in 2019.

A map shows the location of the Golan Heights, between Israel and Syria. A lighter shaded area along the right-hand border of it shows the area of separation.

Asked about the IDF strikes on Monday night, Israeli Foreign Minister Gideon Saar said Israel was concerned only with defending its citizens.

"That's why we attack strategic weapons systems like, for example, remaining chemical weapons or long-range missiles and rockets in order that they will not fall into the hands of extremists," he said.

On Monday, the UN's chemical watchdog warns authorities in Syria to ensure that suspected stockpiles of chemical weapons are safe.

It is not known where or how many chemical weapons Syria has, but it's believed former President Assad kept stockpiles.

Israel's attacks come after Syrian rebel fighters captured the capital, Damascus, as Assad fled the country, reportedly for Russia. He, and before him his father, had been in power in the country since 1971.

Forces led by the Islamist opposition group HTS entered Damascus in the early hours of Sunday, before appearing on state television to declare that Syria was now "free".

 

Al-Golani: Today's reflection of veni; vidi; vici,

History shows that the United States loves to create and then demolish the phantoms. There is a long list but the most recent creation is a big mystery. Abu Mohammed al-Golani is a perfect reflection of the phrase "Veni; vidi; vici" attributed to Julius Caesar. The sentence, which translates as "I came; I saw; I conquered," is a well-known quote from Ancient Rome.

The insurgency that brought down Assad this past weekend was led by Hayat Tahrir al-Sham (HTS), which many Western governments have designated a terrorist group. The head of HTS, Abu Mohammed al-Golani, has a long history of militancy. After joining al-Qaida, he participated in the fight against US forces that invaded Iraq in 2003. He moved to Lebanon in 2006, where he supervised training for fighters for Jund al-Sham, a Salafist jihadi organization. He then returned to Iraq in 2008 to fight for the Islamic State group. The US Army briefly arrested him, and following his release, he moved to Syria after the 2011 uprising against Assad. He established the transnational jihadi al-Nusra Front, focusing on Iraq, Syria, Jordan and Lebanon.

After Assad regained control of Aleppo in late 2016, al-Golani changed the name of the group to Hayat Tahrir al-Sham. He settled in the province of Idlib and established the Syrian Salvation Government, abandoning the doctrine of transnational jihad to focus on Syria instead. He declared that his goal had shifted to eliminating the Assad regime and establishing Islamic rule in Syria, saying that his membership in al-Qaida and association with the Islamic State group were a thing of the past. He consolidated his authoritarian control over Idlib and marginalized other opposition groups, both religious and secular.