Why should Saudi Arabia buy US arms?

US President Donald Trump is scheduled to visit Saudi Arabia within this month. Reportedly his biggest task will be to sell arms worth US$100 billion to the Kingdom. I suggest that Saudis should try to find reply to a basic question, does the Kingdom need arms?

The usual US manta is that Saudi Arabia should buys arm due to several strategic, security, and geopolitical reasons. The US says, it is not just about weapons—it’s about defense, deterrence, influence, and survival in a volatile region. Let us examine some of these points:

National Defense

Over the years United States have been brainwashing Saudis that the kingdom faces threats from its neighbors and across the gulf and the adversaries are Iran, Iraq and Yemen. The manta also include security of oil infrastructure, its cities and people and above all security of two holy cities.

Deterrence

Over the years, the United States has been say that a well-armed Saudi military acts as a deterrent against aggression from regional rivals, especially Iran. Over the years Saudis were told “Iran is a bigger threat as compared to Israel”. Historically, there is no evidence that Iran attacked Saudi Arabia.

Strategic Alliances

Saudis have been constantly told that buying arms—especially from the United States and its allies, Britain and France deepens strategic partnerships. Arms deals often come with training, maintenance, intelligence sharing, and political backing. These purchases help cement defense ties, especially with the US, which says Saudi Arabia is a key Gulf ally.

Proxy Conflicts and Regional Influence

It is said that Saudi Arabia is involved in regional conflicts that include Yemen, Lebanon, Syria, and Sudan. A strong military gives Saudi Arabia leverage to project power and influence outcomes.

Internal Stability

Saudis are told that a strong military plays a key role in ensuring domestic security, protecting against Terrorism and Uprisings or internal unrest. The rulers are also told that well-equipped forces help ensure regime stability and protect key infrastructure.

Modernization and Prestige

The latest manta is that Saudi Vision 2030 aims at diversifying the economy and localizing arms production. Buying advanced systems helps transfer technology, train personnel, and develop domestic defense industries. And on top of all Military Might boosts national prestige and international status.

This narrative can be summed up in a few words, “Saudi Arabia should buy arms not just to fight wars, but to prevent them, influence allies and enemies, and secure its long-term stability in one of the world’s most dangerous regions”.

It is necessary to mention that over the years United States has been brainwashing Saudis saying “Iran is a bigger threat to Saudi Arabia as compared to Israel” and also fanning animosity between Saudi Arabia and Iran. 

Singapore Election 2025

Singapore's 2025 general election concluded today, marking a pivotal moment for the nation's political landscape. This election is the first major test for Prime Minister Lawrence Wong, who succeeded Lee Hsien Loong in 2024, ending the Lee family's long-standing leadership since the country's independence.

The ruling People's Action Party (PAP), in power for 66 years, aims to secure a strong mandate to address pressing economic challenges, including a potential recession linked to global trade tensions

Key Election Highlights

Voter Turnout: Over 2.76 million citizens were eligible to vote at more than 1,200 polling stations, with turnout reaching 82% by late afternoon.

PAP's Position: While the PAP is expected to maintain its majority, the election is closely watched for signs of growing support for the opposition amid public dissatisfaction with government control and a high cost of living.

Opposition's Performance: The Workers' Party (WP), the main opposition, is contesting 26 seats. Analysts are monitoring whether the WP can build on its previous gains, as the PAP received 60.1% of the vote in 2020—its worst result.

Election Dynamics: This election features the highest number of candidates in Singapore's history, with 211 individuals, including two independents, contesting. There are five multi-cornered contests, the most since 1991,

Major Campaign Issues

Economic Concerns: Voters are primarily concerned about the high cost of living, housing affordability, and employment opportunities. The PAP has pledged to address these issues through various support schemes, while opposition parties propose alternative solutions, such as reducing the Goods and Services Tax (GST) and implementing affordable housing schemes.

Political Landscape: The PAP warns that increasing opposition presence in parliament could weaken the nation's government at a critical global juncture. Opposition parties, however, argue for a more balanced government to ensure accountability on constitutional changes and national policy.

Way Forward

Election results are expected early Sunday morning. Observers are keen to see whether the PAP can improve upon its previous performance and how the opposition fares in expanding its parliamentary presence. The outcome will have significant implications for Singapore's political future and its approach to addressing domestic and global challenges

 

 

Australia election driven by “Trump Factor”

Australian Prime Minister Anthony Albanese's centre-left Labor Party was projected to win over the conservative opposition, Sky News Australia and the Australian Broadcasting Corporation said as early vote counting showed Labor in a strong position.

Broadcasters Sky News Australia and Seven projected that the conservative Liberal and National coalition could not win government, based on early counting, while the Australian Broadcasting Corporation's election analyst Antony Green said Labor had won.

Cost-of-living pressures and concerns about President Donald Trump's volatile policies had been among the top issues on voters’ minds.

Defence Minister Richard Marles told broadcaster Seven that early results were encouraging and Labor regaining majority government "remains a possibility and it is what we are trying to achieve".

Polls closed at 0800 GMT in Australia's most populous Eastern Time zone while voting in Western Australia, home to the city of Perth, will end at 1000 GMT.

Opinion polls had shown Labor ahead, after trailing in the polls as recently as February to Peter Dutton's conservative coalition.

As counting got under way, Treasurer Jim Chalmers said the Labor government had been "in all sorts of trouble" at the end of 2024 but got back into the contest because of Albanese's strong campaign performance, policies that addressed concerns about the cost of living, and the Trump Effect.

"The economy became a positive from a negative - the interest rate cut was part of the story," he told the Australian Broadcasting Corporation.

The central bank cut rates in February, on the eve of the election being called, reversing course after 13 interest rate rises that had ratcheted up home mortgage repayments for households.

"The sense of the influence of American politics" had also helped, he added.

Opposition Liberal Party spokesman, Senator James Paterson, defended the conservative campaign, which he also said was negatively affected by "the Trump factor".

 

 

 

 

Trump Budget “A Disgrace”

The budget blueprint that US President Donald Trump unveiled on Friday would give a record US$1.01 trillion to the US military for the coming fiscal year while imposing US$163 billion in total cuts to housing, education, healthcare, climate, and labor programs.

The proposal, released by Office of Management and Budget (OMB) Director Russell Vought, was viewed by Democratic lawmakers and other critics as a clear statement of the White House's intent to gut programs that working class Americans rely on while pursuing another round of tax breaks for the ultra-wealthy and bolstering the Pentagon, a morass of waste and abuse.

"President Trump has made his priorities clear as day," said Sen. Patty Murray, vice chair of the Senate Appropriations Committee. "He wants to outright defund programs that help working Americans while he shovels massive tax breaks at billionaires like himself and raises taxes on middle-class Americans with his reckless tariffs."

"This president believes we should shred at least US$163 billion in investments here at home that make all the difference for families and have been essential to America's success—but that we should hand billionaires and the biggest corporations trillions in new tax breaks," Murray added. "That is outrageous—and it should offend every hardworking American who wants their tax dollars to help them live a good life, not pad the pockets of billionaires."

According to the OMB summary, Trump's Fiscal Year 2026 budget would cut over US$4.5 billion from Title I and K-12 education programs, US$4 billion from a program that provides heating assistance to low-income households, US$2.4 billion from safe drinking water funding, US$26 billion from rental assistance programs, US$17 billion from the National Institutes of Health, US$100 million from environmental justice programs, US$1.3 billion from the National Oceanic and Atmospheric Administration (NOAA), and US$4.6 billion from the Labor Department.

"President Trump is again betraying the millions of Americans who believed him when he promised to lower costs," Tony Carrk, executive director of Accountable.US, said in a statement. "This time, he's taking aim at anyone who attends a public school, relies on rental assistance to keep a roof over their heads, or accesses healthcare through Medicaid or Medicare."

"Instead of standing up for everyday Americans," said Carrk, "Trump is prioritizing his own wallet and the tax benefits of his wealthy donors—leaving local communities and small towns to bear the brunt of his cuts."

Bobby Kogan, senior director of federal budget policy at the Center for American Progress, noted that the cuts to social programs in the White House's budget proposal "are extreme by any standard, but they're extreme even by Trump's own standards," far exceeding even what he proposed during his first term.

"The cuts in this budget are especially egregious," said Kogan, "when you consider that Trump is also trying to push the largest Medicaid and food assistance cuts in American history through Congress over the next few months."

Meanwhile, the US military would see a $113 billion budget increase compared to current levels if the Republican-controlled Congress were to enact Trump's proposal.

The 13% increase would push the nation's annual military budget above US$1 trillion, which analysts have described as the highest level since the Second World War.

"The Pentagon is bloated, wasteful, and has NEVER passed an audit," the progressive watchdog group Public Citizen wrote in response to Trump's budget. "What a disgrace."

 Courtesy: Common Dreams

Is Saudi Arabia Letting Oil Crash, On Purpose?

Traders often say that OPEC’s primary role is to support oil prices. That’s been the dominant narrative for decades. However, this week told a very different story — one that has raised eyebrows across the global energy market.

Brent crude plunged by 8%, a significant drop by any standard, yet Saudi Arabia, OPEC’s de facto leader and most influential member, showed almost no visible concern. There was no emergency meeting, no surprise production cut, and no immediate attempt to stabilize the market. It’s a silence that speaks volumes.

At first glance, most headlines pointed to the familiar explanation, questions around OPEC discipline, compliance, and coordination. But when one looks at the numbers and the timing of key decisions, it becomes increasingly clear that something far more strategic may be unfolding behind the scenes.

Crude oil is now trading at levels not seen in four years, and OPEC’s upcoming meeting — one that could potentially shift the trajectory of global oil markets — has been rescheduled for May 03. Notably, the day many major markets will be closed or have limited activity due to global holidays. The timing feels less like coincidence and more like tactical maneuvering.

In this week’s Global Energy Alert, its analysts take a deep dive into the broader implications of Saudi Arabia’s recent moves. It examines what Riyadh’s evolving production strategy truly signals about its underlying priorities.

Is this part of a long-term play to accommodate the anticipated return of Iranian oil exports?

Or perhaps a quiet recalibration in response to Russia’s unpredictable role in OPEC+?

Analysts also explore the lesser-known geopolitical undercurrents — including ongoing US–Saudi discussions around defense cooperation and civilian nuclear development, both of which may carry hidden oil-related stakes.

OPEC’s next decision could mark a turning point. The market may be lulled into complacency, but the pieces are being set for a potentially dramatic reset. If you’re not paying close attention, you might just miss the most important setup of the year.

 

 

 

 

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Traders often say OPEC’s job is to support prices. But this week, Brent crude dropped 8% — and Saudi Arabia barely blinked.

The headlines say it’s about OPEC discipline. But the numbers — and the timing — suggest something bigger is unfolding.

And now, oil is trading at four-year lows just as the group’s meeting shifts to May 3, conveniently when markets are closed.

In this week’s Global Energy Alert, our analysts break down:

What Riyadh’s production strategy signals about its real priorities

How Saudi Arabia could be prepping for Iran’s return — and hedging its bets on Russia

The hidden stakes in U.S.–Saudi defense and nuclear talks tied to oil

OPEC’s next move could reset the market — and if you're not watching closely, you'll miss the setup.

 

PSX benchmark index down 1.17%WoW

Pakistan Stock Exchange (PSX) remained volatile throughout the week, primarily due to concerns over potential escalation in tensions between Pakistan and India. However, market rebounded on last trading day and recovered a significant portion of earlier losses as Pakistan allowed Afghan trucks to enter India via Wagah border. The benchmark index closed the week with a loss of 1,355 points, down 1.17%WoW, ending at 114,114 points on Friday, May 02, 2025.

Positive signals from the United States and Gulf countries urging de-escalation, along with a lower-than-expected inflation reading for April 2025, contributed to a recovery in sentiment during the final trading session.

Corporate results also influenced stock specific performance, particularly in the banking, cement, and technology sectors. Inflation in April 2025 eased further to 0.28%YoY, compared to 0.69%YoY in the previous month. In another positive development, Pakistan’s case for approval of the US$1.0 billion second tranche and US$1.3 billion RSF program from IMF’s executive board has been scheduled for review on May 09. However, on the fiscal side, tax collection during the outgoing month fell short of target by PKR117 billion, taking the 10MFY25 collection shortfall to PKR831 billion. Additionally, trade deficit widened by 36%YoY to US$3.4 billion in April 2025, due to a 14%YoY increase in imports and 9%YoY decline in exports.

Market participation also weakened amid the prevailing volatility, with average daily traded volume falling by 29%WoW to 424 million shares as against compared to 599 million shares a week ago.

Other major news flow during the week included: 1) US urging Pakistan and India to work towards responsible resolution, 2) Consumer Confidence Index increasing by 20.9%QoQ in 2QFY25, 3) Petrol, diesel prices declining, and 4) the GoP announcing tax relief to salaried class subject to IMF nod.

Vanaspati & Allied Industries, Sugar & Allied Industries, and Modarabas were amongst the top performing sector, while Transport, Refinery, and Pharmaceuticals were the laggards.

Major selling was recorded by Individuals and Foreigner with a net sell of US$14.0 million, while Mutual funds and other organizations absorbed most of the selling with a net buy of US$10.5 million.

Top performing scrips of the week were: AKBL, AICL, PKGP, SYS, and JDWS, while laggards included: APG, GLAXO, CNERGY, KTML, and PPL.

According to AKD Securities, market outlook remains positive, with anticipated rate cut, up to 100bps in the upcoming MPC meeting on Monday, and the IMF Executive board's approval of the second tranche and RSF program.

Moreover, the likelihood of wider scale escalation between Pakistan and India remains lows, the brokerage house maintains an “Overweight” stance on Banks, E&Ps, Fertilizer, Cement, OMCs, Autos, Textile, and Technology sectors.

These sectors are likely to benefit from monetary easing, structural reforms, reciprocal tariffs and a continued decline in commodity prices.

The top picks of the brokerage include, MEBL, MCB, FFC, OGDC, PPL, PSO, LUCK, FCCL, INDU, and SYS.

Ship carrying aid for Gaza attacked

A ship carrying humanitarian aid and activists for Gaza was bombed by drones in international waters off Malta early on Friday, its organizers said, alleging that Israel was to blame, reports Reuters.

The Israeli foreign ministry did not immediately respond to a request for comment on the allegation by the Freedom Flotilla Coalition, an international non-governmental group.

The Maltese government said the vessel and its crew were secured in the early hours of the morning after a nearby tug assisted with firefighting operations, but the NGO and Swedish activist Greta Thunberg said the ship was still in danger.

Thunberg told Reuters she was in Malta and had been supposed to board the ship as part of the Freedom Flotilla's planned action in support of Gaza, which is under blockade and bombardment by Israel.

The NGO published video footage, filmed in darkness, showing a fire on one of its ships, the Conscience. The footage showed lights in the sky in front of the ship and the sound of explosions could be heard.

"Israeli ambassadors must be summoned and answer to violations of international law, including the ongoing blockade (of Gaza) and the bombing of our civilian vessel in international waters," it said.

The Maltese government said maritime authorities had received a mayday call shortly after midnight local time from a vessel outside of territorial waters, with 12 crew members and four civilians on board, reporting a fire.

It said a nearby tug headed to the scene and launched firefighting operations and a Maltese patrol vessel was dispatched. After several hours, the vessel and its crew were secure, it said, adding that crew had refused to board the tug.

But the Freedom Flotilla said in a statement on its website that the alleged drone strikes had caused "a substantial breach in the hull".

"The drone strike appears to have deliberately targeted the ship's generator, leaving the crew without power and placing the vessel at great risk of sinking," it said.

A spokeswoman for the group, Caoimhe Butterly, said the attack took place as the ship was preparing for activists to board from another vessel. A transfer at sea had been planned rather than the ship going to harbour, for bureaucratic reasons, she said.

Thunberg said that as far as she knew, the vessel was still at the location where it had been attacked and still in imminent danger.

"This attack caused an explosion and major damage to the vessel, which made it impossible to continue the mission," she said in a Zoom interview.

"I was part of the group who was supposed to board that boat today to continue the voyage towards Gaza, which is one of many attempts to open up a humanitarian corridor and to do our part to keep trying to break Israel's illegal siege on Gaza," she said.

Thunberg and the NGO said there were 30 people on board, not 16 as the Maltese government said.

The coalition said it had been organising a non-violent action under a media blackout in order to avoid any potential sabotage.

The Gaza war started after Hamas-led fighters killed 1,200 people and took 251 hostages to Gaza in the October 7, 2023 attacks, according to Israeli tallies. Since then, Israel's offensive on the enclave killed more than 52,000, according to Palestinian health officials.

Since March 02, Israel has completely cut off all supplies to the 2.3 million residents of the enclave, and food stockpiled during a ceasefire at the start of the year has all but run out.

Another coalition ship on a similar mission to Gaza in 2010 was stopped and boarded by Israeli troops, and nine activists died. Other ships have similarly been stopped and boarded, without loss of life.

Hamas issued a statement about the incident off Malta, accusing Israel of "piracy" and "state terrorism".