Iran-Saudi Cordial Ties Upset US and Israel

Growing amicable relations between Iran and Saudi Arabia have played a significant role in promoting peace and security in West Asia over the past years. Such cordial ties have come into even sharper focus following Israel’s aggression against Iran last month.

On June 13, Israel launched unprovoked strikes on Iranian territory, targeting high-ranking military commanders, nuclear scientists, and civilians alike. The United States later joined the Israeli war effort, launching attacks on three of Iran’s nuclear facilities—actions widely viewed as violations of the United Nations Charter and the Non-Proliferation Treaty.

In a swift and powerful response, Iranian Armed Forces launched retaliatory strikes on strategic Israeli targets in cities such as Tel Aviv and Haifa, and struck the al-Udeid air base in Qatar—the largest American military installation in West Asia.

By June 24, Iran’s coordinated operations had effectively brought Israeli and American aggression to a halt.

The scale and precision of Iran’s missile power shocked Israel and its Western allies, particularly the United States. 

 “Although Israel has its own sophisticated, multilayered defense, which includes systems like Arrow, David’s Sling and Iron Dome, the country was running low on its own interceptors and was husbanding resources by the time the conflict ended.

Had Iran fired a few more large volleys of missiles, Israel could have exhausted its supply of top-tier Arrow 3 munitions,” The Wall Street Journal reported on Friday, citing American officials familiar with the 12-day war. 

The Journal also revealed that despite deploying two advanced THAAD missile-defense systems to Israel in the wake of the conflict, the US efforts proved insufficient to fully stop Iran’s missile barrages. 

“Operating alongside Israeli systems, THAAD operators burned through munitions at a furious clip, firing more than 150 missiles to shoot down the waves of Iranian ballistic missiles,” the paper reported.

The intensity of the Iranian attacks created such a high demand for interceptors that, according to the Journal, the Pentagon considered diverting THAAD interceptors already purchased by Saudi Arabia to Israel. “Saudi Arabia refused US request to send interceptors to Israel”

Meanwhile, according to Middle East Eye, which cited two American officials, the US asked Saudi Arabia to turn over THAAD interceptors to help Israel, but Riyadh rejected the request.  “Saudi Arabia's refusal to help Israel will sting officials in Washington,” MEE added. 

Saudi Arabia’s “no” to the US demand underscores the deepening ties with Iran. 

On July 8, Saudi Crown Prince Mohammed bin Salman (MBS) held talks with Iranian Foreign Minister Abbas Araghchi in Jeddah. In the meeting, the Saudi crown prince condemned any military aggression against Iran’s sovereignty and territorial integrity. He welcomed the improving climate of cooperation between the two Islamic powers.

Araghchi, in turn, “thanked Saudi Arabia for its responsible stance in condemning the Israeli aggression against Iran.”

He put emphasis on Iran’s commitment to building stronger ties with its neighbors, including Saudi Arabia based on principles of good neighborliness and mutual interest.

Araghchi also held talks with Saudi Defense Minister Prince Khalid bin Salman and Foreign Minister Prince Faisal bin Farhan, reaffirming the countries’ commitment to closer strategic cooperation.

China’s mediation drives Iran-Saudi unity for regional stability

The renewed diplomatic warmth is rooted in a 2023 agreement brokered by China, which saw Iran and Saudi Arabia formally restore ties after years of estrangement. Since then, China's constructive mediation has played a key role in bringing Tehran and Riyadh closer together.

As the dust settles on the most intense Israel-Iran war in recent memory, the strengthening bond between Iran and Saudi Arabia emerges as a powerful force for stability in West Asia. Their growing diplomatic, political, and economic cooperation is not only reshaping the region's strategic landscape—but also offering a compelling alternative to the cycles of escalation driven by Israeli aggression.

Once geopolitical rivals, Tehran and Riyadh now appear poised to lead a new era—one rooted in sovereignty, mutual respect, and collective security. Their united front sends a clear message: regional peace is best preserved not through foreign intervention or militarism, but through regional unity and shared interests.

In a time of increasing volatility, Iran and Saudi Arabia are demonstrating that Islamic nations can rise above division and become pillars of stability—capable of defending their people, upholding international law, and resisting those who threaten the peace of the region. The path they have chosen may well define the future of West Asia.

 

 

 

 

United States obstructing Gaza ceasefire

The Hamas resistance movement has strongly condemned recent statements by the US administration about the ceasefire negotiations, accusing it of shielding the Israeli occupation regime. 

President Trump stated on Friday, “Hamas didn’t really want to make a deal. I think they want to die and it’s very, very bad. And, it got to a point where you have to finish the job. (Hamas) pulled out (of the negotiations).”

Hamas reiterated its commitment to negotiations and its serious desire to reach a comprehensive agreement on ending the Israeli war on Gaza.

The resistance movement expressed surprise at the remarks by US President Donald Trump, as well as earlier comments by US envoy Steve Witkoff. 

The movement stated that these remarks contradict the assessments of mediators and do not reflect the reality of the negotiation process, which it said had made real progress. 

It emphasized that mediating parties, especially Qatar and Egypt, have expressed their appreciation for Hamas’s serious and constructive stance.

In a press statement, Hamas official Izzat al-Rishq criticized the United States for disregarding “the real obstacle to any agreements.”

He also accused the Netanyahu government of creating roadblocks, engaging in delays, and breaching prior commitments.

Al-Rishq stressed that Hamas has, from the start of the negotiations, acted with national responsibility and great flexibility. 

He said the movement has been keen to reach a comprehensive agreement that would end the genocidal war and alleviate the suffering of Gaza’s population.

Al-Rishq also said Hamas’s latest response came after extensive national consultations with Palestinian factions, mediators, and friendly countries. 

The official added that Hamas had engaged constructively and flexibly with all comments and suggestions raised, including those within Witkoff’s own proposal.

In its response, Hamas emphasized the need for clear and enforceable terms, particularly regarding humanitarian issues. 

It called for an unimpeded flow of aid, distributed through the United Nations and its approved agencies, without interference from the Israeli occupation regime.

According to al-Rishq, Hamas also insisted on reducing the size of buffer zones where Israeli occupation forces would remain for 60 days and not allowing most displaced people to return to their homes.

Hamas also dismissed accusations by the US administration that the aid intended for Gaza is stolen. These claims were baseless and recently disproven by a Reuters report citing a USAID investigation, which found no evidence linking Hamas to the misappropriation of US assistance, it asserted.

Furthermore, Hamas called on the US administration to stop providing political and military cover for the Israeli regime, which continues to carry out a campaign of extermination and starvation against more than two million Palestinians in Gaza under the watch of the international community.

Hamas urged Washington to pressure the Israeli regime to engage seriously in a political process that ends the genocide, leads to a fair prisoner exchange deal, and alleviates the suffering of Palestinian detainees in Israeli prisons.

 

Ousting of female leaders to have chilling effect at Pentagon

The unexplained removal of the first female head of the US Naval Academy last week is the latest in a string of top military women who have either been fired or re-delegated to largely invisible roles under the Trump administration, reports The Hill.

The ousting of Vice Adm. Yvette Davids from her post as the first female superintendent of the academy in Annapolis, makes her one of at least five senior female service members who have been moved out of their roles since January.

That trend, coupled with Defense Secretary Pete Hegseth’s well-documented antipathy toward women in combat roles prior to becoming Pentagon chief, could have a chilling effect on women enlisting in the armed forces, experts say.

“It’s hard not to come to the conclusion that it’s going to weaken our military force by undermining the role of women who have become, I believe, an intrinsic part of our military capability,” said Leon Panetta, a former defense secretary in the Obama administration.

Panetta, who in 2013 announced that all combat roles would soon be open to women — a shift that eventually came in 2015 — told The Hill that the Trump administration’s removal of female leaders from the ranks, often without explanation, will have impacts on morale for female service members. 

“Just to remove commanders from their positions without cause sends a clear signal that this is not about merit, it’s not about performance, and it is about the fact that they’re women. It’s the only conclusion you can come to,” he said.

Davids was not outright fired, instead moved to deputy chief of naval operations, a senior position but largely out of the public eye. But the shift was only after she had led the academy for 18 months rather than the typical three- or four-year tenure of the school’s superintendent.

Nora Bensahel, a professor of civil-military relations at Johns Hopkins University, said the fact that she was removed from the Naval Academy ”really sends a message from the Pentagon that they do not think that a woman is qualified to be in charge of educating and training the next generation of fighters.”

 

 

 

 

French recognition of Palestine: Historic shift or hollow gesture

In a bold and historic move, President Emmanuel Macron has announced that France will officially recognize the State of Palestine, signaling a significant shift in the country’s foreign policy and its stance on Israel’s war on Gaza.

While the decision is being hailed as admirable, it also reflects a deeper reckoning—an implicit admission that France’s longstanding alignment with Israel, particularly amid the worsening humanitarian crisis in Gaza, has damaged its global reputation.

Macron made the announcement in a post on X on Thursday, stating that France will formally recognize Palestinian statehood at the United Nations General Assembly in September.

The decision comes amid growing international outrage over Israel’s ongoing assault on Gaza, which has killed more than 59,000 Palestinians since October 2023 and triggered a catastrophic humanitarian crisis.

Severely restricted aid deliveries have fueled widespread hunger, with over 100 aid and human rights organizations this week calling for urgent international intervention. They condemned Israel’s blockade and deliberate starvation tactics as collective punishment.

At home, Macron faces rising domestic pressure. France, historically one of Israel’s key allies, has come under intense public criticism for its perceived complicity in Israel’s war on Gaza. Against this backdrop, Macron’s move is widely seen as a calculated effort to appease domestic discontent and obscure France’s role in enabling the continued assault on Gaza.

In his statement, Macron declared, “The urgent need today is for the war in Gaza to end and for the civilian population to be rescued.” If France is serious about this call, it should leverage its seat on the UN Security Council to press for an immediate ceasefire and ensure unrestricted humanitarian access.

Though Palestinians and many international voices have welcomed Macron’s announcement, it does little to reverse the harm already inflicted. Symbolism must now be matched with concrete, sustained political action.

France’s recognition makes it the most influential European country—and the first G7 nation—to take this step, following similar moves by the European countries of Norway,

Today, more than 140 of the UN’s 193 member states either recognize or are committed to recognizing Palestinian statehood. Yet major Western powers, including the United States, the United Kingdom, and Germany, continue to withhold recognition.

These nations are also grappling with growing domestic scrutiny. In the UK, Prime Minister Keir Starmer is under pressure from within his own party to acknowledge Palestinian statehood amid the worsening crisis. On Thursday, Starmer condemned the “unspeakable and indefensible” conditions in Gaza, reaffirming that Palestinian statehood is an “inalienable right.” But as with Macron, his remarks seem intended as much to address domestic concerns. 

For now, France’s move is significant not only for its timing but also for its potential to shift the political landscape. As a major global power, France may pave the way for other hesitant Western governments to reconsider their positions.

Israel’s war on Gaza has laid waste to much of the territory but failed to crush Palestinian resistance. The resilience demonstrated by Palestinians has altered the global narrative, compelling even Israel’s closest allies to reassess the political and moral costs of their support.

Macron’s announcement could mark the beginning of a new chapter in international diplomacy on Palestine. But without sustained pressure to end the war and lift the siege, the recognition risks being remembered as little more than a symbolic gesture.

 

Netanyahu and Trump to abandon Gaza ceasefire negotiations with Hamas

Israeli Prime Minister Benjamin Netanyahu and US President Donald Trump appeared on Friday to abandon Gaza ceasefire negotiations with Hamas, both saying it had become clear that the Palestinian militants did not want a deal, reports Reuters.

Netanyahu said Israel was now mulling "alternative" options to achieve its goals of bringing its hostages home from Gaza and ending Hamas rule in the enclave, where starvation is spreading and most of the population is homeless amid widespread ruin.

Trump said he believed Hamas leaders would now be "hunted down", telling reporters, "Hamas really didn't want to make a deal. I think they want to die. And it's very bad. And it got to be to a point where you're going to have to finish the job."

The remarks appeared to leave little to no room, at least in the short term, to resume negotiations for a break in the fighting, at a time when international concern is mounting over worsening hunger in war-shattered Gaza.

French President Emmanuel Macron, responding to the deteriorating humanitarian situation, announced that Paris would become the first major Western power to recognize an independent Palestinian state.

Britain and Germany said they were not yet ready to do so but later joined France in calling for an immediate ceasefire. British Prime Minister Keith Starmer said his government would recognize a Palestinian state only as part of a negotiated peace deal.

Trump dismissed Macron's move. "What he says doesn't matter," he said. "He's a very good guy. I like him, but that statement doesn't carry weight."

Israel and the United States withdrew their delegations on Thursday from the ceasefire talks in Qatar, hours after Hamas submitted its response to a truce proposal.

Sources initially said on Thursday that the Israeli withdrawal was only for consultations and did not necessarily mean the talks had reached a crisis. But Netanyahu's remarks suggested Israel's position had hardened overnight.

US envoy Steve Witkoff said Hamas was to blame for the impasse, and Netanyahu said Witkoff had got it right.

Senior Hamas official Basem Naim said on Facebook that the talks had been constructive, and criticized Witkoff's remarks as aimed at exerting pressure on Israel's behalf.

"What we have presented - with full awareness and understanding of the complexity of the situation - we believe could lead to a deal if the enemy had the will to reach one," he said.

Mediators Qatar and Egypt said there had been some progress in the latest round of talks. They said suspensions were a normal part of the process and they were committed to continuing to try to reach a ceasefire in partnership with the US.

The proposed ceasefire would suspend fighting for 60 days, allow more aid into Gaza, and free some of the 50 remaining hostages held by militants in return for Palestinian prisoners jailed in Israel.

It has been held up by disagreement over how far Israel should withdraw its troops and the future beyond the 60 days if no permanent agreement is reached.

Itamar Ben-Gvir, the far-right national security minister in Netanyahu's coalition, welcomed Netanyahu's step, calling for a total halt of aid to Gaza and complete conquest of the enclave, adding in a post on X, "Total annihilation of Hamas, encourage emigration, (Jewish) settlement."

PSX benchmark index up 0.44%WoW

Pakistan Stock Exchange (PSX) remained range bound during the week, with the benchmark index trading within a band amid the absence of major triggers and rollover week. Nonetheless, the benchmark gained 610 points or 0.44%WoW to close at 139,207 on Friday July 25, 2025. However, market participation declined by 16.7%WoW to average 635 million shares traded per day.

On the macro front, developments remained broadly positive as S&P upgraded Pakistan’s credit rating by one notch to B– after three years. Subsequently, Pak Eurobond yields declined across different maturities. Moreover, aforementioned improvement in credit rating along with tightening of illicit forex market, supported a 0.5%WoW appreciation in PKR to 283.45/US$, highest weekly gain in 93 weeks.

In last T-Bills auction, yields declined by to 10.85% for one-month paper, indicating expectations of rate cut in the upcoming Monetary Policy Committee (MPC) meeting scheduled for July 30, 2025. AKD Securities expects SBP to resume monetary easing with a 50bps reduction, supported by moderating inflation and easing geopolitical tensions, with July 2025 CPI projected at 2.5%YoY, down from 3.2%YoY in previous month.

The GoP has formed a task force to resolve the PKR2.8 trillion gas circular debt, with a proposed plan involving commercial borrowing and the imposition of a special levy to fund repayments.

Foreign exchange reserves help by State Bank of Pakistan (SBP) declined to US$14.5 billion as of July 18, 2025.

Other major news flow during the week included: 1) ADB revised Pakistan's FY25 growth to 2.7 percent, 2) IMF tied 4% additional sales tax removal to wider tax net, 3) Foreign investors repatriated US$2.2 billion in FY25, 4) Power generation remained flat in FY25, and 5) ECC approved PKR100 billion financing for 50,000 housing units.

Food, Transport, and Auto assembler were the top performing sectors, while Vanaspati & allied industries, while Woollen, and Leather were among the laggards.

Major net selling was recorded by other organizations and Foreigners with a net sell of US$16.1 million. Mutual funds and Individuals absorbed most of the selling with a net buy of US$12.8 million.

Top performing scrips of the week were: UPFL, HGFA, FHAM, ATLH, and HUMNL, while the laggards included: PSEL, PKGP, BNWM, ABL, and SRVI.

According to AKD Securities, market is expected to remain positive in the coming weeks, with the upcoming MPC and corporate results remaining in the limelight.

The benchmark index is anticipated to sustain its upward trajectory, with a target of over 165,000 points by end December 2025, primarily driven by strong earnings in Fertilizers, sustained ROEs in Banks, and improving cash flows of E&Ps and OMCs, benefiting from declining interest rates and economic stability.

The top picks of the brokerage house include: OGDC, PPL, PSO, FFC, ENGROH, MCB, HBL, FCCL, KOHC, INDU, and SYS.

Trump has turned US into a rogue and pariah state

The United States under the leadership of Donald Trump is almost at odds with all countries except Israel. The Trump administration is also defying established international institutions, such as UNESCO and the International Criminal Court.

Trump’s repeated and reckless remarks that Canada should be the 51st state of the United States and that his country may take over Greenland by force if necessary, his proposal to own the Gaza Strip, his reversal of any decision or step to rein in on the climate change, and his illusion that all countries are taking advantage of the US have made Trump to look outlandish.

His tactless withdrawal from the 2015 Iran nuclear deal, officially known as the Joint Comprehensive Plan of Action (JCPOA), has now turned into a global security headache as his administration and Israel launched military strikes on Iran’s nuclear facilities in June.

The strikes, which are an act of aggression and illegal under international law, could have led to environmental catastrophes, even though some experts still don’t rule out the possibility of nuclear disasters.

Speaking at a forum at the Institute for Political and International Studies in Tehran about 18 years ago, Germany’s Joseph Joschka said the world would descend into chaos without the United States. However, the United States itself is now pushing the world toward anarchy and lawlessness.

In his term as president, he started defying international rules and regulations. He recognized Jerusalem (al-Quds) as Israel’s capital, moved the US embassy from Tel Aviv to the city, and recognized the Syrian Golan Heights as Israel’s territory, pulled out of the JCPOA, the Paris climate agreement, and the 1987 Intermediate-Range Nuclear Forces (INF) Treaty.

His recognition of occupied Jerusalem as Israel’s capital took place while the international community was and is still working, of course with a lesser hope, on establishing a Palestinian State with East Jerusalem as its capital.

In his first term, it was thought that Trump was inexperienced and was living in his dreams because he had not served in top managerial posts such as a mayor, governor, or served in Senate before being catapulted to the powerful post of president. Yet, he began his second presidency after a four-year hiatus with more thoughtless remarks and actions.

On the first day of his presidency in the second term, Trump signed an executive order to again withdraw the US from the Paris climate agreement that the country had joined in during the Joe Biden presidency. In his announcement, Trump stated that “as of today, the United States will cease all implementation of the Paris agreement.”

His remarks that Canada should join the US were first taken as a joke. However, after repetition it become clear that he was serious in his statements. In his newest remarks, Trump told Fox News, "Frankly, Canada should be the 51st state, okay? It really should, because Canada relies entirely on the United States. We don't rely on Canada."

His threat of annexing Greenland, that caused transatlantic division, caused shivers in the bones of Danish Prime Minister Mette Frederiksen prompting her to visit Berlin, Paris, and Brussels in late January with a focus on fostering "European unity". In Brussels, she met with former NATO Secretary General Mark Rutte.

The Trump administration also introduced sanctions on the UN Human Rights Council special rapporteur Francesca Albanese for Palestine as an outspoken critic of Israel's military offensive in Gaza. Intolerant of Albanese’s criticism of companies such as arms manufacturer Lockheed Martin for selling weapons, and tech firms Alphabet, IBM, Microsoft and Amazon for providing technology which allows Israel to track and target Palestinians, provoked the US to resort to the repetitive old policy of accusing the UN official of being ant-Semitic.

On July 21, in his latest rash decision, Trump pulled the US out of the UN culture and education agency UNESCO, repeating a move he had already ordered during his first term, which had also been reversed under Biden.  Trump justified the decision by claiming that the UN body is anti-Semitic.

All these moves are portraying the United States as a bully, rogue and pariah state that will make countries, even American friends, to rethink the quality of their relations with Washington.