Red Sea cable damage disrupt internet in Asia and Middle East

According to media reports, internet access in parts of Asia and the Middle East was disrupted after undersea cables in the Red Sea were cut, experts said Sunday, though the cause of the incident remains unclear.

The outages have raised concerns about possible sabotage amid ongoing attacks by Yemen’s Houthis, who have previously denied targeting subsea cables.

Undersea fiber links form one of the backbones of global internet infrastructure, alongside satellites and land-based networks.

Microsoft said on its status website that the Middle East “may experience increased latency due to undersea fiber cuts in the Red Sea,” though it added that internet traffic not routed through the region was unaffected.

NetBlocks, an internet observatory, reported “a series of subsea cable outages in the Red Sea” degrading connectivity in multiple countries, including India and Pakistan. It said the failures affected the SMW4 and IMEWE cable systems.

Pakistan Telecommunications Company confirmed the cuts in a Saturday statement.

The affected cables are operated by Tata Communications and a consortium managed by Alcatel Submarine Networks. Both companies declined to comment.

Subsea lines can be damaged accidentally by ship anchors or intentionally in attacks. Repairs often take weeks as ships must locate and lift the cable before restoring service.

 

The New World Disorder

French historian Fernand Braudel identified three cycles of history. The shortest is the day-to-day flow of events; Braudel called them “fireflies” on the stage. Next up are paradigm shifts — like the end of the Cold War — that can play out over decades or longer. Finally, there’s the longue durée: the bedrock of climate and geography that shapes everything else and changes only over centuries or millennia.

Six months into US President Donald Trump’s second term, it’s clear that the course of events has changed. What’s the collective noun for a group of fireflies? Probably not “paradigm shift,” but in this case that’s what it adds up to. 

The US pivot from free trade and global security to a sharper focus on the national interest has the makings of a decades-defining transformation, reversing the global integration supercharged by the end of the Cold War.

In the decades after World War II, the US was the champion of free trade, the anchor for global security and the gold standard on governance. Now, it has raised tariffs to the highest level since the 1930s, told allies they need to pay for protection and crossed red lines on independence for the Fed and statistical agencies.

That’s a major break, and an important moment for the global economy, shifting patterns of growth and inflation, borrowing and debt.

The geopolitical landscape has shifted just as decisively. Jolting though it is, Trump’s focus on America First is a reflection of a new reality where the US is no longer the world’s sole superpower. Regardless of who occupies the White House next, the US allies and adversaries will continue to reorient around that new state of affairs.

How about Braudel’s longue durée — the slowest moving cycle of history on which everything else rests? Could even that be at an inflection point? Maybe.

Trump has pulled the US out of the Paris climate agreement, again. The global fight against climate change will continue, but without the world’s second-largest emitter, it gets harder. The arrival of artificial general intelligence could also prove an epochal shift.

“History,” Braudel wrote, “may be divided into three movements: what moves rapidly, what moves slowly and what appears not to move at all.” Right now, events are moving almost too fast to track and the slow-moving Pax Americana is heading rapidly toward the dustbin of history. If global temperatures rise much further or machines start thinking for themselves, there will be movement even in the cycle that appears not to move at all.

Hezbollah: Friend or Foe of Lebanon

Hezbollah occupies a complex position within Lebanon’s political and social landscape, generating both support and opposition.

Arguments portraying Hezbollah as a friend of Lebanon

Resistance role:

Hezbollah emerged in the 1980s as a resistance movement against Israeli occupation, gaining legitimacy particularly after Israel’s withdrawal in 2000 and the 2006 war.

Community services:

The organization provides health care, education, and welfare services, particularly to underserved Shia populations, filling gaps left by the Lebanese state.

Political representation:

Hezbollah holds seats in parliament and ministries, thereby integrating a marginalized sectarian constituency into Lebanon’s political process.

Arguments portraying Hezbollah as a foe of Lebanon

Parallel authority:

Hezbollah maintains a powerful military structure independent of the Lebanese Armed Forces, challenging state sovereignty.

External alignment:

Its close ties to Iran and the Islamic Revolutionary Guard Corps suggest that its priorities may extend beyond Lebanese national interests.

Regional involvement:

Hezbollah’s intervention in the Syrian conflict and confrontations with Israel risk entangling Lebanon in regional wars.

Economic consequences:

Its designation as a terrorist organization by multiple Western and Arab states contributes to sanctions and international isolation, aggravating Lebanon’s economic crisis.

Hezbollah’s dual identity — as both a provider of security and services, and as an armed actor operating outside state control — creates a paradox.

For supporters, it is an indispensable defender of Lebanon.

For critics, it undermines national sovereignty and stability.

The friend-or-foe debate remains contingent on whether one prioritizes resistance against external threats or the consolidation of a sovereign Lebanese state.

 

PSX closes at record high of 154,277 points

Pakistan Stock Exchange (PSX) remained positive throughout the week, with the benchmark index posting CYTD’s 4th highest weekly return of 3.8%, closing at a record high of 154,277 points.

Market participation also increased by 19%WoW, with average daily traded volume increasing to 1,068 million shares from 899 million shares a week ago.

The rally was supported by successful China visit of prime minister, improving industrial activity, easing inflation, and strong corporate results. Cement sector led the gains, driven by a pick-up in domestic demand as local offtakes posted double-digit growth for the second consecutive month alongside rising mortgage lending. Commercial Banks followed on the back of robust results.

During the week, prime minister concluded his China visit, signing US$8.5 billion worth of MoUs and JVs at the second Pak-China investment conference.

On the macro front, August 2025 inflation came in softer than expected at 3.0%YoY against 4.1%YoY, petroleum sales rose 7%YoY on improved demand, and local phone manufacturing surged 2.1x YoY in July 2025.

At Wednesday’s T-bill auction, 1-month paper yield declined to 10.75%.

Trade deficit widened 30%YoY in August 2025 due to weaker exports.

Other major news flow during the week included: 1) PKR2.6 trillion debt repaid ahead of schedule, 2) SBP governor sees GDP growing 3.45% to 4.25% in FY26, 3) digital currency to be legalized once regulation is in place, 4) cotton arrivals increase by 9%YoY, and 5) SBP forex reserves increase to US$14.3 billion as of August 29, 2025.

Cement, Refinery, and Power generation were amongst the top performing sectors, while Jute, Synthetic & rayon, and Vanaspati & allied industries were among the laggards.

Major selling was recorded by Banks and Foreigners amounting to US$22.4 million. Individuals and Mutual funds absorbed most of the selling with a net buy of US$19.7 million.

Top performing scrips of the week were: BOP, HGFA, NBP, JVDC, and AKBL, while laggards included: PKGP, SCBPL, JDWS, IBFL, and UPFL.

According to AKD Securities, PSX is expected to remain positive in the coming weeks, with the upcoming MPC and any developments over circular debt remaining in the limelight.

The benchmark index is anticipated to sustain its upward trajectory, primarily driven by strong earnings in Fertilizers, sustained ROEs in Banks, and improving cash flows of E&Ps and OMCs, benefiting from falling interest rates and economic stability.

Top picks of the brokerage house include: OGDC, PPL, PSO, FFC, ENGROH, MCB, LUCK, DGKC, FCCL, INDU, and SYS.

 

Vessel reports electronic interference and unknown projectile in Red Sea

An unknown projectile struck the surface of the sea some distance from a vessel in the Red Sea, an area suffering “severe electronic interference,” according to a master’s report published by UKMTO.

The suspicious activity warning relates to an incident reported at 0310 hours on September 04, 178 nm northwest of Yemen’s Al Hudaydah.

The location falls well within the operational range of Yemen’s Houthis, a group whose attacks on merchant vessels has led many vessels to avoid transiting the Red Sea entirely.

After a period of relative calm in the area since the end of 2024, the Houthis began attacking ships in the area again in early July 2025, striking and sinking two vessels in the space of two days.

In the past week, the Houthis have claimed two more successful attacks on merchant ships, but both vessels have continued on their way; one ship reported the attack as having missed.

Electronic interference is not commonly reported in the Red Sea, but has regularly been reported on the other side of the Arabian Peninsula around the Strait of Hormuz.

Disruption to navigation systems such as GPS and AIS including spoofing and jamming lasted for multiple days in June as tensions boiled over between Iran and Israel.

Courtesy: Seatrade Maritime News

 

Significance of Pezeshkian’s visit to China

Iranian President Masoud Pezeshkian wrapped up a four-day visit to China on Wednesday, heading back to Tehran after attending a military parade in Beijing that marked 80 years since the end of World War II.

Pezeshkian's first stop in China was the northern port city of Tianjin, where he attended the 25th Meeting of the SCO Council of Heads of State, the largest gathering of the bloc to date. The Iranian president delivered a speech there, addressing the "unfair" global order led by the West and highlighting the need to create a new one through collaboration among the Global South.

A much-anticipated meeting between the presidents of Iran and China took place the next day. Pezeshkian told Xi Jinping that Iran was ready to work with China "under any circumstances" to elevate relations to their highest level, stressing that Beijing could count on Tehran as a "strong and determined friend and ally." Xi reciprocated, stating he sees Tehran as a "strategic partner" with a "forward-looking approach." Both sides agreed that more needed to be done to implement the 25-year cooperation plan signed in 2020.

Analysts in Iran hope that the president’s visit, during which he was accompanied by his foreign minister, economy minister, and defense minister, would lead to new military and financial deals.

This appears to be the case, as upon arriving in Tehran, Pezeshkian stated that "important," "strategic," and "vital" decisions had been made following his discussions with Xi.

"Additionally, discussions on security and defense equipment were held with the support of the defense minister, who was present during this trip, and necessary follow-ups will be carried out in this regard," Pezeshkian declared. It is believed that Iran is looking to buy air defense systems and fighter jets from China, although there is no official confirmation on what it seeks to purchase.

While Iranians have mostly focused on what the trip could bring about for Iran, the rest of the world has mainly been discussing how the SCO summit and the close interaction between India's Modi and Xi demonstrate that the split President Trump opened up between Washington and New Delhi is much larger than expected.

Trump’s former security advisor told American media that Trump has “shredded decades of effort” to pull India away from the Russian and Chinese orbit with his tariff policies. 

Furthermore, Modi's presence at the recent SCO meeting, along with other developments, is viewed as a sign that the new global order Pezeshkian has called for is approaching, or may already be in place.

"The new international order everyone has been talking about for years has almost arrived," said economic and trade analyst Majid Shakeri.

The expert said several factors point to this consolidation include: 1) the exclusion of Arab states from the Wednesday parade after their embrace of Trump during his West Asia tour earlier this year, 2) the Siberian Power Pipeline agreement signed between Russia and China this week, 3) and Beijing's announcement of its intention to establish an artificial intelligence cooperation center with the rest of the SCO.

"A crucial piece of the puzzle that is still incomplete and unclear is India's balancing act between China and America," Shakeri explained.

Pezeshkian's visit to China also included significant interactions with other world leaders. While there appeared to be no interaction with the Indian Prime Minister, Pezeshkian spent four hours in discussion with Russia's Vladimir Putin and a shorter amount of time speaking with Pakistan's Shehbaz Sharif, whose country's relationship with Iran is growing closer by the day.

Recep Tayyip Erdogan of Turkey was filmed holding onto Pezeshkian's hand while walking alongside him in a hall. The Iranian president expressed anticipation for Erdogan's visit to Tehran.

Despite recent tensions between Iran and Turkey regarding South Caucasus transportation plans and the situation in Syria, both nations appear in favor of maintaining their friendly relations.

Tajikistan’s Emomali Rahmon was also affectionate with Pezeshkian. The two countries share a significant part of their history and culture and view each other fondly.

 

The Fading Edge of Western Sanctions

Western sanctions were once the sharpest weapon in Washington and Brussels’ arsenal — a way to cripple adversaries without firing a shot. But today, their overuse and poor calibration are blunting their impact, most visibly in the case of Russia’s energy industry.

Take the recent arrival of the Arctic Mulan in southern China. On August 28, the sanctioned tanker unloaded liquefied natural gas from Russia’s Arctic LNG-2 plant — a facility buried under Western restrictions. That shipment, China’s first from the Siberian project, came just days before Vladimir Putin’s state visit to Beijing. The symbolism is unmistakable: Beijing is choosing energy security and strategic ties with Moscow over Washington’s disapproval.

Washington’s own missteps reinforce the sense that sanctions are losing their sting. In late August, President Donald Trump slapped a 25% “secondary tariff” on Indian imports of Russian crude, doubling existing duties. The gamble backfired. India not only kept buying Russian oil but also found common cause with China — a troubling development for US strategists who once counted on Delhi as a counterweight to Beijing.

The core problem is not intent but longevity. Sanctions work best when they are broad, swift, and temporary — delivering a shock that compels change before targets can adapt. But when restrictions drag on, industries build workarounds.

Russia has done so with astonishing speed, channeling crude through China and India, which now absorb 80% of its exports, and relying on “dark fleets” of tankers to bypass Western oversight. Iran and Venezuela, veterans of economic siege, have perfected similar tactics.

Meanwhile, the sheer scale of sanctions is undermining their effectiveness. Since 2017, the number of international sanctions has surged by 450%, according to LSEG Risk Intelligence. After Moscow’s 2022 invasion of Ukraine, EU sanctions on Russia jumped from zero in 2013 to more than 2,500 by 2025. Washington blacklisted over 3,100 new entities last year alone, most of them Russian. The result, enforcement has become a bureaucratic quagmire, draining multinational firms with compliance costs while Russia and its partners adapt.

In short, the West is flooding the world with sanctions — but the more it leans on this tool, the less powerful it becomes. Economic warfare cannot be waged indefinitely without diminishing returns. If sanctions are to remain credible, they must be recalibrated: fewer, smarter, and more time-bound, backed by genuine multilateral coordination.

Otherwise, the very weapon once seen as a substitute for war may become just another dull instrument in an increasingly multipolar world.