US orders departure of staff from Middle East

The United States has ordered the departure of nonessential staff from several diplomatic and military posts across the Middle East, citing rising regional tensions and the growing uncertainty around stalled nuclear talks with Iran. The State Department on Wednesday directed nonessential personnel to leave the US Embassy in Baghdad.

It also authorized voluntary departure for staff and family members in Bahrain and Kuwait. Defense Secretary Pete Hegseth also approved the optional exit of military dependents across the region, according to US Central Command.

“These decisions are based on the most recent security assessments and our unwavering commitment to the safety of Americans abroad,” said White House spokeswoman Anna Kelly.

The move comes amid faltering negotiations with Iran over its nuclear program, which US officials say appears to be nearing a critical impasse.

The sixth round of talks, tentatively planned for this weekend in Oman, now appears unlikely to proceed.

President Donald Trump, speaking on the "Pod Force One" podcast, voiced skepticism about the potential for a deal. “I’m getting more and more less confident about it,” he said, blaming delays on Tehran and hinting at potential military action should diplomacy fail.

In response, Iran’s Defense Minister Gen. Aziz Nasirzadeh warned that any conflict would place all US bases in the region within Iranian reach. “If conflict is imposed on us, the opponent’s casualties will certainly be more than ours,” he said, adding that Tehran was fully prepared to retaliate.

The situation has also prompted maritime security concerns. The UK Maritime Trade Operations center issued a warning to vessels transiting the Arabian Gulf, Gulf of Oman, and Strait of Hormuz, citing potential military escalation.

Meanwhile, the International Atomic Energy Agency is considering a motion to censure Iran over its nuclear activities — a move that could reactivate UN sanctions suspended under the 2015 nuclear deal, which the Trump administration exited during his first term.

While the US drawdown affects only limited personnel, it signals growing concern about the stability of the region. Iraqi officials, however, downplayed the threat, noting no direct indicators of danger in Baghdad.

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Trump biggest opponent of two state solution

US President Donald Trump's administration is discouraging governments around the world from attending a UN conference next week on a possible two-state solution between Israel and the Palestinians, reports Reuters.

The diplomatic demarche, sent on Tuesday, says countries that take "anti-Israel actions" following the conference will be viewed as acting in opposition to US foreign policy interests and could face diplomatic consequences from Washington.

The demarche, which was not previously reported, runs squarely against the diplomacy of two close allies France and Saudi Arabia, who are co-hosting the gathering next week in New York that aims to lay out the parameters for a roadmap to a Palestinian state, while ensuring Israel's security.

"We are urging governments not to participate in the conference, which we view as counterproductive to ongoing, life-saving efforts to end the war in Gaza and free hostages," read the cable.

President Emmanuel Macron has suggested France could recognise a Palestinian state in Israeli-occupied territories at the conference. French officials say they have been working to avoid a clash with the US, Israel's staunchest major ally.

"The United States opposes any steps that would unilaterally recognize a conjectural Palestinian state, which adds significant legal and political obstacles to the eventual resolution of the conflict and could coerce Israel during a war, thereby supporting its enemies," the cable read.

It is on record that the US for decades backed a two-state solution between the Israelis and the Palestinians that would create a state for Palestinians in the West Bank and Gaza alongside Israel.

Trump, in his first term, was relatively tepid in his approach to a two-state solution, a longtime pillar of U.S. Middle East policy. The Republican president has given little sign of where he stands on the issue in his second term.

On Tuesday, the US ambassador to Israel, Mike Huckabee, a long-time vocal supporter of Israel, said he did not think an independent Palestinian state remained a US foreign policy goal.

 

Message of humanity reached the world

For the past week, Madleen Kulab, the 30-year-old fisherwoman and inspiration for the name of the Madleen aid ship, had followed the vessel’s journey with a mixture of hope and anxiety as it sailed towards Gaza’s shores in an attempt to break Israel’s blockade.

Throughout its voyage, Kulab remained in close contact with organizers of the Freedom Flotilla Coalition (FFC), which launched the vessel.

But her guarded optimism gave way to heartbreak when she woke Monday to the news that Israeli forces had intercepted the ship in international waters and detained all 12 people on board, including the Swedish climate activist Greta Thunberg.

“I was deeply disheartened,” Kulab told Al Jazeera. “I strongly anticipated this scenario, but I was truly hoping for a miracle that somehow the ship would break the blockade and reach Gaza.”

The night before the ship was intercepted, Kulab had spoken to one of the 12 people on board, Rima Hassan, a member of the European Parliament from France. Hassan, who is of Palestinian origin, told Kulab over a video call that her biggest dream was to visit Gaza.

“Her words really moved me, the way she’s devoted her life to the Palestinian cause,” Kulab said.

“And yet, that simple dream to visit Gaza has been made impossible by Israel.”

 

Pakistan: Federal Budget FY26 Initial Reactions

The finance minister promised “strategic direction” and the FY26 Budget has a coherent thought process towards that aim. The formal economy - already overtaxed - appears to have been spared, and the overall thrust is towards expanding the tax net by targeting non tax filers and removing exemptions.

According to Intermarket Securities, there is relief - albeit minor - for the salaried class and small/ medium corporates, while non-tax filers will face severe impediments in purchasing property and 4-wheelers, as well as retaining bank accounts.

Retailers are being focused on too, with e-commerce/ online marketplaces being formally brought into the tax net, and there is a push for improving domestic productivity with the reduction of custom duties on multiple lines.

Discipline under the IMF program has continued to sustain. Instead of stepping the foot on the growth accelerator too quickly (the FY26 GDP growth target is a modest 4.2%), the Budget focuses on increasing tax to GDP and curtailing current expenditure.

The projected fiscal deficit of 3.9% of GDP may ultimately prove to be too ambitious (in part because of an optimistic non-tax revenue target), but Pakistan should still deliver its 3rd straight primary surplus - which should hold more importance for the IMF.

Moreover, despite risks to the headline fiscal deficit, the projected development expenditure for once does not appear to be completely out of reach.

The stock market is anticipated to react positively to the Budget. There has been no change to the tax rate on dividends and capital gains, which remains at 15%. This is now more favorable as compared to fixed income investments, WHT on profit on debt has been raised to 20%. Domestic liquidity is expected to continue to gravitate towards equities.

Stabilization achieved in FY25

The economy stabilized in FY25, evidenced by inflation coming off sharply, the current account swinging into surplus (a rarity in Pakistan), and the buildup in foreign exchange reserves.

GDP growth was modest in FY25, on weak agriculture dynamics and anemic industrial growth. A low base should help agriculture rebound in FY26 while manufacturing should benefit from lower interest rates.

The government aims moderate and more sustainable economic growth in Pakistan, backed by a modest current account deficit. This discipline is important to avoid the frequent balance of payment crises of the last 15 years.

Pakistan estimates a fiscal deficit of 3.9% of GDP in FY26 as against 5.6% in FY25. This improvement is premised on a broadening of the tax net and discipline on current expenditure.

While the headline fiscal deficit appears ambitious (SBP profits may fall due to lower interest rates), Pakistan should post its 3rd straight primary surplus in FY26. Importantly, the primary balance should remain in surplus.

CPI projections appear realistic, with inflation expected to converge towards the long-term mean. However, this likely dampens prospects for large cuts in the interest rates, which has already halved from an all-time high of 22% last year to 11% at present.

Iran seizes four tankers smuggling oil

Iranian naval forces have seized four tankers in the Persian Gulf, thwarting an attempt to smuggle thousands of liters of oil.

Ebrahim Taheri, a prosecutor in Hormozgan Province, announced the operation on Tuesday, detailing how naval patrols, backed by a marine commando unit, successfully intercepted the vessels.

The operation led to the discovery and confiscation of significant quantities of fuel found both within the tankers and in accompanying large fuel containers.

The seized vessels have been turned over to the National Iranian Oil Products Distribution Company (NIOPDC). This recent action echoes a prior incident on March 31, where the Islamic Revolution Guards Corps (IRGC) Navy apprehended two foreign tankers transporting over three million liters of smuggled diesel fuel, resulting in the arrest of all 25 crew members.

Iran grapples with rampant fuel smuggling activities, both by land and sea. This is driven by the country's heavily subsidized fuel prices, which are among the lowest globally, creating a large price difference with neighboring countries. The ongoing smuggling operations are a persistent challenge for Iranian authorities seeking to control the illegal outflow of the country’s subsidized resources.

 

Donald Trump Aspiring "Field Marshall"

According to media reports, hundreds of US Marines arrived in Los Angeles overnight and more were expected on Tuesday under orders from President Donald Trump, who has also activated 4,000 National Guard troops to quell protests despite objections from California Governor Gavin Newsom and other local leaders.

The city has seen days of public outrage since the Trump administration launched a series of immigration raids on Friday, though local officials said the demonstrations on Monday were largely peaceful.

About half of the roughly 700 Marines that Trump ordered to Los Angeles arrived on Monday night, and the remaining troops will enter the city on Tuesday, a US official told Reuters.

Los Angeles Mayor Karen Bass told KABC that more than 100 people had been arrested on Monday but that the majority of protesters were nonviolent.

The Marines will protect federal property and personnel alongside Guard troops, US Northern Command said in a statement announcing the move. There were approximately 1,700 Guard troops in greater Los Angeles as of Monday, with more on the way.

Trump has justified his decision to deploy active military troops to Los Angeles by describing the protests as a violent occupation, a characterization that Newsom and Bass have said is grossly exaggerated.

Newsom accused Trump of sending troops to deliberately inflame the situation and said the president's actions made it more difficult for local law enforcement to respond to the demonstrations.

In a social media post on Tuesday morning, Trump said Los Angeles would be "burning to the ground right now" if he had not deployed troops to the city.

Since protests broke out on Friday they have been largely peaceful, although there have been isolated clashes, with some demonstrators throwing rocks and other objects at officers, blocking an interstate highway and setting several cars ablaze. Several businesses were looted, including an Apple store and a CVS pharmacy. Police have responded by firing projectiles such as pepper balls, as well as flash-bang grenades and tear gas.

Police said they had arrested 21 people on Sunday on charges including attempted murder with a Molotov cocktail and assaulting an officer, and officials said they expected more arrests after reviewing video.

In a statement on Monday, Los Angeles Police Chief Jim McDonnell said the department had not been notified that any Marines were traveling to the city and that their arrival "presents a significant logistical and operational challenge."

Trump's Marine deployment escalated his confrontation with Newsom, who filed a lawsuit on Monday asserting that Trump's activation of Guard troops without the governor's consent was illegal. The Guard deployment was the first time in decades that a president did so without a request from a sitting governor.

The use of active military to respond to civil disturbances is extremely rare.

"This isn't about public safety," Newsom wrote on X on Monday. "It's about stroking a dangerous President's ego."

The top Democrat on the Senate Armed Services Committee, Senator Jack Reed, said he was "gravely troubled" by Trump's deployment of active-duty Marines.

"Since our nation's founding, the American people have been perfectly clear, we do not want the military conducting law enforcement on US soil," he said.

U.S. Marines are trained for conflicts around the world - from the Middle East to Africa - and are also used for rapid deployments in case of emergencies, such as threats to US embassies.

In addition to combat training, which includes weapons training, some units also learn riot and crowd control techniques.

 

 

 

 

Iran obtains Israeli nuclear secrets

Iran claims it has obtained a large batch of information on Israel’s nuclear program, its intelligence minister said on Sunday, without providing any evidence to support it, reports Euronews.

Speaking to Iranian state television after a cabinet meeting, Esmail Khatib said the Intelligence Ministry had acquired “an important treasury of strategic, operational and scientific intelligence” from Israel, which he said had been “transferred into the country with God’s help.”

Khatib alleged that thousands of documents had been seized, including information related to Europe, the US and other individual countries, though he did not explain how the intelligence was obtained.

Khatib, a Shiite cleric who was sanctioned by the US Treasury in 2022 for his alleged involvement in cyber espionage, said the documents would be made public soon. He claimed they were retrieved through “infiltration” and “access to sources,” but offered no specifics or proof.

The announcement, which came days before Tehran is expected to face renewed diplomatic pressure over its own atomic activities appears to be aimed at countering a high-profile Israeli intelligence operation in 2018.

At the time, Israeli Prime Minister Benjamin Netanyahu said his agents had smuggled out a “half-ton” of documents from Iran concerning its nuclear program.

The operation was cited by US President Donald Trump when he withdrew the US from the 2015 nuclear accord with Iran.

The latest Iranian claims come as the board of governors at the International Atomic Energy Agency (IAEA) prepares to meet this week, with Western nations reportedly planning to censure Iran over its failure to clarify long-standing questions about its nuclear activities.

Such a move could lead to the issue being referred to the UN Security Council and potentially trigger the reimposition of UN sanctions under the “snapback” mechanism outlined in the 2015 deal.

Iran has signaled it will reject a US-backed proposal after five rounds of nuclear talks, raising concerns of a renewed crisis.

Tehran is currently enriching uranium up to 60% purity — just short of the 90% level needed for nuclear weapons — and has stockpiled enough material to build several bombs.

Without an agreement, analysts warn that Iran’s already struggling economy could worsen further, potentially fuelling domestic unrest.

The risk of Israeli or US military action against Iranian nuclear sites also remains, amid fears that Tehran could sever cooperation with the IAEA and dash toward developing a nuclear weapon.