West Asia News Live: Australia’s shift and Netanyahu’s Gaza plan stir diplomatic storm

Norway’s prime minister calls for oil fund to review holding in Israeli company

Norway’s prime minister has called for the nation’s sovereign wealth fund to review its holding in an Israeli company, signalling a potential divestment based on the fund’s ethical guidelines, according to a report in Asharq Al-Awsat. The request directs the Government Pension Fund Global’s Council on Ethics to assess whether the unnamed company’s activities violate its investment framework, which prohibits involvement in severe human rights violations. This development occurs amid heightened international scrutiny of Israel following the Gaza conflict and reflects a growing trend of institutional investors applying ESG (Environmental, Social, and Governance) criteria to holdings in conflict zones. While a potential divestment may have a limited direct financial impact, it carries significant reputational risk for Israel and could encourage other major investors to re-evaluate their portfolios, potentially affecting capital flows and investor confidence in the region.

Saudi and Sri Lankan officials discuss Islamic cooperation in Riyadh

Saudi Arabia’s Minister of Islamic Affairs, Sheikh Abdullatif Al-Asheikh, hosted Sri Lankan Ambassador Omar Lebbe Ameer Ajwad and his delegation in Riyadh to discuss topics concerning Islamic affairs and ongoing cooperation between the two nations, according to a report in Arab News. Following the discussion, the Sri Lankan envoy praised Saudi Arabia’s role in supporting Islamic causes. Ambassador Ajwad specifically commended the Kingdom’s efforts to promote the values of tolerance and moderation on a global scale, noting its particular impact in Sri Lanka.

Alleged Azerbaijani ISIS member on trial for attempted synagogue attack in Baku

An Azerbaijani national with alleged ties to ISIS is currently on trial for planning an attack on the Mountain Jews Synagogue in Baku, The Times of Israel said in a report. The suspect is accused of plotting to use a Molotov cocktail in the attack, which was planned for December of the previous year.

Israeli rabbinical court grants divorce after 22 years following state intervention

A rabbinical court in Safed, Israel, has granted a divorce in what has been described as a landmark case, ending a 22-year refusal by the husband to provide a religious bill of divorce, known as a ‘get’, Israel National News says in a report. The resolution was achieved only after extraordinary state intervention, which included the imposition of criminal charges against the husband and a subsequent conditional pardon from the Israeli President. The case involved a woman classified as an ‘agunah’ (‘chained woman’), unable to remarry under Jewish law without the divorce document.

More from World

Israel’s Shin Bet denies inmate’s request to attend sister’s wedding, citing security concerns

Israel’s Shin Bet security agency has denied a Jewish inmate’s request for temporary release to attend his sister’s wedding, citing fears of potential unrest, according to a report in Israel National News. The denial was issued despite the inmate’s reported positive behavior in prison and a pending early release hearing. The inmate’s attorney, representing the legal aid group Honenu, has condemned the decision, calling it “unjust persecution”.

Gulf states manage inflation amid economic diversification efforts

Gulf states are managing a delicate balance between fostering economic growth through large-scale diversification programmes and controlling inflation, according to a report in Asharq Al-Awsat. A significant portion of inflation is imported, a consequence of currency pegs to the US dollar, reliance on imported goods, and global supply chain volatility. This forces regional central banks to often mirror US interest rate hikes, which can dampen domestic growth. Concurrently, major national development projects, such as Saudi Vision 2030, stimulate non-oil sectors but also contribute to inflationary pressures by increasing demand for labour and materials. Governments are employing substantial state intervention, including fiscal reserves and sovereign wealth funds, to subsidise costs, absorb economic shocks, and maintain stability, while navigating the impact of OPEC+ production decisions on their primary revenue streams.

Oil prices decline as OPEC+ output increase outweighs Russian supply fears

Global oil prices declined on Tuesday as planned production increases from OPEC+ members were seen to outweigh persistent fears of supply disruptions from Russia, as per a report in Asharq Al-Awsat. The market’s reaction indicates that the commitment by the alliance, which includes key West Asian producers and Russia, to raise output is providing some immediate relief to concerns over tight supply. This development has economic implications, potentially easing the inflationary pressures that have been driven by high energy costs and have prompted aggressive action from central banks globally. The move underscores the pivotal role of OPEC+ in influencing energy market stability and navigating complex geopolitical pressures between Western consumer nations and Russia.

Food aid airdropped into Gaza found to be contaminated with mould

Food aid packages delivered by international airdrops in Gaza have been found contaminated with black mould, according to a report in Al Jazeera. The incident underscores the logistical and quality control challenges of airdrops, a method used by a coalition of nations due to severe restrictions on land access. The discovery of spoiled provisions has raised concerns among donor nations about the financial and operational effectiveness of their aid strategies and represents a potential misallocation of humanitarian funds. In response, humanitarian organisations are intensifying their calls for the opening of more reliable and cost-effective land routes to ensure aid safety and mitigate public health risks for Gaza’s population.

IDF reports rise in soldier suicides since 2023, highlighting conflict’s human and economic costs

The Israeli Defence Forces (IDF) have reported 54 soldier suicides since the start of 2023, with the head of the IDF Personnel Directorate, Brig. Gen. Amir Vadmani, disclosing the figure during a Knesset session, Israel National News said in a report. While the official assessment noted the rise was not substantial enough to be considered a ‘wave’, the statistic underscores the significant psychological toll of the protracted conflict in the region, particularly since the war began in October 2023. From an economic standpoint, this rising human cost signals potential future pressures on the state budget, likely necessitating increased government expenditure on mental healthcare and long-term veteran support. For investors, such data points serve as a metric for the social and fiscal strains of sustained military engagement, potentially influencing sentiment regarding long-term regional stability and the nation’s economic outlook.

Iraqis turn to solar power amid chronic electricity grid failures

Amidst a chronic electricity crisis marked by severe and routine power outages, Iraqi citizens in both urban and rural areas are increasingly turning to private solar power systems for a reliable energy supply, as per a report in Asharq Al-Awsat. This grassroots trend underscores a widespread loss of public faith in the government’s ability to reform the beleaguered energy sector, which has long been hampered by mismanagement and corruption. While the adoption of solar technology places a significant financial burden on individual households, it is fostering a new local market for installation and maintenance services. The shift towards decentralised solar energy could also have long-term geopolitical and economic implications by potentially reducing Iraq’s strategic dependence on imported natural gas from Iran.

Water shortages threaten Türkiye’s vital tourism industry on its coasts

Türkiye is facing significant water shortages along its tourist-heavy Aegean and Mediterranean coasts, posing a direct threat to its crucial tourism industry, according to a report in Asharq Al-Awsat. The country, which is classified as ‘water-stressed’, is experiencing the effects of climate change, population growth, and increased demand from agriculture and industry, which are straining its water resources. The crisis directly impacts the profitability of the coastal tourism sector, a critical pillar of the Turkish economy that contributes substantially to the nation’s GDP and supports millions of livelihoods.

Turkish peace initiative with PKK could impact market stability and defence spending

A new peace initiative concerning the Kurdistan Workers’ Party (PKK) is being explored by a Turkish parliamentary committee, a development with potentially significant economic and market implications, as per a report in Asharq Al-Awsat. For investors, a successful resolution could signal greater political stability, potentially reducing Turkey’s country risk premium and bolstering the lira. Furthermore, a de-escalation of the decades-long conflict could allow for a redirection of substantial military spending towards other economic priorities. However, the initiative also introduces political risk; its success is uncertain given the collapse of a similar process in 2015, and any perceived concessions to the PKK risk destabilising the government’s nationalist coalition, which could create market volatility.

Iran closes public buildings and banks amid severe heatwave

The Iranian government has mandated the closure of public buildings and banks in response to a scorching heatwave sweeping the country, as per a report in Asharq Al-Awsat. This measure, aimed at safeguarding public health and managing the immense strain on the nation’s energy grid from increased cooling demands, carries significant economic implications. The shutdown disrupts daily commerce and results in lost workdays, compounding the economic hardship already faced by the public due to international sanctions and a long-standing water crisis. The event underscores the government’s challenges in providing essential services amidst intensifying climate change, which could fuel public discontent over its capacity to manage environmental and economic pressures.

Israel’s military bans Chinese-made vehicles from bases over data security fears

The Israel Defense Forces (IDF) has implemented a ban on all Chinese-made vehicles entering its bases, citing national security fears over potential data exfiltration through built-in cameras and sensors, Israel National News says in a report. This policy requires military and civilian personnel who own the affected vehicles to park them outside of base perimeters.

Saudi Arabia leverages cultural heritage in Al-Baha to boost tourism under Vision 2030

A heritage festival in the Al-Baha region of Saudi Arabia is showcasing traditional agricultural practices as part of a strategic push to develop the kingdom’s tourism sector and diversify its economy away from oil, Asharq Al-Awsat says in a report. The event, which revives historical methods like traditional plowing, is a key component of the broader Saudi Vision 2030 initiative. From an economic perspective, the festival aims to leverage the unique cultural assets of the mountainous Al-Baha region to create new tourism opportunities, support local employment, and signal a viable market for cultural tourism to potential investors. Analysts view such initiatives as a method of building national identity while simultaneously developing non-oil GDP contributors, turning intangible cultural heritage into a tangible economic asset.

Israeli prime minister reiterates war goals to new military recruits

While speaking to new recruits for the armored and combat engineering corps, Israeli Prime Minister Benjamin Netanyahu reiterated that the country’s war goals are to release all hostages and ensure Gaza no longer poses a threat to Israel, according to a report in Israel National News. He emphasized to the recruits that to achieve these objectives, it is still necessary to complete the ‘enemy’s defeat in Gaza.’

UN Security Council to address Gaza conflict amid minor easing of trade restrictions

The United Nations Security Council is set to discuss the ongoing conflict in Gaza, a development that introduces a new diplomatic variable for markets assessing geopolitical risk in West Asia, as per a report in The New York Times. Concurrently, Israel has announced a marginal easing of its economic blockade by permitting some private-sector goods to enter the territory. From a financial perspective, this move, while limited, will be analysed for its potential to slightly revive commercial activity and as a possible concession to international pressure. The situation remains a key concern for investors, impacting regional stability, shipping routes, and energy market sentiment, with any outcome from the UNSC potentially influencing risk perceptions.

Halachic ruling permits use of advanced prosthetics on Shabbat in Israel

A new halachic ruling in Israel has approved the use of advanced bionic limbs on Shabbat and for other religious commandments, Israel National News said in a report. This development is considered a major step for the inclusion of wounded soldiers and victims of terror, many of whom require such prosthetics following injuries sustained in recent conflicts. The ruling addresses religious laws that restrict the use of electronic devices on Shabbat, providing a solution that allows individuals with advanced prosthetics to maintain full religious observance.

German football club cancels signing of Israeli striker after social media controversy

German football club Fortuna Düsseldorf announced it will not proceed with the signing of Israeli striker Shon Weissman after his social media posts concerning Gaza drew significant criticism from the club’s supporters, Haaretz said in a report. The decision reverses the club’s initial plan to sign the Israeli national team player following the dissent from its fan base.

Jaffa shops strike demanding an end to the war in Gaza

Shops in the city of Jaffa went on strike on Tuesday, part of a protest demanding that the Israeli government end its ongoing military operations in Gaza, Haaretz said in a report. The action, organized under the slogan “No Business as Usual,” is a form of internal dissent in which activists are reportedly seeking to create wider disruption to increase pressure and draw more attention to their cause.

Israeli defence minister asserts political control over military war strategy

Israeli Defence Minister Israel Katz has stated that the Israel Defence Forces (IDF) must and will carry out all directives issued by the political leadership regarding the ongoing war in Gaza, Israel National News said in a report. The statement was made during a visit to military forces in Gaza amid reports of friction between the government and the IDF command over war strategy. This public assertion of civilian supremacy over the military comes as the government faces both domestic and international pressure over its war aims and post-war planning.

Israeli security cabinet delays meeting on Gaza plan, smaller forum with IDF chief planned

The postponed security cabinet meeting was scheduled to discuss a potential “Gaza takeover.” The full session will be replaced by a more limited forum that includes the Chief of the General Staff of the Israel Defense Forces. This development takes place on what the source identifies as day 669 of the war that began on October 7, 2023.

UK Jewish group calls Israeli aid measures in Gaza ‘long overdue’

The Board of Deputies of British Jews has issued a statement calling recent Israeli efforts to facilitate more humanitarian aid into Gaza ‘long overdue’, The Times of Israel says in a report. This new position is seen as a significant shift for the organisation, which, as recently as April, had disciplined members for signing an open letter critical of Israel’s conduct in the war. The statement acknowledges the aid measures but criticises their timing, reflecting the severe humanitarian crisis in Gaza. This development highlights a change in public stance from a major diaspora Jewish group and aligns with broader international pressure on Israel to improve aid access.

Residents of kibbutz ravaged on Oct. 7 petition against government move to end housing subsidies

Residents of Kibbutz Nahal Oz, which was devastated during the October 7, 2023 attacks, have filed a petition with the High Court of Justice to block a government decision that would force their return by ending housing subsidies, The Times of Israel said in a report. The community members argue that a sense of security has not been re-established in the kibbutz, which is located just 800 metres from the Gaza border. The petition challenges the state’s move to cease financial support for their temporary housing elsewhere, asserting that conditions are not yet safe for them to go back to their homes.

Jerusalem to impose congestion fee after rail projects are completed

Jerusalem will implement a congestion fee to discourage private car use once its public transportation projects are finished, Mayor Moshe Lion has announced, as per a report in Israel National News. The mayor stated the city will “make it difficult for those who use a car to enter the city,” emphasizing that the measure is designed to provide relief from traffic and will be enacted only after the new light rail and train systems are operational, offering viable alternatives to driving.

Iran says it has detained a sabotage cell linked to an exiled opposition group

Iranian authorities have detained three alleged members of a ‘sabotage cell’ linked to the exiled People’s Mujahedeen Organization of Iran (PMOI/MEK), according to a report in the Times of Israel. A prosecutor stated that the individuals were planning to ‘disrupt public order’ and are now undergoing ‘specialized interrogation’. The announcement frames the arrests as a response to threats from the exiled opposition group.

Israel reportedly working to reduce US-Russia tensions

The office of Israeli Prime Minister Benjamin Netanyahu has reportedly undertaken intensive work in recent weeks to reduce tensions between the United States and Russia over the war in Ukraine, Israel National News says in a report. This diplomatic effort is understood to be part of Israel’s ongoing strategy to balance its primary alliance with the US against its security coordination requirements with Russia, which maintains a significant military presence in neighbouring Syria.

Journalists in Gaza face death, displacement and hunger while covering conflict

Journalists operating within Gaza are confronting a severe and multifaceted crisis, marked by constant threats to their lives, forced displacement from their homes, and acute hunger, Asharq Al-Awsat said in a report. The report highlights that media personnel are not only caught in the line of fire while documenting events but are also victims of the broader humanitarian catastrophe unfolding in the region. This includes the struggle to find food and safe shelter for themselves and their families, severely impeding their ability to continue their essential work of reporting from the conflict zone.

Iraq delays approval of new PMF law following US objection

Iraq has delayed the approval of a proposed new law for the Popular Mobilisation Forces (PMF) after facing objections from the United States, as per a report in Asharq Al-Awsat. The legislation, which would further define the role and legal status of the state-sponsored militia umbrella organisation, will now be deferred for consideration by the next Iraqi parliament. The US objection is reportedly linked to concerns over the influence of certain Iran-aligned factions within the PMF. This development occurs amid a prolonged political stalemate in Iraq following the October 2021 elections, which has prevented the formation of a new government.

First Guillain-Barré deaths reported in Gaza amid outbreak warnings

The first reported deaths from Guillain-Barré Syndrome (GBS) have occurred in Gaza, raising fears of a wider outbreak of the rare neurological disorder, as per a report in Asharq Al-Awsat. The emergence of the syndrome, which is often triggered by infections, is being linked to the collapse of the region’s healthcare infrastructure, widespread displacement into overcrowded shelters, and poor sanitation conditions resulting from the ongoing conflict. The ability to diagnose and treat the complex condition is severely hampered by the blockade, which restricts the entry of essential medical supplies and personnel.

US envoy urges calm in Syria, with implications for regional markets and oil prices

A United States envoy has made a public call for calm and the pursuit of dialogue to resolve ongoing conflicts in Syria, according to a report in Asharq Al-Awsat. This diplomatic overture is being watched closely by financial markets for its potential impact on geopolitical stability in West Asia. A reduction in regional tensions could lower the risk premium currently factored into global oil prices. Furthermore, any successful de-escalation may influence investor sentiment towards regional bourses and create long-term prospects for international firms in post-conflict reconstruction, should a stable political settlement be achieved. The statement signals a continued US diplomatic engagement in the protracted conflict, the outcome of which holds significant consequences for energy markets and companies with interests in the region.

Tel Aviv Stock Exchange to adopt Monday-Friday trading week from 2025

The Tel Aviv Stock Exchange (TASE) will transition to a Monday-to-Friday trading week, ceasing its traditional Sunday trading, effective from January 5, 2025, as per a report in Israel National News. The change, approved by the Israel Securities Authority and Finance Minister Bezalel Smotrich, is designed to align the Israeli market with global financial centres, thereby reducing operational complexities for international investors. This move aims to increase the TASE’s competitiveness and liquidity by eliminating the ‘gap’ day on Sundays when most international markets are closed, a factor that has historically complicated trading and hedging for foreign participants. The policy is part of a broader government strategy to attract foreign direct investment and deepen Israel’s integration into the global economy.

Saudi Aramco reports 22% drop in second-quarter profit amid lower oil prices

Saudi Aramco’s profit for the second quarter dropped by 22% to 85 billion riyals ($22.67 billion), marking a sustained period of declining earnings since its record results in late 2022, according to a report in Al-Monitor. In its quarterly statement, the state-owned oil giant attributed the decrease primarily to lower crude oil prices, as well as reduced prices for refined and chemical products. This financial performance highlights the impact of global energy market fluctuations on the Saudi economy, which heavily relies on Aramco’s revenues to fund its national budget and economic diversification initiatives.

Australia signals policy shift on Palestinian statehood, affecting diplomatic and economic relations

Australian Foreign Minister Penny Wong has stated that recognising a Palestinian state is a “matter of when, not if,” citing the risk of a two-state solution becoming unviable, according to a report in Israel National News. This policy shift by Prime Minister Anthony Albanese’s government, which includes pledges of aid, signals a more active diplomatic role in West Asia. The move has drawn criticism from the domestic opposition, which warns it could empower Hamas. The decision carries potential economic implications, risking strained trade and diplomatic ties with Israel while potentially strengthening Australia’s relationship with Arab and Muslim-majority nations.

Saudi Arabia promotes endowment culture to support Vision 2030 economic goals

Saudi Arabia’s General Authority for Awqaf (GAA) is spearheading an initiative to promote and regulate the endowment (Waqf) sector, aiming to align these charitable trusts with national development objectives, Asharq Al-Awsat says in a report. This policy is a key component of Crown Prince Mohammed bin Salman’s Vision 2030, which seeks to diversify the economy away from oil and increase the non-profit sector’s contribution to GDP. The move strengthens state oversight over these traditionally semi-autonomous financial resources, directing philanthropic efforts towards national priorities in areas such as healthcare and education. By professionalising the management of Awqaf, the government intends to unlock underutilised assets for strategic economic and social development projects.

House Democrats call for US recognition of Palestinian statehood

A group of more than a dozen US House Democrats, led by Representative Ro Khanna, is formally urging the Trump administration to recognise Palestinian statehood, The Guardian says in a report. A draft letter, addressed to President Donald Trump and the Secretary of State, is backed by progressives including Pramila Jayapal, Greg Casar, and Maxwell Frost. The letter asserts that Palestinian rights ‘as a people and nation’ must be upheld, highlighting a growing push within the Democratic party to alter long-standing US policy on the Israeli-Palestinian conflict.

Israel implements new system for private sector goods to enter Gaza under tight regulation

Israel has implemented a new system to permit private sector goods to enter Gaza under tight regulation, a move designed to increase humanitarian aid while reducing reliance on international organisations, as per a report in Israel National News. The initiative involves the resumption of private sector goods entry, which will be subject to strict Israeli security checks and approval processes for both the merchandise and the companies involved. This new framework is intended to supplement existing aid channels and increase the flow of essential goods into the territory.

Thousands of Israelis visit Joseph’s Tomb in Nablus for religious ceremony

Thousands of Israelis visited Joseph’s Tomb in the Palestinian city of Nablus overnight for a traditional Jewish haircutting ceremony for a three-year-old boy, Israel National News said in a report. The visit to the religious site, which is located in Area A of the West Bank under full Palestinian Authority control, was coordinated and secured by the Israeli military. Such large-scale visits to the tomb, a frequent flashpoint for Israeli-Palestinian tensions, require significant military escort due to the area’s political sensitivity and security risks.

Two arrested in UK on suspicion of killing Saudi student

Two people have been arrested in Cambridge, UK, in connection with the death of a Saudi student, Asharq Al-Awsat says in a report. The incident is being treated as a criminal matter under the jurisdiction of the British legal system and is being investigated by local law enforcement. Saudi authorities are expected to provide consular support to the victim’s family and monitor the judicial process.

Australia’s Palestine policy shift: what it means for markets and regional stability

Australia’s government has signalled a significant policy shift, with Foreign Minister Penny Wong stating that the recognition of a Palestinian state is ‘a matter of when, not if’, as per a report in Al Jazeera. This diplomatic development contributes to the rising geopolitical temperature in West Asia, a key factor for investors monitoring potential impacts on oil prices and global supply chains. The decision also suggests a policy divergence within the ‘Five Eyes’ intelligence alliance on a critical foreign policy issue, which could introduce a degree of market uncertainty. From a business perspective, the move may strain bilateral trade and investment relations between Australia and Israel, particularly within the technology and defence sectors, adding a layer of complexity for corporations operating in or exposed to the region.