West Asia News Live: Saudi diplomacy gains momentum amid rising instability in Syria, Gaza

Regional instability in Syria and Gaza heightens economic risks as Saudi Arabia steps up diplomatic efforts

Heightened instability in Syria and Gaza is prompting increased Saudi Arabian diplomatic engagement, including reaffirming support for a Palestinian state as a condition for any potential normalisation of relations with Israel, according to a report in Firstpost. A new United Nations report has identified Syria as a growing strategic base for Islamic State and al-Qaida, a development signalling increased geopolitical risk and the potential for economic disruption across West Asia. The crisis is also drawing international responses, including sanctions from the US and EU, placing pressure on regional powers like Saudi Arabia and the UAE to intensify diplomatic efforts to prevent wider instability that could negatively impact regional markets and trigger significant refugee flows.

Pro-Palestine fundraising event in Australia cancelled over ‘credible threat’

A pro-Palestine fundraising event scheduled to take place in Newcastle, Australia, was cancelled after police informed the venue of a ‘credible threat’, The Guardian said in a report. The ‘Make Some Noise’ charity event was organised by the Palestine Action Group Muloobinba (PAGM) to raise funds for humanitarian aid in Gaza. Following the cancellation, the organisers accused the police of ‘bullying tactics’ and a lack of transparency regarding the nature of the threat. This incident, the second of its kind in a week, highlights the significant security and operational risks for businesses hosting events related to sensitive geopolitical issues. Such cancellations may create a chilling effect, making venues more hesitant to host politically-linked functions due to potential security costs and business disruption, thereby impacting both local commerce and charitable fundraising efforts.

Israeli military to investigate the shooting deaths of two girls in Gaza

The Israeli military will examine the cases of two girls, Layan and Mira, who were shot and killed in Gaza in proximity to IDF soldiers, according to a report in BBC. The Israeli military has stated that intentional harm to civilians is prohibited and that the authorities will review these specific incidents. The report places these deaths within the wider context of dozens of other child shootings in the conflict zone, underscoring the severe risk to civilians amidst the ongoing Israel-Hamas war.

Jerusalem zoo worker seriously injured in leopard attack

An employee at the Biblical Zoo in Jerusalem was seriously injured on Friday morning following an attack by a leopard, Israel National News says in a report. The worker sustained neck injuries and was transported to a hospital while unconscious and in serious condition.

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Israel reports cancer research development with biotech and diplomatic implications

A new method to reprogramme immune cells to combat cancerous cells has been developed in Israel, Haaretz says in a report. The report notes this development in immunotherapy could reinforce Israel’s position as a hub for biotechnology and attract foreign investment. It also highlights the discovery as an opportunity for scientific and medical collaboration with signatories of the Abraham Accords, such as the UAE and Bahrain, through joint research and business ventures. The advance is framed in the report as an example of health diplomacy being used for economic and strategic benefit.

Zarif’s nuclear pact proposal signals potential diplomatic shift under new Iranian leadership

Former Iranian Foreign Minister Javad Zarif has proposed a UN-endorsed regional forum for civil nuclear cooperation, a move seen as a significant diplomatic signal from the new administration of President Masoud Pezeshkian, according to a report in The Guardian. The proposal, aimed at resolving the impasse over Iran’s nuclear programme, comes amid stalled JCPOA negotiations and heightened regional tensions. From a market perspective, any credible step towards de-escalation could reduce the geopolitical risk premium affecting oil prices and regional investments. However, the initiative faces deep scepticism from regional powers like Saudi Arabia and Israel, who will demand that any agreement also address Iran’s ballistic missile programme and support for proxy forces. For international businesses, the proposal represents a potential, albeit long-term, pathway towards the easing of US sanctions, which have severely hampered economic activity and foreign investment in Iran.

Demobilized Israeli soldiers work to rebuild a damaged kibbutz on the Lebanon border

A group of 10 recently demobilized Israeli soldiers is working to rebuild Kibbutz Manara on the Lebanon border to honor fallen friends, according to a report in The Times of Israel. The community suffered extensive damage during the conflict with Hezbollah, with 75% of its buildings affected. Following evacuations, only 40% of the kibbutz’s population has returned, and the initiative by the former soldiers aims to revitalize the community.

Portugal mulls recognition of Palestinian state following moves by other EU nations

The Portuguese government is considering the formal recognition of a Palestinian state, with the prime minister initiating consultations with the nation’s president and other political leaders on the matter, Israel National News says in a report. This move follows the recent decision by fellow European nations Spain, Ireland, and Norway to formally recognise Palestinian statehood. The deliberation in Lisbon occurs amid a backdrop of increased diplomatic activity at the United Nations, where the General Assembly recently supported Palestine’s bid for enhanced rights. Such a step by Portugal could realign its foreign policy, potentially straining diplomatic and economic relations with Israel and the United States, whilst also highlighting growing divisions on the issue within the European Union.

Israeli minister Bezalel Smotrich rejects partial hostage deals, calls for ‘total victory’ over Hamas

Israeli Finance Minister Bezalel Smotrich has declared he will not support any partial hostage deal with Hamas, advocating instead for continued military action until “total victory”, Israel National News said in a report. Speaking at the Vision Conference, Smotrich, who is also a minister in the Defense Ministry, stated that Israel must choose between continuing its military campaign or succumbing to external pressures. This hardline stance signals a rejection of current international diplomatic efforts aimed at securing a phased hostage release and a temporary ceasefire.

Saudi Arabia’s welcome of Palestinian statehood recognition signals shifting regional dynamics for investors

Saudi Arabia has officially welcomed the stated intention of Canada and Malta to recognise the State of Palestine, a development with significant implications for regional economic stability and investor sentiment, as per a report in Asharq Al-Awsat. This move, following similar recognitions by Spain, Ireland, and Norway, increases diplomatic pressure on Israel, potentially creating market uncertainty and affecting foreign investment. For Saudi Arabia, the announcement reinforces its diplomatic standing in the Arab world, a key factor in its strategic economic initiatives and its position as a stabilising force in global energy markets. The growing divergence between the US and key allies like Canada, now under Prime Minister Mark Carney, on this issue could also influence coordinated international economic policies related to West Asia.

Saudi Arabia dispatches additional humanitarian aid convoy to Gaza

Saudi Arabia has dispatched an additional relief convoy with humanitarian supplies for the Gaza Strip to address the severe humanitarian crisis in the territory, according to a report in Asharq Al-Awsat. The aid delivery is intended to help alleviate widespread shortages of food, water, and medicine for the population in the territory, which have been exacerbated by the ongoing conflict.

Abu Dhabi secures 10-year exclusive rights for Sphere venues in MENA region

Abu Dhabi has secured exclusive rights to develop and operate Sphere entertainment venues across the Middle East and North Africa for at least 10 years, according to a report in Skift. The agreement, disclosed in a US Securities and Exchange Commission filing by Sphere Entertainment, grants the exclusive licence to Abu Dhabi’s Department of Culture and Tourism. This right will commence after the opening of the planned Sphere Abu Dhabi and covers the entire MENA region, positioning the emirate as the sole partner for the immersive entertainment concept in that geographic area for the next decade.

Saudi team participates in international nuclear science olympiad in Malaysia

A team representing Saudi Arabia is taking part in the International Nuclear Science Olympiad hosted in Malaysia, Asharq Al-Awsat said in a report. The event is an academic competition for students centered on the fundamental principles of nuclear science.

US envoy says Syria is cooperating with FBI investigation into American’s death

US special envoy for Syria Tom Barrack has stated that the Syrian government is fully cooperating with an FBI investigation into the death of an American citizen during recent unrest, Al-Monitor says in a report. This direct engagement comes despite the US having officially severed diplomatic relations with Damascus in 2012 and maintaining extensive sanctions against the Syrian regime. The involvement of a special envoy, a role used in the absence of formal diplomatic ties, is consistent with the current state of US-Syria relations.

US to impose 15% tariff on Israeli goods starting Friday

The United States administration under President Donald Trump has signed an executive order imposing a 15% tariff on Israeli goods, which is set to take effect on Friday. The new rate represents a decrease from a 17% level that was announced in April. The 15% tariff is higher than the 10% rate that Israel had reportedly hoped for.

Saudi and Palestinian foreign ministers sign memoranda of understanding to bolster cooperation

The foreign ministers for Saudi Arabia and the Palestinian Authority have signed several memoranda of understanding (MOUs) aimed at strengthening bilateral relations and cooperation, Asharq Al-Awsat says in a report. These agreements serve as formal expressions of intent to lay the groundwork for future collaboration. The signing reaffirms Saudi Arabia’s diplomatic support for the Palestinian Authority amid broader regional dynamics, including Riyadh’s stated position that progress toward a Palestinian state is a prerequisite for any potential normalization of relations with Israel.

Madinah book fair 2025 launches with over 300 publishers as part of Vision 2030 strategy

The 2025 Madinah Book Fair has been launched, featuring participation from over 300 international and local publishing houses, Asharq Al-Awsat says in a report. The event is a key component of Saudi Arabia’s Vision 2030 strategy, which aims to diversify the national economy beyond the oil sector by fostering cultural development and enhancing tourism. Analysts note that the fair serves as a strategic move to attract foreign investment into the Kingdom’s cultural and entertainment sectors, create new employment opportunities, and bolster its soft power credentials. The event’s location in the holy city of Madinah is also intended to add a unique cultural dimension to its established religious tourism market, positioning the Kingdom as a significant regional cultural centre.

UN report flags rising terror risk in Syria, signalling heightened geopolitical instability for West Asia

A new UN report has identified Syria as a growing strategic base for Islamic State and al-Qaida, a development that signals heightened geopolitical risk and potential economic instability across West Asia, Military.com said in a report. The findings from UN experts suggest that despite the most intense current threat residing in Africa, the re-emergence of Syria as a hub for planning external operations presents a significant security challenge. For financial markets, this points to sustained volatility in a key energy-producing region, potentially impacting oil prices and requiring businesses to factor in increased security costs and supply chain disruptions. The report underscores the persistent instability in Syria, which continues to deter long-term investment and complicates regional economic recovery efforts.

Israel to recall most diplomats from UAE amid heightened security tensions

Israel’s National Security Council has sharpened its travel warning for the United Arab Emirates, prompting a decision to recall most Israeli diplomats from the country, Israel National News said in a report. This action stems from heightened security tensions linked to the wider regional fallout from the Israel-Hamas war. The move represents a significant setback for the 2020 Abraham Accords, which normalized relations and were intended to foster deep economic and business ties. From a market perspective, the recall challenges the UAE’s reputation as a secure regional business hub and signals to investors that diplomatic and commercial relationships remain vulnerable to geopolitical instability, potentially impacting tourism and investment flows between the two nations.

Slovenia imposes total ban on weapons trade with Israel over Gaza conflict

Slovenia has announced it will ban all weapons trade with Israel, making it the first European Union member state to impose such a comprehensive embargo in response to the Gaza conflict, Israel National News says in a report. While the direct financial and material impact on Israel’s defence industry is expected to be negligible due to the minimal arms trade volume between the two nations, the decision carries significant diplomatic weight. The move highlights the growing international pressure on Israel and exposes deepening policy divisions within the EU, where other members like Belgium and Spain had previously only suspended specific arms export licences. For advocates of arms embargoes, Slovenia’s action represents a notable success that could encourage other nations to adopt similar policies.

Famine in Sudan’s Darfur signals escalating regional instability and risk to key trade routes

More than a dozen children have died due to severe food shortages in a camp in Sudan’s Darfur region, where famine has now been declared, according to a report in BBC. This humanitarian catastrophe stems from the protracted civil war between the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF), which has devastated the nation’s infrastructure and deliberately obstructed humanitarian aid. From a financial and geopolitical perspective, the escalating crisis poses a material risk to West Asian economies and global trade. The instability in Sudan directly threatens the security of the Red Sea, a vital maritime trade route. Furthermore, the crisis is prompting international responses, including sanctions from the US and EU, and places pressure on key West Asian powers like Saudi Arabia and the UAE, who have strategic interests in the region, to intensify diplomatic and humanitarian efforts to prevent wider instability that could impact regional markets and trigger significant refugee flows.