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Israel’s reoccupation of Gaza will bury the “Oslo Accords”

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On August 8, under the coercion of far-right forces such as Prime Minister Netanyahu, Israel made a major and historic decision that completely reverses the peace process between Palestine and Israel, announcing that it will fully reoccupy the Gaza Strip, completely eliminate the Palestinian Islamic Resistance Movement (Hamas), and establish a new civil government. The Israeli Prime Minister’s Office stated that the Israel Defense Forces will be prepared to take over Gaza City while providing humanitarian aid to civilians outside the war zone.

It is reported that the Israeli Security Cabinet approved by majority vote Netanyahu’s strongly advocated “final solution” for Gaza, passing the so-called “Five Principles to End the War,” which include disarming Hamas; returning all Israelis held captive, whether alive or dead; achieving the demilitarization of the Gaza Strip; maintaining Israel’s security control over the Gaza Strip; and establishing a civil government that belongs neither to Hamas nor to the Palestinian National Authority.

This move by Israel is enough to shock and deeply worry world public opinion. When Israel, after ending 20 years of institutionalized garrison in the Gaza Strip, once again imposes full military administration, it is tantamount to declaring the complete death of the “Oslo Accords,” that the Palestinian National Authority recognized by the international community is no longer a peace partner, that the Gaza Strip is no longer “owned and governed by Palestinians,” and that Israel will once again become the overlord of this land.

From a broader and longer-term perspective, this move will weaken Israel’s strategic mutual trust and reconciliation cooperation with its peace partner and the sole legitimate representative of the Palestinian people, the PLO, and may reset the reconciliation process between Israel and Arab countries based on the “Abraham Accords,” possibly further worsening Israel’s relations with the international community, and even creating new troubles for the United States, which fully supports Israel, increasing its heavier strategic liabilities.

Reoccupying the Gaza Strip and dominating its future governance is to put the historically turbulent train of the Palestinian-Israeli and Arab-Israeli peace process into reverse, pushing Israel to repeat the mistakes of history. It will neither help effectively resolve the Gaza war predicament it is deeply mired in, nor help achieve lasting peace and stability, especially the historical reconciliation with Palestine and Arab countries.

Since October 7, 2023, when Hamas carried out the “Al-Aqsa Flood” operation and crossed the border to attack Israel, only a year and a half has passed, yet the Palestinian-Israeli conflict has escalated into the “Sixth Middle East War,” with the flames of war extending to the Eastern Mediterranean, the Red Sea region, and the Persian Gulf. Israel appears to have achieved military victories over most of its opponents in the “Axis of Resistance,” even hardline adversary Iran, and unexpectedly reaped the “fruit” of the Syrian regime’s collapse. However, it has never managed to conquer the Gaza Strip, which is only 360 square kilometers, has not eliminated Hamas despite the leadership being reportedly “wiped out,” has not eradicated the remnants of Hamas engaged in “ruins guerrilla warfare,” and has not rescued nearly 50 hostages on the brink of death.

Netanyahu and his government, using near-genocidal “scorched-earth tactics” and “starvation tactics,” have created a contemporary, horrific humanitarian disaster that shocks the conscience, challenges the principles of international and humanitarian law and the bottom line of human civilization, humiliates the international community, especially the United Nations composed of 193 sovereign states and two observer states, triggers a global wave of condemnation and anti-Israel sentiment, and revives non-mainstream antisemitic thought in both Eastern and Western societies. In addition, major Western countries that originally adopted indulgent and appeasing policies toward Israel have successively changed their positions—Canada, France, the UK, and Australia are preparing to recognize the State of Palestine, with some countries taking various forms of sanctions and restrictions against Israel. Some developing countries have long since imposed harsher sanctions on Israel, including severing or downgrading diplomatic relations, cooperating with the International Criminal Court in issuing “war crimes” warrants for Netanyahu and other Israeli political and military leaders.

However, Netanyahu, regardless of Israel’s historic political and diplomatic failures, and ignoring opposition from intelligence chiefs, in order to please far-right forces and avoid the collapse of his ruling coalition, as well as to evade legal accountability likely to arise from corruption cases and national security crises, has recklessly led the full reoccupation of the Gaza Strip, expanding the scale and intensity of the war, and increasing Palestinian suffering.

Netanyahu’s latest risky Gaza strategy is actually the result of excessive personal self-interest and an extreme obsession to fight to the end, ignoring that the whole country has fallen into a long war and is fighting on multiple fronts, ignoring the daily casualties at the front line, ignoring the gradual exhaustion of manpower to the point of overturning decades-old national policy to forcibly conscript religious students, ignoring that the entire country’s main trajectory has shifted from peace and development to war and conquest, ignoring the continuous deterioration of the investment climate, the ongoing withdrawal of foreign capital and expatriates, and the constant hemorrhaging of economic development.

Netanyahu’s “scorched-earth tactics” have completely deprived the geographically small Gaza Strip of any security space. Not only are Palestinians losing their lives at the rate of hundreds per day, but the plight of Israeli hostages is also worsening. Especially when combined with the “starvation tactics,” it not only continuously causes a systemic crisis in the basic food and nutrition supply for Palestinians, but also objectively turns surviving Israeli hostages into burial companions.

After Hamas and other organizations recently released the latest hostage status video, the world was shocked, and Israel suffered another heavy blow: Evyatar David, trapped in a confined space, is skin and bones, estimated to have lost half his body weight. Evyatar was even forced to dig his own grave in the reinforced concrete tunnels under Hamas control. Although Hamas’s inhumane acts are certainly condemnable, they show that Netanyahu’s military pressure policy has completely failed—the clearing strategy that nearly flattened Gaza and dug three feet underground cannot completely eliminate Hamas.

It can be said that Hamas, by torturing and starving hostages in extreme retaliation for Israel’s “starvation tactics” and mocking Israel’s “scorched-earth tactics,” has severely provoked Israel’s political nerves and emotions across society. Evyatar’s family accuses Netanyahu’s Gaza policy of failure, and more Israeli citizens, former senior officials, and intelligence chiefs are urging an end to the war to secure the release of hostages. Perhaps the tragic scene of Evyatar being on the verge of starving to death will become a watershed moment in the Gaza war, placing the warlike Israeli right-wing ruling coalition on the fire, and forcing the cornered Netanyahu to take his final gamble—staking his political future, the destiny of Israel, and the Palestinian-Israeli and Arab-Israeli peace process.

In 1993, the Israeli Labor Party government, suffering from the multiple torments of the long-term occupation of Palestine, reached the “Oslo Accords” with the PLO regarding transitional autonomy. Then Prime Minister Rabin, who had once served as Defense Minister, had always sought to free Israel from the “Gaza nightmare,” because since seizing the Gaza Strip from Egypt in 1967, “peace under Israeli rule” had lasted only 20 years. In 1987, the spark of the “Intifada (uprising)” was ignited in the Gaza Strip, quickly sweeping into a prairie fire and spreading to the broader West Bank.

Rabin himself had also sworn to “break the bones of the Palestinians,” and more Israeli generals cursed Gaza as a “damned strip,” a “hateful hornet’s nest,” because the Israeli army occupied this area during the day, while at night control shifted to various resistance forces. The conflict over the occupied territories, with Gaza as its focus and symbol, plunged Israel into an unprecedented predicament under international law and a whirlpool of world public opinion, while also paying a heavy security and economic price. Today, Netanyahu has forgotten the lessons of history, willingly returning to the old path of the occupier that runs counter to the correct direction of human civilization and history, once again mortgaging Israel’s national image, national development, and international status to the occupation of the Gaza Strip.

On August 7, the Israeli right-wing mouthpiece The Jerusalem Post published an editorial warning Netanyahu to “heed the warning and avoid the Gaza quagmire,” pointing out that fully reoccupying it would worsen the humanitarian crisis in the Gaza Strip and give Hamas a propaganda victory, portraying Israel as an occupier and inspiring resistance.

The paper pointed out that historical experience and military analysis show Netanyahu may believe that occupying the Gaza Strip will bring the hostages home and crush Hamas, but this is wishful thinking. The paper quoted famous retired U.S. General David Petraeus, comparing the Gaza ground campaign to “Mogadishu on steroids,” which would lead to rapidly escalating casualties and chaos.

Petraeus, a renowned special warfare expert, U.S. Army general, former commander of the Multinational Force in Iraq, commander of U.S. Central Command, top commander of the International Security Assistance Force in Afghanistan, and director of the CIA, was later forced to resign due to an extramarital scandal. Petraeus is far more aware than Netanyahu, who is not from a military background, of the heavy costs and political consequences if the Gaza Strip becomes “Mogadishu-ized.”

In October 1993, U.S. peacekeeping forces stationed in Mogadishu fell into an urban warfare trap while trying to capture aides of warlord Aidid. The U.S. forces killed more than 1,000 fearless militiamen but suffered 19 dead, one captured, and two Black Hawk helicopters destroyed. When televised images reached the U.S. of the captured soldier begging Washington for rescue and Mogadishu mobs dragging the bodies of dead American soldiers through the streets, public opinion pressure skyrocketed, forcing the Clinton administration to announce withdrawal from Somalia four days later.

Today, Evyatar, emaciated and displayed in a Hamas video, is in a situation eerily similar to the U.S. military’s Mogadishu defeat back then. Petraeus’s reminder of this American heartbreak is actually a warning to Netanyahu and his government that if they insist on reoccupying Gaza and causing an even more severe disaster, it could trigger a reversal in America’s one-sided favoritism toward Israel.

The Jerusalem Post also pointed out that fully occupying the Gaza Strip would not ensure Israel’s security; rather, it would trap Israel in the Gaza Strip, in an expensive, endless war with no visible end, making all Israelis bear the consequences, whether reduced income or long-term military service. The paper cited data released by Bank of Israel showing that the war has already caused serious damage to Israel, with all war-related activities—including reserve mobilization, reduced labor force, and disruption of high-tech supply chains—costing more than $600 million per week, about 6% of GDP. By the end of 2025, the cumulative economic burden is expected to reach $5.3 billion to $6.7 billion, close to 10% of GDP.

In 1994, based on the “Oslo Accords,” both sides launched the peace process, starting with “Gaza-Jericho First Autonomy,” later expanding to all Palestinian-populated cities in the Gaza Strip and the West Bank. After the five-year transitional autonomy ended, the two sides failed to reach a compromise on a series of final status issues, the peace process reversed, Palestine launched the second violent resistance, the “Al-Aqsa Intifada,” and Palestinian-Israeli relations deteriorated rapidly, leading to the demise of the relatively moderate Israeli left-wing camp.

With the rise of Israeli right-wing leader Sharon and the Likud bloc to power, and the Bush administration’s “Axis of Evil” doctrine and anti-terrorism strategy after 9/11, the nature of the Palestinian-Israeli conflict was deliberately distorted and deconstructed by Israel and the U.S., demonizing the core relationship of “occupation and anti-occupation” into “terror and anti-terror.” Fatah, the long-term ruling party of Palestine advocating peace, suffered joint suppression by the U.S. and Israel, and its widely recognized political leader Arafat died under Israeli siege. The Palestinian political landscape was thus fundamentally reshaped, with the hardline positions of Hamas and others gradually winning mainstream public opinion.

In 2005, at the critical moment when pro-peace and pro-war forces within Palestine were subtly reversed, the Sharon government unilaterally announced withdrawal from the Gaza Strip, ultimately allowing Hamas to completely gain the upper hand and drive Fatah, which insisted on cooperating with Israel, out of the Gaza Strip, turning this small area into its exclusively controlled “Hamastan.”

In 2006, Hamas, by participating in the Palestinian Legislative Council elections, indirectly acknowledged and accepted the “Oslo Accords” and even the “two-state solution,” because whether the Palestinian transitional autonomy government or the legislative body, their establishment and operation were legally based on the “Oslo Accords.” This move was actually a key change in Hamas’s policy toward Israel, but because it did not amend the “Hamas Charter” in time—i.e., did not explicitly and publicly abandon the fundamental position of “eliminating Israel”—its governing legitimacy was not recognized by Israel and the U.S., instead leading to a harsher blockade of the Gaza Strip, creating the “world’s largest open-air prison.”

Since then, as Israeli right-wing forces became more aggressive, continually nibbling away at occupied West Bank territories and intensifying “Judaization” measures in East Jerusalem, it triggered two major Palestinian-Israeli conflicts from 2008 to 2014, i.e., what Israel defines as the “Israel-Hamas wars.” Over the past 20 years, the Netanyahu government has deliberately adopted a “strike but not destroy” approach toward Hamas, intentionally creating two Palestinian power centers, aggravating their geographic, social, political, and governance divisions, and maintaining the enormous and one-sided benefits Israel reaps from long-term occupation.

In 2017, when the U.S. Republican Party returned to power, Hamas seized the opportunity once again, issuing a declaration on May 1 that year accepting the existence of Israel, reaffirming the establishment of an independent Palestinian state with East Jerusalem as its capital and the Gaza Strip and West Bank as its territory, and expressing hope that the Trump administration would promote the resumption of Palestinian-Israeli peace talks. This was originally another rare window for the Palestinian issue, but it was jointly shut by the unprecedentedly pro-Israel Trump administration and the Israeli right-wing, greedy for immediate interests: the U.S. moved its embassy in Israel to Jerusalem, introduced the “Deal of the Century” that sacrificed Palestinian national interests, promoted the “Abraham Accords” that betrayed the Palestinian cause, and encouraged Israel’s far-right forces to further expand illegal settlements.

Hamas’s slow strategic shift and repeated gestures of goodwill abroad were met with humiliation, “warm faces pressed against the cold backsides” of the U.S. and Israel, while domestically facing doubts and challenges from radicals such as the Islamic Jihad Organization and Jihadist Salafists. Thereafter, Hamas returned to hardline and violent policies, becoming involved in multiple large-scale conflicts with Israel, while the “Abraham Accords,” which abandoned the Palestinian cause, created a new reconciliation trend for Israel, paving the way for normalization talks between Saudi Arabia, the new “leader” of the Arab world, and Israel.

Beset by internal and external troubles and despairing about the prospects for peace and reconciliation, at the latest low point and turning moment in the fate of the Palestinian people, on the eve of the fiftieth anniversary of the “Ramadan War” when Israel had suffered heavy losses, and at the last moment before Saudi Arabia, Israel, and the U.S. might cross the key threshold of sacrificing Palestinian interests, Hamas carefully planned and tightly executed the largest-ever single “suicidal” cross-border attack in world military history with 2,000 people at once, attempting through the predictable ruthless retaliation by Israel and the heavy Palestinian casualties to attract the world’s attention and sympathy, push the long-marginalized Palestinian issue back to the center of the world stage, and thereby cause rare mutual fatal injuries and cycles of violence between the two sides, triggering the “Sixth Middle East War,” surpassing all previous Middle East wars in scale and losses.

Strictly speaking, Israel’s unilateral withdrawal from the Gaza Strip in 2005 did not mean what Israel claimed as the “end of the occupation,” and naturally meant that Hamas retained the right to armed resistance granted by international law. Because the Gaza Strip is part of the occupied Palestinian territory, Hamas claims to represent the interests of all Palestinians and indeed has won the support and recognition of most Palestinians. Because Israel has not returned Gaza’s airspace and territorial waters, has not returned control of Gaza’s external crossings and residents’ freedom of movement, has not ended the collective punishment of Gaza’s 2.3 million people, and has not alleviated the historical suffering of the Palestinian people.

After the “Al-Aqsa Flood” ignited a new round of Palestinian-Israeli conflict, UN Secretary-General Guterres, a former Prime Minister of Portugal, stated: “Hamas’s attack on Israel did not happen without reason.” This statement is entirely from the standpoint of international law, and also represents the mainstream value judgment and main empathy of the international community. Over the past two years, the international attention received by Israel and Palestine has been completely reversed; politically and morally, the Palestinians have achieved victory and honor, and Hamas has realized its strategic vision, even though I personally firmly and consistently oppose resolving the Palestinian-Israeli conflict through violent means.

Therefore, Netanyahu’s scheme to fully reoccupy the Gaza Strip, or the plan to continue besieging the Gaza Strip that may be rejected, are not fundamental solutions to breaking the Gaza deadlock and achieving lasting security for Israel, but are two different strategies for maintaining the illegal occupation, different cost-performance schemes for internal calculations of gains and losses. Has Israel’s de facto occupation and blockade of the Gaza Strip over the past 20 years not ended in failure? Has it not led to the national disaster and national humiliation of the “Israeli 9/11”? Whether full reoccupation or continued blockade, the essence is to maintain the illegal occupation of the Gaza Strip and the entire Palestine, prolong the long suffering of the Palestinian people, and create endless national hatred, family feuds, and cycles of violence—it is the typical act of drinking poison to quench thirst, ladling water onto boiling soup, or extinguishing a fire with fuel. In the end, it is still a dead end.

Lives are of paramount importance, whether Israeli hostages or Palestinian civilians. The most feasible emergency choice is for Israel to immediately and unconditionally cease fire, fully open humanitarian aid to Palestine, in exchange for the early release of Israeli hostages, and then to study and review whether Israel’s war goals of “de-Hamasization, de-militarization, and de-violence” are reasonable and realistic, and whether they can once and for all end Israel’s security predicament and the historical tragedy of the Palestinian people.

Continuing to put faith in iron and blood and the big stick will lead Israel away from the original intentions and vows of independence and statehood, further from the political legacy of compensation for the Jews’ suffering in the Holocaust, and closer to the racism, militarism, and fascism that once persecuted the Jews. The latest cover article of The Economist points out that “a state that ignores the laws of war and feels no shame for illegal acts, without correcting them, not only harms the victims but also harms itself. Israel has a survival interest in achieving justice. Conversely, if it glorifies those who planned famine and ethnic cleansing in Gaza, its politics and society will tilt toward demagoguery and authoritarianism. The young, idealistic state born in May 1948 will cease to exist.”

In any case, the actions of the non-state actor Hamas in killing more than 1,000 Israelis cannot be the reason for the state actor Israel to cause the deaths of more than 60,000 Palestinians. Perhaps Israel’s reoccupation of the Gaza Strip is as irreversible as Caesar’s crossing of the Rubicon in 49 BC, but it must never be allowed to repeat the unrestrained annexation of Austria by the Third Reich in 1938.

Prof. Ma is the Dean of the Institute of Mediterranean Studies (ISMR) at Zhejiang International Studies University in Hangzhou. He specializes in international politics, particularly Islam and Middle Eastern affairs. He previously worked as a senior Xinhua correspondent in Kuwait, Palestine, and Iraq.

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Macroeconomic consequences of asymmetric UAV attacks in Russia

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Today, the nature of asymmetric threats is undergoing a profound transformation, with their focus shifting increasingly toward economic centers. By mid-2026, the nature of asymmetric warfare within the borders of the Russian Federation entered a qualitatively new and critical phase.

An analysis of the Ukrainian unmanned aerial vehicle (UAV) strikes carried out in July 2026 reveals a deliberate shift in targeting. Moving beyond military installations and fuel-energy infrastructure, these attacks directly targeted civilian logistics networks and critical nodes of the macroeconomic infrastructure.

The primary objective of this strategic shift is to deplete the country’s internal resources, induce insurmountable disruptions in supply chains, and exert intense psychological pressure on the civilian population.

Large-scale, coordinated strikes on the distribution centers of Wildberries—Russia’s largest e-commerce platform and part of the RVB joint venture (formed by the 2024 merger of Wildberries and Russ)—became the symbol of this new phase of home-front vulnerability. The geographic scope of these attacks, spanning an unprecedented area from the Northwestern Federal District to Southern Russia and Crimea, exposed critical gaps in national industrial risk insurance mechanisms. Furthermore, this situation sparked severe legal disputes between platform economy giants and small businesses, compelling immediate intervention from both corporate executives and senior state officials.

Tracing the multi-layered consequences of the kinetic impacts resulting from these July attacks on the state’s digital and physical economy will shape the new architecture of civilian sector security.

The zenith of the logistical terror waged by Ukraine was recorded on the night of July 24, 2026, marking the most technically complex UAV attack inflicted on Russian Federation territory since the beginning of the year. According to data from the Ministry of Defense of the Russian Federation, domestic air defense systems detected and destroyed 571 fixed-wing Ukrainian UAVs that night.

Two points have become exceptionally critical here: saturating radar fields and the military “swarm” effect. In short, this event is the clearest indication that the enemy has transitioned to a tactic of overwhelming radar systems. At the same time, the “swarm” effect generated across a vast geographic expanse aims to rapidly deplete the ammunition of anti-aircraft missile systems and expose air defense positions deep behind the front lines.

The breadth of the targeted geography attests to the unprecedented scale of the operation. UAVs were neutralized over the Belgorod, Bryansk, Kaluga, Kursk, Leningrad, Novgorod, Oryol, Pskov, Ryazan, Smolensk, Tver, Tula, and Vladimir regions, as well as over Moscow, Krasnodar, the Republic of Crimea, and the waters of the Azov and Black Seas.

Such a dense dispersion of targets across a vast territory points to an attempt to paralyze transportation and logistics arteries within Russia’s European landmass.

In parallel with the mass deployment of UAVs, missile strikes were also conducted against civilian industrial enterprises. During the same period, a missile attack on a local enterprise in the Fileyka district of Kirov resulted in outright catastrophe, leaving 6 people dead and 32 employees injured with varying degrees of severity.

Following the incident, Regional Governor Aleksandr Sokolov stated that the situation required not only the evacuation of the wounded, but also large-scale interventions such as restoring water and power supplies and auditing the security of neighboring settlements. This combined approach—employing inexpensive kamikaze drones to degrade air defenses followed immediately by missile strikes on unprotected industrial zones—presents an entirely new threat paradigm for the civilian economy.

Systematic and sequential attacks directed at the facilities of a single commercial entity completely eliminate the possibility of coincidence. The strategic, macroeconomic, and psychological factors turning civilian commercial warehouses into critical vulnerabilities for an entire state rest upon four pillars:

  1. Role as the central circulatory system of domestic trade: Wildberries plays a critical role in the architecture of the modern Russian economy, connecting millions of consumers with tens of thousands of SMEs. Damage to distribution centers severe supply chains, triggering localized shortages of essential consumer goods and regional inflationary spikes. The primary goal is to destabilize the domestic market and create an artificial supply vacuum.
  2. Immense facility footprints and defense complexity: Spanning hundreds of thousands of square meters across the nation, these hangars constitute massive targets with high radar contrast. Unlike military bases, these commercial warehouses cannot possess their own air defense systems; placing every such facility under an air defense umbrella is physically impossible without compromising frontline systems.
  3. Social and psychological impact: In the eyes of the public, logistics centers symbolize daily economic stability. Black plumes of smoke visible from miles away, massive fires, and civilian casualties represent a hybrid terror tactic designed to transport an atmosphere of fear deep into peaceful cities and shake the internal socio-political climate.
  4. Magnified radius of economic impact: Inventory consumed by flames in these warehouses generally consists of stock purchased by merchants on credit. The destruction of commodity inventories holds the potential to cause mass vendor bankruptcies, bank loan defaults, and cascading layoffs across small businesses.

The events of July 2026 mark an irreversible shift in the threat landscape facing Russian commerce and macroeconomics. Attacks directed at Wildberries hubs in regions such as St. Petersburg, Moscow, and Tambov exposed the utter vulnerability of civilian logistics infrastructure.

Deploying relatively inexpensive unmanned aerial vehicles, the enemy is capable of inflicting tens of billions of rubles in direct damage, paralyzing the supply of essential goods, and triggering an acute social crisis in which hundreds of thousands of entrepreneurs face the threat of bankruptcy. According to Russian experts, the total cost of a single fire—similar to the Kotovsk incident on July 18—can range between 50 and 100 billion Rubles ($630 million – $1.2 billion USD).

Despite its massive capital reserves, corporate business was caught unprepared for military threats. The medium-term survival of the e-commerce economy depends on the state and the private sector uniting to engineer unprecedented systemic solutions. Establishing compensation funds and introducing mandatory risk-distribution mechanisms are critical steps that must be taken.

Logistics hubs will remain open targets unless a “state program for subsidized reinsurance of military risks” is established for the critical nodes of the civilian economy. In the future, it will not suffice for large enterprises merely to pour capital into the physical protection of infrastructure; they must also deeply decentralize their logistics networks to prevent the concentration of goods and capital at single points of failure.

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Egypt Under Fire: What Does the Damietta Strike Mean for Global Energy Markets?

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Dr. Ahmed Moustafa, Director & Founder, Asia Center for Studies & Translation, Egypt

For the first time since successive waves of escalation between Washington and Tehran began in recent months, an Egyptian liquefied natural gas (LNG) export facility has become a direct target.

In the early hours of Wednesday, 29 July 2026, at least one drone struck the floating storage unit Energos Winter, owned and operated by a U.S. company and sailing under the Marshall Islands flag, while it was moored at the Mediterranean port of Damietta. The impact ignited a fire that spread to a neighboring LNG carrier, GasLog Salem. Egyptian authorities confirmed that the blaze was brought under control without any reported casualties, while no group had claimed responsibility for the attack at the time of writing.

A Broader Context That Cannot Be Ignored

The incident did not occur in a vacuum. It came only hours after the United States Central Command (CENTCOM) announced that it had conducted joint strikes with Saudi forces targeting armed factions in Iraq accused of launching drone attacks against Saudi oil facilities. Tehran responded by warning against a “miscalculation,” at a time when the Middle East is still grappling with the repercussions of an earlier round of escalation that erupted on 8 July, when U.S. forces carried out strikes inside Iranian territory following an attack on a commercial vessel in the Strait of Hormuz. Iran retaliated with attacks targeting U.S. military bases in Bahrain, Jordan, Qatar, Kuwait, the United Arab Emirates, and the Sultanate of Oman.

Against this tense backdrop, Damietta appears to represent yet another link in the chain of regional escalation—but an exceptional one. For decades, Egypt has sought to keep itself removed from direct military polarization in the region, unlike several Gulf states that have increasingly become arenas of open confrontation.

At the same time, this interpretation does not entirely rule out the possibility of an indirect Israeli role, driven by hostility toward Egypt’s growing diplomatic influence in the Palestinian and Gaza files. Cairo has remained committed to advancing the two-state solution and to implementing the second and third phases of the peace roadmap agreed upon following the Sharm El-Sheikh Peace Summit last October. The Israeli government, led by Benjamin Netanyahu, has sought to obstruct these efforts. Netanyahu, who is the subject of arrest warrants issued by the International Criminal Court, is widely accused of bearing responsibility for committing genocide that, according to Palestinian authorities, have resulted in the deaths of approximately 73,000 Palestinian civilians since 7 October 2023.

Why Egypt?

Over the past two years, Egypt has steadily strengthened its position as a regional hub for liquefying and re-exporting natural gas. This growing role has been supported by its two LNG plants at Idku and Damietta, in addition to a network of pipelines linking the country with Israel and Cyprus.

This infrastructure—unmatched elsewhere in the Eastern Mediterranean in terms of combined liquefaction capacity and direct access to European and global markets—has transformed Damietta and Idku into critical gateways for Eastern Mediterranean gas, including increasing volumes of Israeli/Stolen Palestinian natural gas liquefied and re-exported through Egyptian facilities.

According to local reports, the Energos Winter alone was supplying approximately 450 million cubic feet of gas per day to Egypt’s national grid and was preparing to receive four additional cargoes during August.

This expanding role gives any attack on Egypt’s gas infrastructure significance far beyond the immediate incident itself. It threatens not only Egypt’s domestic energy supplies but also a supply chain upon which Europe has increasingly relied as part of its strategy to diversify away from Russian natural gas.

Who Was Behind the Attack? Open Scenarios

At the time of writing, no organization had officially claimed responsibility, leaving several possible interpretations.

The first scenario cautions against prematurely attributing responsibility to Iran or its regional allies. It argues that the ambiguity surrounding the incident—and the absence of any claim of responsibility—may itself be deliberate, allowing whichever actor carried out the attack to undermine Egyptian stability without incurring immediate political costs.

This possibility includes actors competing over Eastern Mediterranean energy routes, as well as local or transnational groups pursuing agendas unrelated to the U.S.-Iran confrontation. Egyptian officials themselves have adopted a notably cautious approach. Egypt’s Minister of Information warned against “rushing to accuse any party,” while a former official suggested that “certain actors are seeking to drag Egypt into the conflict,” implying that the attack may have been designed precisely to draw Cairo into a confrontation it has consistently sought to avoid.

A second scenario, Israeli Involvement or the Involvement of Israel’s Allies

This, in itself, remains a serious hypothesis that is reportedly being discussed in undisclosed investigative circles. The prevailing analyses, supported by pro-Israeli and pro-American narratives, have largely centered on suspicions directed at Iran or Iran-aligned actors within the context of the ongoing conflict, rather than at Tel Aviv. This is partly because Israel maintains an energy partnership with Egypt, making any attack on an Egyptian export terminal potentially detrimental to its own natural gas interests.

Nevertheless, this hypothesis—like all others—must ultimately be assessed in light of the findings of the official investigations, which are still underway. It is worth recalling, however, that repeated warnings have been voiced regarding the visits of Israeli Prime Minister Benjamin Netanyahu to Washington, as such visits have often been followed by heightened regional instability, as was argued after developments last December. According to this line of analysis, Netanyahu seeks to prolong the conflict with Iran in order to strengthen his domestic political position, secure his continuation in office, and advance Israel’s long-term strategic objective of neutralizing Iran and carrying out “Greater Israel.”

Within this framework, some analysts argue that there are broader efforts to weaken both Egypt and Türkey. They cite remarks attributed to a former Mossad operative during appearances on Israeli television, alleging that such a strategy would also serve to divert international attention away from the Gaza file and the question of Palestinian statehood—an issue on which Egypt has intensified its diplomatic efforts in recent days. According to this interpretation, creating indirect pressure on Egypt—the region’s most stable and secure state—could be viewed as a means of drawing Cairo into a wider regional confrontation.

A third scenario links the incident directly to the broader U.S.-Iran escalation. According to the article, The New York Times, citing two Iranian sources, reported that the attack may have been intended as a signal that global shipping and energy supplies could face deeper disruptions should Tehran or its allies choose to escalate further. The sources, however, did not identify the perpetrators or specify the launch point of the drone.

The Messages Behind the Attack

Regardless of who carried out the operation, the choice of target sends several important signals. An attack on what the article describes as the first American-owned energy asset on Egyptian soil would convey a message to Washington that not only its military installations in the Gulf, but also its economic footprint across the region, has become increasingly vulnerable.

For Egypt, which has consistently pursued a policy of strategic restraint and regional neutrality, the incident serves as a reminder that its geographic position—adjacent to some of the world’s most important energy and maritime corridors—no longer guarantees insulation from the conflicts unfolding around it.

For global markets, the attack suggests that the geographic scope of potential disruption is expanding beyond the Strait of Hormuz and the Arabian Gulf into the Eastern Mediterranean, increasing insurance premiums for shipping and critical energy infrastructure in a region long regarded as comparatively secure.

Egypt’s Official Response

The Egyptian government handled the incident with considerable caution and procedural professionalism, treating it primarily as a crisis-management operation rather than a political event.

The Cabinet confirmed that the fire had been caused by a drone attack without attributing responsibility to any specific party, emphasizing that investigations were continuing “to take all necessary measures to safeguard Egypt’s interests and national security.”

Prime Minister Mostafa Madbouly described the response as a test of the state’s crisis-management capabilities, praising emergency teams for successfully moving the burning vessels away from the port, thereby preventing what could have become a far larger disaster.

President Abdel Fattah El-Sisi addressed the incident publicly for the first time during a telephone conversation with Spanish Prime Minister Pedro Sánchez. During the call, he confirmed that the competent authorities were conducting a comprehensive investigation, warned of the dangers posed by the escalating regional situation, and stressed the importance of cooperation between Egypt and the international community to contain the crisis while adhering to peaceful solutions.

This measured diplomatic approach—avoiding direct accusations while emphasizing de-escalation—reflects Cairo’s determination not to be drawn into a broader regional confrontation despite having come under direct attack on its own territory.

Several Gulf states also expressed their full solidarity with Egypt and voiced support for its efforts to safeguard its national security and sovereignty.

The Impact on Global Energy Markets

The Damietta incident occurred at a time when global energy markets were already under considerable strain. Brent crude had been hovering around US$90 per barrel following the escalation of 8 July, while the European Title Transfer Facility (TTF) benchmark for natural gas had climbed above US$700 per 1,000 cubic meters for the first time since March.

Any additional disruption affecting an Egyptian LNG export terminal risks reinforcing this upward trend. Europe has increasingly relied on Egyptian liquefied natural gas as part of its broader strategy to diversify supplies away from Russian pipeline gas. Consequently, even a temporary interruption to Egypt’s export infrastructure could heighten market concerns over supply security.

The incident also adds to the geopolitical risk premium already factored into insurance costs for vessels operating in the Eastern Mediterranean. Higher perceived risks could translate into increased shipping and insurance costs for LNG carriers throughout the region, even if subsequent investigations conclude that the attack was an isolated event unlikely to be repeated.

What Should Be Done to Prevent Similar Incidents?

First, Egypt should further strengthen its short-range air defense capabilities and counter-drone systems around strategic energy installations along its Mediterranean coastline. This includes deploying advanced early-warning radar networks and cost-effective interception systems capable of neutralizing small unmanned aerial vehicles before they reach critical infrastructure.

Second, broader regional intelligence-sharing mechanisms should be expanded among Egypt and neighboring states—including Cyprus, Greece, and Türkiye—in recognition of the increasingly interconnected nature of Eastern Mediterranean gas infrastructure and the shared strategic importance of safeguarding regional energy corridors.

Third, given that the targeted floating storage unit is owned by a U.S. company, Washington should contribute to financing and modernizing the protection of such critical infrastructure rather than limiting its response to statements indicating that it is merely “monitoring the situation,” as the article characterizes the U.S. reaction.

Finally—and perhaps most importantly—reducing the broader cycle of regional escalation between Washington and Tehran remains the only sustainable guarantee against similar incidents in the future. Any purely technical or localized security measures can mitigate immediate risks but cannot eliminate them so long as the underlying geopolitical drivers of confrontation remain unresolved.

Conclusion

The Damietta incident serves as a stark reminder that geographic neutrality alone is no longer sufficient to shield a country that has become a pivotal node in the global energy network.

References:

1- https://www.bbc.com/news/articles/c39ez3klwmro

2- https://www.reuters.com/world/middle-east/egypt-confirms-drone-caused-fire-two-gas-vessels-damietta-2026-07-30/

3- https://www.reuters.com/world/middle-east/drone-hits-gas-storage-tanker-egypts-mediterranean-port-2026-07-29/

4- https://www.nytimes.com/2026/07/29/world/middleeast/ships-drone-strike-egypt.html

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Rising populist parties in Europe and liberalism

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Leon Trotsky, one of the foremost leaders of the October Revolution, defined fascism as the totalitarian organization of society by monopoly capital. Magnates of large-scale monopoly capital are acutely aware that their profits cannot be safeguarded in the absence of authoritarian political power. Thus, fascism finds its bedrock of support among capitalist forces, the grand bourgeoisie, monopoly capital circles, and major landowners. We are all too familiar with the calamities fascism wrought upon the world in the era preceding the Second World War.

The post–World War II era is often commemorated as the golden age of capitalism—a period characterized by robust growth rates and low unemployment. Real wages climbed, social rights expanded, demands for a welfare state remained vibrant, and the pursuit of a social state yielded tangible results. This era ultimately met its demise in the 1970s, undone by shifts in the regime of accumulation and structural economic crises.

Today, across Europe, political parties that could virtually be characterized as the direct successors to pre-WWII fascist movements are consolidating their electoral gains. Germany, France, and Italy serve as quintessential examples. These parties weaponize poverty, unemployment, and anti-foreigner, anti-immigrant, anti-Muslim, and anti-Middle Eastern sentiments, while capitalizing on the incompetence of traditional center-right and center-left parties and taking a deeply Eurosceptic, critical stance toward the European Union. They employ caustic rhetoric against the political elites who have dominated governance for decades. Receiving endorsement from both US President Trump and Russian leader Putin, they draw substantial support simultaneously from working-class constituencies—traditionally the bedrock of the left—and from grand capital circles. While monopoly capital quietly pats these populist movements on the back, it simultaneously winks at liberal-democratic and increasingly indistinguishable social-democratic parties that champion unbridled capitalism and aggressive liberalism. Beyond France and Germany, examples abound from Italy to the United Kingdom…

The interests of grand capital, which back populist regimes and advocate authoritarian governance, also champion localization. For the erosion of the national, the public, and the collective—alongside the attenuation of the central state and the elevation of the local—works decisively to the advantage of big capital.

Why?

Because of this:

Under liberalism, the state does not regulate the market; rather, the market regulates, directs, and subdues both the state and society. In a liberal order, the state is expected to act on behalf of capital and in favor of the market—intervening in politics, society, and the law, and enacting statutory frameworks strictly to this end. The state is tasked with engineering legal and institutional arrangements for the market’s account and benefit. Society is reduced to a market-society, wherein the citizen is reimagined as a consumer, a client, and an entrepreneur. Since competition is elevated as the supreme imperative, citizens themselves must become entrepreneurial and competitive—a posture the state actively promotes and incentivizes.

According to liberals, the state bears no obligation to shield its citizens from the pitiless mechanics of the market or the ferocity of unchecked capitalism. On the contrary, the state demands and encourages that citizens establish themselves as entrepreneurial actors within the market arena. Consequently, the state aligns itself with capital, operating at its beck and call. Hence, liberalism harbors an innate preference for unorganized, non-unionized, cheap labor. Wages are suppressed; agricultural subsidies are gutted to a minimum; and strikes are banned on the flimsiest of pretexts.

Because liberalism insists that the state be sculpted, organized, and driven according to market demands—allowing the market to command and direct the state—the liberal vision of the nexus between politics and economics, as well as politics and law, is deeply fractured. In their worldview, law must operate exclusively to the advantage of capital, acting as the vigilant sentinel for the inviolability of property rights. It must dismantle every obstacle standing in the way of free trade, unbridled competition, and the free market, while swiftly and severely penalizing any force that dares to impede them. To conform to the expectations and demands of capital: this is the primary imperative required of the law.

In sum, through its championing of identity politics, its reduction of the citizen to a mere client, and its liquidation of the state’s social character in order to place public power at the disposal of capital, liberalism stands fundamentally opposed to the social, the public, and the national. This is a truth that must be firmly impressed upon left-liberals, nationalist-liberals, and conservative-liberals alike.

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