Opinion
How did 2025 unfold for Venezuela and Latin America?
For Latin America and the Caribbean, as well as for other regions of the world, the year 2025 meant being under the constant and intensified scrutiny of the United States government. However, even though the White House’s trade war, characterized by arbitrary tariffs, primarily targeted countries with which the United States had a trade deficit (China, Canada, Germany, Japan, Ireland), Latin America has been the main focus of the deployment of the “New Monroe Doctrine.” And, within this region, Venezuela has been the country that, on the one hand, has suffered the most from it, and on the other hand, has confronted it with the greatest resistance, determination, and courage.
If 2024 ended with the certainty that Donald Trump’s third presidency would represent a scenario of direct confrontation with Venezuela, 2025 culminates with the realization that a good portion of the predictions regarding the aggressions that the Republican administration in the White House would apply against the Caribbean country materialized. But not even the most audacious could have imagined that Trump would invent a nonexistent armed conflict with Venezuela to advance his attempt to subdue the government of Nicolás Maduro and seize Venezuelan oil. It is worth clarifying that we say it is a nonexistent conflict because Venezuela does not threaten US territory or the political stability of the US government. This idea, widely disseminated and largely consolidated, is only one part of the narrative that has been constructed since President Hugo Chávez arrived at Miraflores Palace in 1999.
Despite the extraordinary nature of the US aggression against Venezuela, as we know, it is not the only Latin American country that, in 2025, has suffered the “Trump Corollary” to US imperialism and the rise of the extreme right. Let us, then, review how the rest of the region has been affected in political, economic, social, environmental, cultural, and military terms.
Brazil: For the first time since its creation in 1992, the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP) was held in the Amazon region, one of the planet’s most important lungs. The 30th COP took place in Belém do Pará, where funding to address the effects of the climate crisis was tripled, but a concrete roadmap for phasing out fossil fuels was not agreed upon. This lack of commitment to reducing greenhouse gas emissions, despite reaffirming the Paris Agreement and seeing progress in the new Nationally Determined Contributions (NDCs), drew criticism. COP 31 will be held in Antalya, Turkey, which will share the presidency with Australia.
On the political and judicial front, 2025 was the year that saw the conviction and imprisonment of former far-right conservative president Jair Bolsonaro for his role in the attempted coup d’état of January 8, 2023, in Brasília. This unprecedented event in Brazilian political history, which targeted Congress, the Presidential Palace, and the Supreme Court, tested democracy and the functioning of the separation of powers in the South American giant. Bolsonaro was sentenced to 27 years and three months by the Supreme Federal Court (STF), Brazil’s highest court, becoming the first former president found guilty of leading a coup. Trump unsuccessfully attempted to support Bolsonaro by imposing sanctions and tariffs on some key Brazilian exports (coffee, meat, fruit, etc.). However, a few months later, due to the price increases of these products in the US domestic market, the US president was forced to remove those tariffs.
México: The first female president in the history of this country, Claudia Sheinbaum, demonstrated her political leadership with very positive results in 2025. As one of the United States’ main trading partners, when Trump took office on January 10th of this year, Mexico topped the list of supposed enemies of U.S. economic, social, territorial, and national security stability. Trump accused Mexico of “not doing enough in the fight against drug trafficking,” thus justifying a 30% tariff on all Mexican exports. He also designated six Mexican cartels as terrorist organizations, including the Sinaloa Cartel and the Jalisco New Generation Cartel. Sheinbaum responded with concrete actions: dozens of suspected drug traffickers were extradited to the United States. Furthermore, the Mexican president explained to her North American counterpart and neighbor why the tariffs would harm the US economy, and, as happened with other countries, Trump had to back down.
In the middle of the year, Mexico implemented a historic reform by holding its first-ever elections to choose judges and magistrates through popular vote. This judicial election, which renewed more than 2,600 positions nationwide, was made possible by the constitutional reform approved in 2014 during the administration of López Obrador (AMLO). The 2015 judicial reform established that all judges must be elected by popular vote; it also reduced the number of Supreme Court justices from 11 to 9; and replaced the Federal Judiciary Council with the Judicial Administration Body and the Judicial Disciplinary Tribunal. The objective of this initiative is to combat corruption and nepotism, increase transparency, and bring the judiciary closer to the Mexican people.
Sheinbaum faced a variety of challenges, among them, one of the most internationally impactful was the protests by the so-called “Generation Z” (people under 30), which gained momentum after the assassination of a mayor in the state of Michoacán. These protesters used the so-called “War on Drugs” to attack the government and the MORENA party. However, the Mexican president has been clear in stating that the war on drugs, besides being illegal, has not solved the problem but has worsened it, and that extrajudicial killings are not an option in her administration. In this sense, Sheinbaum continues the path of the Fourth Transformation, initiated by AMLO, with which she is building her own political hegemony.
In 2025, Mexico and Brazil were the main drivers of poverty reduction in Latin America. The Economic Commission for Latin America and the Caribbean’s (ECLAC 2025) annual report revealed that thanks to increases in the minimum wage, government transfers to social welfare programs, and the economic recovery of these two countries, which together represent more than half of Latin America’s total population, poverty in the region decreased for the first time since ECLAC began conducting these studies. Mexico contributed 60% and 49% to the overall reduction in poverty and extreme poverty, respectively. Brazil also contributed significantly, accounting for 30% of the reduction in overall poverty and 31% of the reduction in extreme poverty.
Argentina: The second year of Javier Milei’s administration was marked primarily by a corruption scandal within his government. This included, on the one hand, the “$Libra” cryptocurrency scam, promoted by Milei through his X account, for which he faces a fraud investigation in the United States; and on the other hand, the bribes his sister, Karina Milei, solicited from public institutions amidst drastic cuts in public spending. By 2025, the most vulnerable sectors of Argentine society had suffered the consequences of the Milei model, fueled by low inflation due to weak demand, which in turn led to decreased production, business closures, and layoffs. These workers now lack access to social programs and policies to support them.
The progressive political field saw Cristina Fernández convicted of corruption and politically disqualified for six years. Fernández, who is under house arrest and remains key in building an alternative to Milei’s government, has lost political power. In this context, the governor of Buenos Aires, Alex Kicillof, Cristina Fernández’s former economy minister, consolidated his national profile with an eye toward the 2027 presidential elections after winning the legislative elections in the most important province in electoral terms, where he secured a 14% lead over Milei.
Milei, for his part, received full political and partial economic support from the Trump Administration, which allowed him to win the national legislative elections despite the governmental crisis facing his administration.
Presidential elections in 2025: Bolivia, Chile, Ecuador and Honduras
Ecuador: In the most violent year in Ecuador’s history, right-wing politician Daniel Noboa was re-elected president with 55% of the vote in a runoff election held in April, amid serious allegations of electoral fraud. However, in November, the majority of Ecuadorians rejected the president’s agenda in the Constitutional Referendum and Popular Consultation. The Ecuadorian president sought popular support to convene a Constituent Assembly; to establish foreign military bases in Ecuador; to eliminate state funding for political parties; and to reduce the number of legislators in the National Assembly. These proposals were rejected with 61.58% of the vote.
While Uruguay, under the leadership of Yamandú Orsi of the Frente Amplio, witnessed the return of the left to power, the opposite occurred in one of the Andean nation. Bolivia held presidential (and parliamentary) elections this year, marking the end of a political era that began in 2006 with the election of its first indigenous president, Evo Morales, now a political target and adversary of his former supporters. Evo remains entrenched and seemingly untouchable in the Chapare, a coca-growing region in the department of Cochabamba. On October 20, in the second round, Rodrigo Paz was declared the winner with 54% of the vote. On November 8, upon assuming the presidency, Paz, whose main slogans have been “Capitalism for all” and “Bolivia to the world and the world to Bolivia,” quickly moved to eliminate fuel subsidies and seek to restore foreign relations with the United States and Israel.
On December 24, the National Electoral Council (CNE) of Honduras declared Nasry Asfura the new Honduran president. The decision came almost a month after the elections and with more than 300 of the nearly 2,800 electoral tally sheets showing inconsistencies, in an electoral process rife with fraud allegations from various parties (both left and right) that participated in the contest. Asfura, a conservative and right-wing politician from the National Party, was the candidate supported by Donald Trump, who, upon seeing the delay in releasing the results, did not hesitate to say, “It seems that Honduras is trying to alter the results; if they do, there will be a scandal.”
Chile also closed out 2025 with the return of the right wing. José Antonio Kast won, with 58% of the vote to 42%, in the second round against the Communist Party candidate, Jeannette Jara. Kast, whose father was a member of the Nazi Party in Germany and who has supported the Pinochet dictatorship, will take office in March 2026. Kast’s arrival will implement an emergency administration, representing the biggest shift to the right since the return of democracy in Chile in 1990.
Venezuela: The country most besieged by the US in 2025
Even during his presidential campaign, Venezuela was among the top priorities on Trump’s foreign policy agenda. Therefore, upon assuming his third presidency on January 15, 2015, the US president launched a full-scale attack against the Venezuelan government. Trump has tried everything to undermine the democratic order in Venezuela and install a president subservient to the White House, in order to seize Venezuelan oil.
Openly calling for global mercenaries, the United States government increased the reward for the capture (read: assassination) of President Nicolás Maduro, Interior Minister Diosdado Cabello, and Defense Minister Vladimir Padrino López. Meanwhile, Caracas received President Trump’s Special Envoy, Richard Grenell. These seemingly contradictory moves demonstrate the negotiator’s interest in first threatening to test the limits of what he can do. But negotiating with Venezuela is not a zero-sum game.
In another attempt to strangle the Venezuelan economy, Trump announced the termination of Chevron’s license to import Venezuelan oil and its derivatives. At the time, Chevron was the only U.S. oil company authorized to operate in Venezuela, despite the more than 1,000 unilateral coercive measures (sanctions) arbitrarily imposed on Venezuela. The U.S. oil company will continue operating in Venezuela until the end of 2025.
To dispel any remaining doubts that Trump has absolutely no interest in Venezuelan democracy or citizenship, the White House occupant invoked the Alien Enemies Act of 1798, which grants the president the authority to identify and expel undocumented immigrants (although Trump has used this law to persecute and deport even immigrants with legal or pending residency). The Venezuelans were labeled as members of the “Tren de Aragua” gang and taken by the hundreds to a high-security prison in El Salvador: CECOT.
Furthermore, in an unprecedented act of war that put Latin America and the world on high alert, Trump deployed warships to the Caribbean, off the coast of Venezuela. To do so, he first had to designate the “Cartel of the Suns” as a terrorist organization, a designation that provided the White House with the legal framework to launch targeted military operations without congressional approval. Violating international law, Trump extrajudicially executed dozens of people by carrying out kinetic attacks in Caribbean waters near Colombia, Venezuela, and Trinidad and Tobago.
Finally, to further escalate tensions, in early December, Trump ordered a total and complete blockade of all oil tankers, sanctioned or not, entering or leaving Venezuela. The US president proudly declared: “Venezuela is completely surrounded by the largest armada ever assembled in the history of South America. It will only get bigger, and the impact on them will be unprecedented, until they return to the United States of America all the oil, land, and other assets they previously stole from us.”
A few days later, the United States seized two oil tankers flying different flags, allegedly belonging to Iran and China, loaded with Venezuelan crude. In an act of piracy according to the United Nations Convention on the Law of the Sea, the US president ordered the arrest of the crews of these vessels, as well as the seizure of the ships and their cargoes. Currently, the US Coast Guard continues to monitor oil tankers it believes may be carrying Venezuelan oil, and a third seizure -characterized by the Venezuelan government as theft- of a third oil tanker, this time flying the Panamanian flag, has reportedly occurred.
This entire situation has logically resulted in an increase in military spending in the Latin American and Caribbean region, which, faced with the real threat of armed conflict, is preparing to defend its borders. Although official figures will be released in 2026, Brazil and Mexico are expected to top the list, but Colombia, Panama, Trinidad and Tobago, Guyana, Ecuador, Peru, the Dominican Republic, and even Argentina, somewhat further from the Caribbean, have also invested in defense.
Final thoughts
As a conclusion to this exhaustive analysis of the regional panorama in 2025, we can determine that Latin America and the Caribbean are at a historical crossroads where the anachronistic pretensions of a declining power collide with the reality of a new multipolar world order.
With his actions in Latin America, and despite his rhetoric as a “great negotiator,” 2025 confirms Trump as a decidedly warmongering, not pacifist, president. In fact, his administration has failed to pacify any international conflict; on the contrary, it has fabricated threats and escalated tensions through naval blockades, acts of piracy that border on international illegality, and the irrational imposition of tariffs on key trading partners.
Speaking of warmongers, paradoxically and symbolically, the Norwegian Nobel Committee decided to award the Nobel Peace Prize to María Corina Machado, the far-right leader who has called for military intervention and increased sanctions against Venezuela. This is further evidence that the Venezuelan right wing is to the right of Trump’s political views.
The 2025 assessment makes it clear that the Trump administration attempted to resurrect the old Monroe Doctrine under a veneer of economic and military aggression. However, concrete results have demonstrated that this doctrine has no place in the 21st century. Washington’s attempt to treat the region as its “backyard” clashes head-on with this reality: Venezuela, far from being isolated, has enjoyed the strategic, economic, and diplomatic support of powers like Russia and China, whose presence in the region acts as a necessary counterweight, neutralizing US ambitions for hegemonic control.
With his actions in Latin America, and despite his rhetoric as a “great negotiator,” 2025 confirms Trump as a decidedly warmongering, not pacifist, president. In fact, his administration has failed to pacify any international conflict; on the contrary, it has fabricated threats and escalated tensions through naval blockades, acts of piracy that border on international illegality, and the irrational imposition of tariffs on key trading partners.
Speaking of warmongers, paradoxically and symbolically, the Norwegian Nobel Committee decided to award the Nobel Peace Prize to María Corina Machado, the far-right leader who has called for military intervention and increased sanctions against Venezuela. This is further evidence that the Venezuelan right wing is to the right of Trump’s political views.
While it is true that the rise of the far right in countries like Chile, Bolivia, and Ecuador seems to strengthen Washington’s axis, Mexico’s solid leadership under Claudia Sheinbaum and Brazil’s stability demonstrate that Latin American sovereignty has deep roots. Venezuela’s resistance to the fiercest siege in its history is not only an act of national survival but also the epicenter of a struggle for regional self-determination, sovereignty, and independence from imperialist yokes.
Ultimately, 2025 closes with a resounding lesson for Washington: the natural resources and sovereignty of the Latin American and Caribbean peoples, who have chosen not to submit to foreign powers, can no longer be seized through obsolete 19th-century doctrines. In the case of Venezuela, the alliance with the Eurasian bloc and the strength of Venezuelan institutions have turned the “Trump Corollary” into a “paper tiger.” A free and independent Latin America already moves and lives in a multipolar world.
Opinion
Macroeconomic consequences of asymmetric UAV attacks in Russia
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:
- 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.
- 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.
- 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.
- 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.
Opinion
Egypt Under Fire: What Does the Damietta Strike Mean for Global Energy Markets?
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
4- https://www.nytimes.com/2026/07/29/world/middleeast/ships-drone-strike-egypt.html
Opinion
Rising populist parties in Europe and liberalism
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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