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After the Wagner’s revolt

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The Wagner revolt ended with Lukashenko’s intervention.

Two main views attract my attention. One group is more or less in favour of the following attitude: “Oh dear, it’s Russia, these things happen, it’s no big deal.” Another version of this is: “Do you think that a coup can succeed in a big country like Russia?” The other group is roughly saying: “It is very important, if this military coup succeeds, the Kremlin will fall.”

I too think it is very important, but from a completely different perspective.

Informational non-barriers to the coup attempt

Let me begin by re-stating the following. I have persistently and repeatedly argued that many of the claims made about Russia and used as the basis for intellectual activity in the West do not reflect reality. That Russia is authoritarian and totalitarian, the Russian people are warlike (or war-averse), the Russian leadership is Russian nationalist are completely wrong. They are not objective, but fabricated, distorted views about society, state and politics. These are pseudosciences, just like “Kremlinology”, which was all the craze during the Soviet Union (and is now being stewed again), and even if they sometimes offer seminal propositions, their foundations are too flimsy to be taken seriously.

In reality, Russian society is uniquely open. Paul Craig Roberts, Reagan’s undersecretary of the treasury, said as much at the turn of the millennium. Despite widespread intellectual and cultural degeneration, there is sometimes a naive hunger for information. The issue is not the claim that “there are no barriers to information in the information age”. What I mean is that there is a qualitative difference in the quantity of those who need the flow of information. In Western societies, there is more “many-sidedness” and more of it is not needed, but it is certainly intra-systemic. In Russia, no matter how much many-sidedness there is, more of it is sought.

The events of yesterday confirmed this observation. A continuous and multidirectional flow of information, the like of which is impossible to find elsewhere: anyone who wished could find any opinion he wanted on the telegram channels, on the websites and even on the television screens, and, moreover, the audio, video, and written messages of Prigozhin, who had been declared a traitor only in the morning, were widely circulated. So too were the calls to subdue and even destroy the Wagnerians at the point of the bayonet.

Unpredictable spontaneity

The history of Russia is full of spontaneous, sudden, and unpredictable upheavals. Almost all the social, political, military, etc. movements that have shaken Russia have been completely unpredictable and spontaneous. There is one single and great exception: The October Revolution.

Unpredictability does not mean political independence of the actors. On the contrary, actors act by sensing hoe the wind blows and establishing relations with potential allies to the extent that they do not narrow their room for manoeuvre. Considering that the day before he was almost an angel of peace for the Kiev regime, Prigozhin’s action was clearly a digging in the ground for possible relations. The support of the defunct oligarchs, the strange and meaningful silence of the existing oligarchs, the fact that the financial arm of the government, unlike the siloviki arm, carefully avoided statements of support for Putin and played it out over the weekend should be taken as evidence that Prigozhin was digging in the right place.

I actually touched upon this when I commented on Putin’s speech the previous morning.

The reminder of “1917” in this speech may refer to two things: the February revolution, or the Kornilov putsch.

“We know only a single science: the science of history,” Marx wrote. One of the greatest tragedies of the age should be that the left is losing its historical consciousness to a considerable degree. When they think of 1917, they do not remember February, July or Kornilov; all they think of is October.

Putin’s anti-revolutionary stance is well known, but the context of the speech attributes much more to him than that.

If Putin was referring to Kornilov, there is a solid internal coherence, since the Kornilov putsch after the July uprising was the real beginning of the collapse of the provisional government. But in this case, Putin is drawing a parallel between himself and Kerensky.

If he meant the February uprising, the problem is more complicated. February was not just a spontaneous uprising. The uprising itself shows that a state of paralysis of state power had long since emerged, but in the process that led to and resulted in the tsar’s abdication, there was a power conflict that had been brewing since 1915, and behind it was a conspiracy involving the grand prince and a number of front commanders. So, if February is what is meant here, the problem is much more serious.

I will not discuss which assumption is correct.

Spiral history

It is one of Marx’s well-known sayings: “Hegel remarks somewhere that all great world-historic facts and personages appear, so to speak, twice. He forgot to add: the first time as tragedy, the second time as farce.”

How many times it repeats itself is a question mark. This is related to the spiral development of history, each new historical period repeats similar events of a sub-segment in a new, highly degenerated form.

Mussolini travelled to Milan on 27 October 1922. On the same day, in Perugia, the National Fascist Party’s appeal to the Italian people that the “march to Rome” had begun was published.[1] The “squadristi” (squad) marching columns, estimated at 10-30 thousand in total, mobilized under the direction of “quadrumviri” (quattro-four; four leaders of the march). The squadristi began to arm themselves, either by raiding army depots along their route or by volunteers from local army units. Prime Minister Luigi Facta declared that the country was on the brink of rebellion and prepared to declare a state of emergency. On 28 October, the king held talks; despite the army’s declaration of loyalty to the king, he refrained from declaring a state of emergency and dismissed the prime minister. Mussolini opposed a coalition government in which the fascists would participate and demanded the premiership. The squadristi were within 50 kilometers of Rome. On 29 October, the king surrendered to the blackmail of Mussolini. On 30 October, Mussolini and his squadristi entered Rome more or less simultaneously. Mussolini, supported by the army and the grand bourgeoisie, received authorization from the king, and the fascist government was formed. The king remained on his throne, but as a hollow puppet, a straw, impotent scarecrow.

Prigozhin called his action a “march for justice” against “corruption, lies and bureaucracy”. Who could oppose such a demand? Who could oppose the black shirts demanding justice?

A perfect choice of slogan for the fascist movement

As always, history proved Marx right again. Prigozhin appeared on the scene as a runt Mussolini and withdrew, fearing the possible consequences of his action, namely that he would not be able to obtain the consent of the people and would fall into disaster. Mussolini had risen on the promise of raising Italy, which had managed to emerge, albeit muddy, from the mire of disaster, while Prigozhin was a candidate to drag Russia, far from disaster, into the gutter. Mussolini had nothing to lose, Prigozhin had everything to lose.

I should make a note here, which I will refrain from dwelling on for the moment. Let us remember that Zhirinovsky died on 6 April last year. Zhirinovsky functioned as an air cushion from which potential unrest could crash and take the momentum away. His death created a vacuum in politics. All the conditions were ready for the petty-bourgeois rightism he represented to shift to another center. How voluntary it was is debatable, of course, but the nature of things was such that Prigozhin emerged as one of the main candidates to fill this vacuum.

This is how the danger of petty bourgeois rightism, a political tendency that is actually quite close to the left, given the material conditions that created it, evolving into a fascist movement emerged.

Why was it not suppressed? One: fundamental reasons

The question of why the armed forces did not take action against the Wagnerians is a legitimate one. It must be answered from two different perspectives.

The first is the reasons below ground.

It is worth going into detail because the dynamics continue to work.

In his first speech on the morning of 24 February, Putin said that they would not be caught unprepared as in 1941. Let us recall the exact wording:

“We know that in 1940 and early 1941 the Soviet Union went to great lengths to prevent war or at least delay its outbreak. To this end, the USSR sought not to provoke the potential aggressor until the very end by refraining or postponing the most urgent and obvious preparations it had to make to defend itself from an imminent attack. When it finally acted, it was too late.”

This means that the Ukrainian conflict, as I have mentioned in all my articles on the impending conflict from November 2021 onwards, was considered a kind of “winter war.” In other words, it was not planned as an aggressive war at all, but as the only means of preventing a bigger war.

That is, the discourse of “we intervened to stop the war that started in 2014” reflected a genuine, sincere belief, even if its (in)accuracy was debatable. However, the discourse naturally included the emphasis on “we will not make the mistake of 1941, we will not delay”, whereas, as Putin admitted for the first time last autumn in a meeting with women who had lost relatives at the front, they had delayed.

One could argue that this delay has a political content, that is to say: yes, but we were not caught unprepared militarily, which is contrary to the nature of things. The development of the war industry and the output of modern weapons and technology undoubtedly meant preparation, but many problems also arose in the organization of the army in terms of supply, logistics, personnel, troops and command. These problems had to arise; nothing more natural than these problems arising when an army that has not been in combat begins to fight.

The problem is that in 1941 these problems were solved with much greater speed, because the state and society had been mobilized down to the core, because they could be mobilized, because the state did not have to calculate in the face of the bourgeois greed for profit. However, as I wrote in March: “… so many and difficult problems arose, from the provision of equipment for the soldiers to the establishment of unity of command and even the transport of those summoned to their posts, that this dynamic was inevitably transferred to Wagner.”

There is therefore no point in roundabouts and clichés about the general tendency of capitalism towards mercenary companies and how this is a sign of political decay. These clichés seem to say a lot, but they do not recognize that the current situation is not caused by a tendency, but by a concrete and burning problem.

Such are the “experts” on the left. As for the “experts” on the right, who are always on the TV screens in Turkey, they have finally learnt that there is such a thing as a Wagner (although they have never learnt why it is called a Wagner, but one should not expect them to, since each of them is a jar of intelligence, history and politics, and since the jar is full to the brim, it cannot hold much); therefore, there is no need to go into the history of this mercenary company.

In passing, it is worth mentioning the legal side of the matter. According to the Constitution, mercenary labour is prohibited in Russia. But there is a loophole in the legislation, military companies are not considered mercenary companies. They are considered as “private detective and protection activities” established according to the corporate law.

In fact, a loophole in the legislation is a ridiculous phrase; in bourgeois law, the legislation is written for the sake of a loophole. This gap is closed in different ways depending on the threat or advantage.

Two: root causes

Let’s come to the technical, “cyclical” (but not unimportant) answer to the question “Why did this happen?”. I emphasized this several times during the day yesterday.

Firstly, by the very nature of things, no army, except the armies of colonial countries, which are mainly organized against a possible civil war, develops serious strategies based on the possibility of confronting another army (regular or guerrilla army) inside the country. (This is precisely what made colonial countries a paradise for military coups for more or less the entire second half of the 20th century).

Secondly, in the current situation, with probably all the experienced combat troops at the front, in border areas and bases, only the following forces are left to intervene against another armed army inside: police, gendarmerie, intelligence and air force. The Russian equivalents of the second and third are the Rosgvardiya, the Ministry of Emergency Situations, and the Federal Security Service (FSB).

Stopping heavily armed professional units, advancing in tanks and armour, armed with stinger-type air defense weapons and having recently undergone a major combat experience, is very difficult, even if their personnel numbers are relatively small, and perhaps almost impossible without heavy bombardment by the air force. It is necessary to isolate the advancing enemy army from the civilian population. But this, too, is close to impossible, because the situation has developed so rapidly that normal life goes on in a strange, almost surreal way. Civilian casualties are therefore inevitable.

More important are the difficulties of capturing a city that has actually fallen, not of stopping the incoming. Moreover, this city, as in the repeated experiences of 1919 and 1942, is of strategic importance; it is the gateway to the south. The targeting of this city by Wagner points to serious strategic work and recalls tragic historical experiences.

The most important thing is the political consolidation of the masses. At the present stage, this coup army has not interfered with the administrative and municipal organs. It has not even intervened in the military-law enforcement organs. It is enough only to stop them from implementing the orders they have received or to make it clear that it will stop them. Moreover, the coup army has achieved tremendous successes on the front (this expression does not mean affirmation) and these successes have brought it great prestige in the eyes of the masses. Moreover, this prestige has been reinforced by the government itself through television adverts, giant billboards, and praising speeches at official receptions.

In other words, there are all the conditions for a rapid escalation of the conflict, but there are also conditions for keeping it under controlled tension.

These are very serious, deadly problems. No one can easily predict the military and political consequences. It is no coincidence, therefore, that throughout the day, especially from the Russian left, there have been discussions of the possibility of a chain reaction effect of the conflict, which (1) could lead to a moral breakdown at the front; (2) might require a shift of troops from the front to stop the coup army; (3) in either case could lead to a setback at the front; (4) could result in political defeat vis-à-vis NATO; (5) political defeat could lead to internal turmoil, etc.

Independence tendencies

The main subject of my article in March was the following (I summarize it in the roughest outline): There have been many times in Russia when insignificant men have gained enormous importance. Prigozhin is also trying to become an independent political force. This tendency is also gaining strength elsewhere. The process will inevitably end in liquidation.

One of the underlying causes of the capitalist restoration and the resultant localized civil wars in every sense of the word in 1990 was the decision in September 1989 by a plenum of the CC of the CPSU to cede its powers to the union republics: “The most important sentence in the resolution, quoted by Putin, is this: ‘The highest representative bodies of the union republics may, on their territory, protest and stop the implementation of the decrees and instructions of the union [USSR] government.’ It is difficult to find another example of any government declaring its own existence meaningless. In any case, this would mean the disintegration of the Soviet nation.” It meant that Moscow was handing over its legitimacy to someone else.

It is as ironic as it is tragic: It was this decision of the CPSU that brought about the end of the Soviet Union as a state, where, in Putin’s words, “borders were fictitious and decisions were centralized”, but it was Putin’s hesitation to suppress tendencies towards autonomy that has been his method of governing on the ruins of capitalist restoration, while at every opportunity accusing Lenin, who founded the unity of modern Russia, of breaking up “historical Russia”.

Now an upheaval is inevitable. Firstly, there will be an upheaval that will suppress the tendencies towards independence, and this process will proceed step by step, but with determination. It is not only Wagner, but everyone and everything like Wagner, and they are particularly strong in the local organs of power.

Yesterday’s events have clearly shown that if the central authority is content with the function of coordinator among the subordinates, it will disintegrate; the central power must suppress the independent will of the subordinates and make them dependent on itself.

[1] This event is translated into Turkish (and other languages) as “march to Rome”, and into Russian as “campaign to Rome”. Maybe “marcia” in Italian also means “campaign” in our language, I don’t know. But “campaign” better reflects the spirit of the action.

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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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