Opinion
How China Views the Crisis with Japan
Guard Against the Resurgence of Japan Militarism and Uphold the Post-WWII International Order
On October 21, 2025, Takaichi Sanae was elected the 104th Prime Minister of Japan, becoming the country’s first female prime minister. From October 27 to 29, Donald Trump visited Japan in the name of fostering the “long-term friendly relations” between the United States and Japan. On October 31, President Xi Jinping met with Japanese Prime Minister Takaichi Sanae while attending the 32nd APEC Economic Leaders’ Meeting in the Republic of Korea.
On November 1, Takaichi Sanae posted messages on her social media accounts about her meeting with personnel from the Taiwan authorities of China during the APEC meeting, along with relevant photos, and referred to the individual as a so-called “Presidential Office Advisor” of Taiwan. On November 7, when talking about the Taiwan question, Takaichi Sanae even claimed that if an armed conflict broke out in the Taiwan Strait, it might be regarded as a “national survival crisis situation” for Japan, implying the possibility of military intervention of Japan in the Taiwan Strait.
Such blatant provocation fully exposes the essence that the remaining poison of Japanese militarism has not been eradicated. This constitutes a gross act of interfering in China’s internal affairs. Japan has no qualification, let alone the right, to meddle in the Taiwan question. Takaichi Sanae’s reckless remarks on the Taiwan question, which concerns China’s core interests, have aroused strong indignation among the Chinese government and people, leading to a sharp deterioration in China-Japan relations.
Why Did Takaichi Sanae Make Such Remarks?
First, the most significant implication of Takaichi Sanae’s election lies in the full-scale rise of Japan’s far-right forces. Known as Japan’s “Queen of the Hawks”, Takaichi Sanae is characterized by two traits: extreme right-wing ideology and extreme anti-China stance. To put it bluntly, Japan’s right-wing forces are essentially Japanese militarism, which has always denied the heinous crimes of Japan’s aggressive history, sought to rearm Japan, and pursue external expansion once again. Regarding historical issues, she has visited the Yasukuni Shrine for many consecutive years and openly reveres Japanese war criminals. Militarily, her propositions are almost a return to the era of militarism—she advocates increasing defense spending and restoring Japan’s status as a military power. In terms of foreign policy, she insists on strengthening the Japan-US Alliance and adopting a tough stance against China. Takaichi Sanae’s ascent to power reflects Japan’s collective ambition and serves as a symbol of the overall right-wing shift in Japanese society.
Second, this is a necessity to consolidate her governing position. Although Takaichi Sanae was successfully elected President of the Liberal Democratic Party (LDP) and Prime Minister of Japan, she is confronted with an unprecedented political predicament. The LDP does not hold a majority of seats in either the House of Representatives or the House of Councillors of the National Diet, which means that even after assuming the premiership, Takaichi Sanae will be confronted with the predicament of “minority governance”, and she may encounter considerable difficulties in advancing her policies. Given her temperament, she is highly likely to take an extreme approach to rally public support to the greatest extent. Furthermore, Takaichi Sanae is also grappling with domestic livelihood challenges such as high inflation and the aging population coupled with a declining birth rate. Precisely because of the political instability within Japan, she has resorted to a tough foreign policy to garner more support; otherwise, her position as prime minister will be precarious.
Third, the United States is pleased with Takaichi Sanae’s remarks to some extent, as this enables it to transform Japan into a militarized forward position that serves as an American proxy to contain China. The United States has not favored Ishiba Shigeru, for it does not want the Japanese government to develop independent policy. What it desires is an extreme Japanese prime minister—one who will charge ahead at America’s slightest provocation. Beyond the United States, pro-American far-right forces in Japan are also eager to see their mouthpiece elected, making Takaichi Sanae the ideal candidate. Through the long-term propaganda of right-wing groups, many Western countries—Japan included—have been led to believe that China is to blame for all the problems they currently face. Hence, Japan’s fanciful agenda is to help American defeat China, revitalize the old globalization system, and reclaim its prominent position within that framework.
Fourth, Takaichi Sanae has made such remarks deliberately, willing to sacrifice China-Japan relations for her own political gains. She seeks to hype up the China threat theory by escalating Sino-Japanese frictions, using this as a pretext to push for constitutional revision and military expansion. This move is bound to set back China-Japan relations; furthermore, it can only further embolden Japan’s far-right forces through this deterioration of bilateral ties, thereby advancing constitutional revision and military buildup while exploiting the Taiwan question for political self-interest.
Fifth, Japan is always trying to exploit the loopholes in China’s commitment to win-win cooperation. China has always advocated mutually beneficial cooperation and win-win outcomes, and has consistently stressed resolving disputes through engagement and dialogue. Especially amid the complex and volatile state of global relations, China will avoid conflicts whenever possible and opt for cooperation where feasible. She is precisely seeking to capitalize on this mindset of China’s, under the assumption that China will not take any drastic measures against Japan.
Why Must China Demand Takaichi Sanae to Retract Her Wrong Remarks?
First, China will never allow the Japanese aggressors to have their way on the Taiwan question. Even if it comes to fierce confrontation, China must thoroughly dispel the reckless fantasies of Japan’s ultra-right wing elements, laying the groundwork for the ultimate reckoning with such ultra-right militarist forces in the future. When a country’s prime minister makes a consequential statement on a formal occasion, it becomes the political stance upheld by that nation. If the statement is not retracted, this stance can be perpetuated by subsequent governments of the country, or even wielded as a political tool by them. Takaichi Sanae made such remarks out of deliberate calculation. If China chooses not to respond, Japan will only push its luck further; if China takes a firm stance, Takaichi can then claim credit to the United States, secure American support, and even attempt to drag the U.S. into the fray. Takaichi Sanae clearly miscalculated in trying to achieve two objectives with one single move. China must resolutely prevent and oppose such acts.
Second, Japan is extremely anxious about China’s rise.Unlike Germany, Japan has committed unforgivable heinous crimes against China and it has yet never intended to offer a sincere apology. It is petrified that a rising China will hold it accountable for its historical atrocities—a guilty conscience is deeply ingrained in its national psyche. We have never forgotten the blood debt owed to 35 million compatriots, while Japan has been unable to face up to this history. So what is its recourse? Since Shinzo Abe’s tenure, Japan has been relentlessly seeking to provoke a showdown between China and the United States. Subsequent administrations have largely followed this trajectory, with occasional temporary detours—such as Ishiba Shigeru’s one-year term in office. As a devout follower of Shinzo Abe, Takaichi Sanae, upon taking office, has lost no time in doubling down on this course of action. In essence, Japan harbors malicious intentions: it seeks to rely on the United States to contain China, disregarding the interests of both the Japanese people and those of other Asian nations. Such provocative acts against China are nothing but a case of harming others without benefiting oneself.
Third, most importantly, Taiwan is an inalienable part of China’s core interests, and brooks no meddling by Japan whatsoever. As a defeated nation of World War II, Japan is not a fully sovereign normal country. Unlike Germany, Japan has never offered a sincere apology to the countries it victimized. It is imperative to recognize that the Cairo Declaration and the Potsdam Proclamation constitute the most important cornerstones of the post-WWII international order formulated under the auspices of the United States. Issued jointly by China, the United States, and the United Kingdom on December 1, 1943, the Cairo Declaration focused primarily on the Asia-Pacific region. Its core tenet was to strip Japan of all territories it had seized in the Pacific since 1914, and it explicitly stipulated that “all territories Japan has stolen from the Chinese, such as Manchuria[Northeast Provinces], Formosa [Taiwan] and the Pescadores [Penghu Islands], shall be restored to the Republic of China”. The Potsdam Proclamation, released by China, the United States, and the United Kingdom on July 26, 1945 (with the Soviet Union acceding to it in August of the same year), centered on demanding the unconditional surrender of Japan’s armed forces and stipulated that “the sovereignty of Japan shall be limited to the islands of Honshu, Hokkaido, Kyushu, Shikoku and such minor islands as we determine”. Japan has absolutely no justification to interfere in matters related to Taiwan, and what is more, even the Ryukyu Islands are not legitimately part of Japan’s territory.
Forth, in recent years, Japan has been gradually breaking through the constraints of its Exclusive Defense Principle, ramping up military expenditure, lifting restrictions on its military capabilities, and even seeking to acquire nuclear weapons—all of which lay bare its ambition to revert to the path of military expansion. This constitutes nothing less than a direct challenge to the post-WWII international order. Japan also attempts to actively cooperate with the United States in deploying intermediate-range missile systems in the Asia-Pacific, with these moves clearly targeted at China. Historically, Japan has invaded China time and again and has never abandoned its expansionist ambitions; the trigger for its aggression during WWII was precisely its domestic economic crisis. Today, Japan is edging perilously close to the same state it was in prior to WWII. Once Japan embarks on the road to militarism again, it will pose a grave challenge to the world order.
What Does the Future Hold for China-Japan Relations?
In any case, Takaichi’s blatant advocacy of her contacts with so-called “Taiwan authorities” personnel and her implication of military intervention on the Taiwan question constitute a gross provocation against China’s red lines. This is a clear indication of her entrenched anti-China stance. The resurgence of Japanese militarism has always been something that China vigilantly opposes, and the Taiwan question represents the very core of China’s core interests. Given Japan’s blatant affront on this front, China will certainly not show leniency and is bound to take countermeasures.
First, China must curb the resurgence of Japanese militarism. Diplomatically, China will certainly take political and diplomatic measures to counter Japan; at the very least, it will scale back diplomatic engagements with the country. In terms of economic and trade relations, adjustments to the cooperation framework are inevitable. In the East China Sea, particularly around the Diaoyu Islands, China will further intensify the regularized patrols for safeguarding maritime rights and interests, and also strengthen military deployments and operations in the direction of Japan. Japan’s economy is currently under considerable strain, and the deterioration of China-Japan relations will undoubtedly add insult to injury for Japan’s economic prospects. Besides, the United States will by no means loosen its control over Japan.
Second, China must take necessary measures to compel Takaichi Sanae to retract her erroneous remarks on Taiwan. If this round of China-Japan dispute over the Taiwan question ends up unresolved, future Japanese administrations will have a de facto theoretical basis to intervene in Taiwan affairs. This is because the remarks were a formal statement made by a Japanese prime minister. If the remarks was never withdrawn, this is something China will never tolerate. It is precisely the petty tactic that the Japanese side has long resorted to—and neither the Chinese government nor its people will acquiesce to it. To date, neither Takaichi Sanae nor the Japanese government has explicitly retracted those erroneous remarks, which means they have not acknowledged their mistakes. Therefore, we should not be overly optimistic about the future of China-Japan relations. Similar to the Diaoyu Islands crisis back in the day, if Japan persists in refusing to correct its erroneous stance, the friction will very likely escalate further.
Third, the countries victimized by Japan during World War II must unite more closely to thoroughly hold Japan accountable for its militarist past and jointly contain and counter the resurgence of Japanese militarism. Centered on Asian nations, the victim countries of Japan in WWII also include those in the Pacific region and some European and American states. Virtually all countries that had military conflicts with Japan or were invaded and occupied by it suffered varying degrees of casualties and property losses.
Among them, the major Asian victim countries—the core regions of Japan’s aggression—include China, the DPRK, the ROK, the Philippines, Indonesia, Myanmar, Vietnam, Cambodia and Laos. The victim countries in the Pacific region cover the United States, Australia and New Zealand. Other victim countries also include the United Kingdom (including its colonies of Singapore and Malaysia) and the Netherlands (including its colony of Indonesia).
It can be said that Japan’s pursuit of a policy of foreign aggression and expansion during WWII extended across Asia and the Pacific, victimizing dozens of countries and involving billions of people. The people of these countries were not only subjected to direct massacre, oppression and plunder, but also endured long-term economic decline, social division and psychological trauma brought about by the war. This history has become a shared painful memory of humanity and also an important backdrop for the construction of the post-war international order.
Fourth, the revenge sought by Japan’s right-wing forces is not measured in decades, but potentially in centuries. To the United States, a nuclear-armed Japan bent on revenge would pose a threat incomparable to the Pearl Harbor attack of the past. Needless to say, this process would also be one that leads Japan to its own destruction.
The Chrysanthemum and the Sword (written by Ruth Benedict)—the book by an American scholar that examines the Japanese nation—contains a classic summary of Japanese character traits: “The Japanese are, to the highest degree, both aggressive and unaggressive, both militaristic and aesthetic, both insolent and polite, rigid and adaptable, submissive and resentful of being pushed around, loyal and treacherous, brave and timid, conservative and hospitable to new ways.” These psychological and character traits of the Japanese can, in fact, be further condensed into a single sentence: extreme deference to strength and extreme contempt for weakness. When dealing with countries weaker than itself, Japan’s ultra-right militarist forces embrace extreme nationalism; yet in the face of the United States—a power far stronger—it instantly reverts to extreme colonial subservience.
Of course, Japan’s deference and obedience to the United States will not be permanent. If the decline of U.S. power crosses a critical threshold, the Japanese will come to believe that the United States no longer deserves their reverence. At that point, their sentiment toward the U.S. will turn to disdain and hatred. In other words, once Japanese militarism revives, the United States will likely be its first target.
Therefore, in a broader sense, Sanae Takaichi’s remarks not only challenge the one-China principle but also attempt to repudiate Japan’s commitment to its unconditional surrender in 1945—a red line that no country which suffered Japanese aggression, including the United States, can ever tolerate.
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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