Opinion
Iran: Left hand continues to embrace the Arabs, right hand clashes with Israel
On the morning of 26 October, Israel launched a major three-stage attack against Iran, codenamed ‘Day of Repentance’, in retaliation for the second rocket attack on 1 October. Israel’s Jerusalem Post reported that the Israeli air force used hundreds of stealth fighter jets to ‘accurately’ hit Iranian military targets. According to the information gathered, Israeli warplanes targeted Iranian military bases related to air defense, missiles and drones in Tehran, Khuzestan, and Ilam provinces.
Israel later announced the end of the counter-offensive against Iran. The Times of Israel reported that the Israeli government, through a third party, had informed Iran in advance of the targets of the attack and warned it not to respond. This is the first time Israel has carried out an air strike against Iran since its independence, and the fact that it easily defeated Iran’s air defense system shows that Israel has absolute air dominance over Iran, long-range precision strike and large-scale bombing capability. The F-35 stealth fighter is said to have a range of up to 3,500 kilometers at maximum payload.
Iranian official sources said the vast majority of the attacks had been thwarted, causing limited damage, and killing two soldiers. Iran’s First Vice President Ali Reza posted a message on social media saying, ‘Iran’s power has shamed the enemy’. Iranian airspace was immediately opened and civil aviation returned to normal. However, the Iranian Foreign Ministry said it reserved the right to retaliate against the attacks.
Pakistan, Egypt, Saudi Arabia, the United Arab Emirates, Jordan, Oman, Qatar, and Iraq immediately condemned Israel. Jordan also denied allegations that Israeli warplanes had been allowed to fly over it. The United States said it supported Israel’s right to ‘self-defense’ and warned Iran not to retaliate.
In full view of the world, the ‘second stage’ of Israel’s retaliation finally took place, and the severity and scope of the attack was as expected. Iran’s nuclear and oil facilities were not targeted and there were no serious casualties. Almost all Arab countries with diplomatic relations with Israel condemned the attack. Therefore, symbolic reprisals between Iran and Israel are expected to end in the short term.
While the possibility that Israeli stealth warplanes flew through Jordanian and Saudi airspace to carry out the attack cannot be completely ruled out, there is no evidence that the Arab neighbors are aiding Israel in violation of their recent pledges, nor is there evidence that US warplanes in these countries were involved in the attacks.
More importantly, Iran has entered a period of rapprochement with its Arab neighbors, indicating that it wants to avoid further escalation. On the other hand, Iran is leading a united front of Shiite colors, the ‘Axis of Resistance’, continuing its past proxy and shadow wars with Israel. Thus, while the left hand embraces the Arabs, the right hand can create a new normalization process in the conflict with Israel and exhaust Israel with a long-term low-intensity warfare method. Iran, which finds its new and solid relationship with Saudi Arabia particularly valuable, is trying to win back the Arab countries that once distanced themselves from it.
On the 23rd, Turki al-Maliki, spokesman for the Saudi Arabian Ministry of Defence, announced that Saudi Arabia had recently conducted joint naval military exercises with Iran and other states in the Gulf of Oman. On the 19th, Iranian media reported that Iran, Oman, and Russia had launched a joint naval exercise in the Indian Ocean to which observers from Saudi Arabia, Qatar, India, Pakistan, Bangladesh, and Thailand had been invited. In addition, the Iranian Student News Agency quoted Iranian Navy Commander Shahram Irani on 21 October as saying: ‘Saudi Arabia has asked to hold joint exercises in the Red Sea’.
The sudden increase in military interaction between Iran and Saudi Arabia, Oman and other Arab neighbours shows that the major powers in the Persian Gulf region are actively seeking cooperation and trying to take control of the situation in an environment where the Palestinian-Israeli conflict continues and there is no hope of a quick resolution. The fact that Iran and Saudi Arabia held joint military exercises for the first time demonstrates the strengthening of strategic trust and interaction following the historic reconciliation brokered by Beijing in March last year. It also underscores the Middle Eastern countries’ quest for independent leadership in regional affairs and their determination to rebuild their geopolitical relationships and security structures. It also increases the likelihood that US efforts to create a ‘Middle Eastern version of NATO’ with Israel and the Gulf Arab states will fail.
Therefore, despite Israel’s large-scale bombing of Iran, Iran is still in an advantageous position and the influence of the superpowers in the region has been revealed. The fact that the two military exercises took place back-to-back and covered a large area of the Persian Gulf and Red Sea, as well as the lack of open support for Israel’s air strikes by neighboring countries, indicates that Iran has activated the situation.
Moreover, Saudi Arabia’s covert efforts to persuade Israel, and Iranian Foreign Minister Abbas Araqchi’s ‘peace efforts’ and ‘diplomatic shuttle’ with Egypt and the Gulf Arab states, appear to have forced Israel to limit its attack targets to Iran’s military installations and to ignore its nuclear and oil facilities. This is fully in line with the expectations of all parties. It should also be noted that this is a period when the interests of the US and Israel are not fully aligned.
The current situation in Iran has improved significantly. In April this year, Iran carried out its first major air strike against Israel, and traditional allies such as the United States and Britain intercepted Iranian missiles and drones with naval and air power. The Arab neighbors between Iran and Israel explicitly or implicitly supported Israel: Jordan was directly involved, deploying its air defense forces and opening its airspace to Israeli warplanes. Saudi Arabia and the United Arab Emirates reportedly provided intelligence support to Iran’s rivals.
The military impact of Iran’s initial retaliation against Israel was almost nil. This was due to the fact that Israel was fully prepared, having been warned in advance of the targets to be attacked, and that it chose weak precision-strike weapons systems with long flight times, but it was also clear that American naval and air bases in Arab countries played an important role in the intervention.
By carrying out the first air strike, Iran earned the title of ‘brave’ for a proportionate retaliation in accordance with international law and enhanced the credibility of the ‘axis of resistance’, which included parties such as Syria, the Islamic Resistance Movement in Palestine (Hamas), Lebanese Hezbollah, the Houthi militias in Yemen and the ‘Popular Mobilisation Force’ in Iraq. Iran thus consolidated its leading position vis-à-vis Israel but lost the diplomatic battle and found itself at odds with its neighbors. This time, however, Iran has escaped the isolation and distress of the struggle with Israel and has won the sympathy of its Arab neighbors.
The rapprochement between Iran and its Arab neighbors could reduce the shadow cast by Israel’s air strikes. In a recent joint naval exercise, Iran cooperated not only with its traditional post-Cold War ally Russia, but also with Oman, where the US and Britain have military bases, and notably invited its old rival Saudi Arabia as an observer. Most pleasing to Iran was Saudi Arabia’s rapprochement and cooperation, which marked a significant shift. Saudi Arabia announced that it would be a participant in the joint exercise, not an observer, which undoubtedly strengthened Iran’s position and reinforced the two countries’ efforts to implement the ‘Beijing Declaration’ and increase strategic trust and cooperation.
Saudi Arabia has also contributed to the reshaping of the regional security architecture by calling for joint exercises with Iran in the Red Sea, its traditional sphere of influence. This could be a sign of Saudi goodwill towards the pro-Tehran Houthi militias, as well as an opportunity for Tehran to wait for the Houthis to resume ceasefire negotiations that have been stalled for years. If the war in Yemen ends with the withdrawal of coalition forces, it would be a complete victory for the Houthi militias and Iran would emerge as the big winner in the long-running conflict in Yemen and the Red Sea.
In June this year, Iran proposed the establishment of a maritime security cooperation mechanism with Saudi Arabia and other regional countries, with the aim of increasing the security defense independence of countries in the region. The consolidation and expansion of the reconciliation process with Saudi Arabia, followed by joint military exercises with Oman and Saudi Arabia, have taken Iran’s idea of regional maritime collective security a step further and partially expanded the diplomatic initiative.
Iran’s diplomacy has taken a new direction and is linked to Saudi Arabia’s recent rapid diplomatic shift. Israel’s aggressive policy, its refusal to recognize the ceasefire in Gaza and the deep suffering of the Palestinian and Lebanese peoples have put enormous internal and external pressure on Saudi Arabia, which sees itself as the Arab leader. This is why Saudi Arabia has not only postponed indefinitely negotiations on a military alliance with the United States but has also suspended the normalization of relations with Israel. At the same time, it returned to the principle of ‘peace in exchange for land’ that it had been advocating since 1982 and maintaining for almost half a century, stressing the need to implement the two-state solution and ensure Palestinian independence, and declaring that only in this way would normalization of Saudi-Israeli relations be possible.
In this way, Saudi Arabia is expressing its dissatisfaction with the unilateral US support for Israel and its anger at the ‘Israel kills and the US holds the knife’ model. At the same time, it is trying to show the Palestinians, the Lebanese, and the entire Arab and Islamic world its responsibilities and obligations as a great power. In this respect, Saudi Arabia and Iran are engaged in a new competition for power peacefully.
Iran, as a non-Arab country of Persian nationality and Shia faith, has raised the banner of Palestinian liberation, leading many non-nation actors to play a new leading role in the Middle East conflicts. This role reversal places Arab countries seeking reconciliation with Israel in a dilemma of “big interests, small morals”, which deeply upsets the political balance of power in the Arab world. This, in turn, has negative consequences for the overall stability and political tradition of the Arab world and has the potential to ultimately undermine the core interests of US allies such as Saudi Arabia.
There are structural conflicts between Iran and Saudi Arabia, including sectarian, ethnic, political system, national strategy, and foreign policy differences, as well as competition for regional status and Islamic discourse. This has led to strained relations, frequent clashes, and even multiple breaks over the past 40 years. The roots of these conflicts lie not only in internal differences on both sides, but also in the rivalry of external powers during and after the Cold War. More than a decade of violent conflicts, from the ‘Arab Spring’ to the ‘Arab Winter’, further deepened the Iranian-Saudi conflict and brought it to a peak; eventually, both sides, overstretched with their limited forces, sought compromise and peace.
The declining influence of the traditional great powers has made Middle Eastern countries more aware of their own independence and empowerment, enabling Iran and Saudi Arabia to take stock of the situation, completely put aside past hostilities and actively reach out to each other. China’s mediation played an important role in this reconciliation.
By mobilizing the ‘Axis of Resistance’, Iran is launching a ‘sixth Middle East war’, unlike the five previous Middle East wars, confronting Israel on seven fronts. This has significantly shifted Israel’s key rivals, decision-making centers and ‘storm center’ from Cairo and Damascus to Tehran. Strategically, it has elevated Iran’s superpower status in the region and strengthened its geographical influence from the Caspian Sea to the Red Sea. This massive change and transformation have led Saudi Arabia to choose to actively participate in and shape Iran’s reshaping of the geopolitical map rather than passively accept it; in other words, it has decided to sit at the table rather than be the dish on the menu.
In this new Middle East war, which stretches from the eastern Mediterranean to the Persian Gulf, although the quite different and even contradictory positions and secret games between Iran and Saudi Arabia on resolving the Palestinian-Israeli conflict continue, the two countries have passed the tough tests and wisely managed to avoid confrontation. This has not only preserved reconciliation, cooperation, and stability, but also contributed to deepening strategic trust and increasing positive interaction. This is certainly a welcome sign of optimism for the turbulent Middle East and worthy of support.
However, the Palestinian-Israeli conflict is the direct cause of Israel’s ‘war on seven fronts’ today. The key to an immediate ceasefire in the ‘sixth Middle East war’, involving large and multinational civil society actors, is to extinguish the flames of conflict in Gaza. Lasting peace and security in the Middle East depend on a fundamental settlement of the territorial disputes between Israel and Palestine, Lebanon, and Syria. This requires getting rid of the deep-rooted dreams of a ‘Greater Israel’, the law of the jungle mentality and the belief in the use of force.
Similarly, Iran, a perennial flashpoint, must realize that geopolitics cannot be a source of livelihood, even if decades of complex relations reflect ‘Persian acumen’. Persian acumen’ should seek a win-win situation based on peace that benefits others as well as itself. The pursuit of national interests and the attainment of great power status must be in line with the trend towards peace, development, and prosperity, especially for one’s own people.
Today, while there is a growing tendency among Arab and Islamic countries in the Middle East to live in peace with Israel, Iran clings to the past and refuses to recognize Israel’s existence as a sovereign state, placing it in a tense standoff with the United States and the Western world. This leads to the suffering of its own people due to the prolonged blockade and sanctions, while at the same time increasing the tension of the Middle East conflicts, the fragility of geopolitical relations and the fragmentation of regional governance. As a result, this paves the way for far-right forces in Israel to gain strength and solid popular support. As a result, proposals for ‘peace for land’ and a ‘two-state solution’ have failed to materialize.
Prof. Ma is Dean of the Institute of Mediterranean Studies (ISMR) at Zhejiang International Studies University (Hangzhou). He specializes in international politics, especially Islam and Middle East politics. He worked for many years as a senior Xinhua correspondent in Kuwait, Palestine, and Iraq.
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.
-
America2 weeks agoUS agricultural superpower status at risk as trade wars shift global markets to Brazil
-
America2 weeks agoUS controls $13 billion in Venezuelan oil revenues with little transparency, raising congressional concerns
-
Europe2 weeks agoUS secures multi-billion-dollar energy and AI deals at Three Seas summit in Dubrovnik
-
Diplomacy2 weeks agoPalantir CEO Alex Karp says he would not vote for ‘pro-Russian’ AfD in Germany
-
Diplomacy2 weeks agoWorld Bank warns US-Iran conflict could slash global growth to 1.3% as inflation looms
-
Middle East2 weeks agoPentagon faces severe budget crunch as Middle East operational costs drain key military funds
-
Europe2 weeks agoGermany accelerates African energy diplomatic push to secure natural gas and green hydrogen
-
America2 weeks agoAIPAC cuts online donation links for Democrats after Israel aid vote
