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Israel has reached a ‘strategic crossroads’

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On 11 September, the Pentagon announced the return of the aircraft carrier USS Roosevelt, signalling the end of the US operation to keep two groups of warships in the Middle East and signalling an easing of the situation in the Middle East. On the same day, Israel offered Yahya Sinwar, leader of the Palestinian Islamic Resistance Movement (Hamas), to leave the Gaza Strip with his family in order to reach a ceasefire agreement, signalling that Israel was considering ending the siege of Gaza. However, it is unclear whether Netanyahu’s right-wing government will move from one battlefield to another, ending its offensive in Gaza in the south and turning north towards Lebanon.

The Israeli-Palestinian conflict has entered its 12th month and there are no winners. The biggest losers are, of course, the Palestinians living in the Gaza Strip, ‘hell on earth’ and ‘the biggest open-air prison’, where more than 41,000 people, mostly civilians, half of them women and children, have lost their lives. The humanitarian crisis, in which dozens or even hundreds of Gazan civilians die every day as a result of various Israeli attacks or bombardments, has turned the suffering of 2.3 million Palestinians into hell. However, the third ‘national catastrophe’ since 1948, and the highest cost of living in 76 years, has not led to an end to Israel’s illegal occupation, and the six Arab states and the Palestine Liberation Organisation that have normalised relations with Israel have not returned to the principle of ‘peace in exchange for land’ – the peace price paid has not returned the occupied territories.

Israel’s overwhelming superiority over the Palestinians is by no means a victory: the country has been plunged into a rare state of war, foreign investment has been withdrawn, flights have been disrupted, credit ratings have been downgraded, the international image has been shattered and internal contradictions have come to the fore, with political elites blaming each other. Israel, the world’s military power, lost at least 500 tanks and infantry fighting vehicles, at least 670 soldiers were killed in action, 11. 000 soldiers in need of psychiatric treatment, atrocities committed by soldiers who cannot control their behaviour or violate the laws of war or humanity continue to come to light, the entire Israeli army is depleted as a result of ongoing military operations, there is a clear shortage of soldiers and religious students have been forced to enlist, and delays in reaching a ceasefire have led to a situation where 251 people who lost their freedom at the outbreak of the conflict were forced to join the Israeli armed forces. The delay in reaching a ceasefire, which led to the deaths of 251 detainees who had lost their freedom at the outbreak of hostilities, triggered waves of protests and demonstrations in Israel.

Israel’s biggest problem is that it faces condemnation, accusations and prosecution for ‘ethnic cleansing’ and ‘war crimes’ and even ‘crimes against humanity’ for exceeding its right to self-defence and using excessive force. It has also stirred up a hornet’s nest of geopolitical tensions in the Middle East, leading to a number of State and non-State actors joining forces to directly or indirectly engage in conflict with Israel in support of Palestine, notably Iran and Syria and four major factions forming a coalition between hard-line forces, including the Palestinian Hamas, the Lebanese Hezbollah, the Iraqi Popular Mobilisation Forces, the Iraqi Popular Mobilisation Forces, the Yemeni Houthi forces and the Palestinian National Liberation Front. The formation of an ‘axis of resistance’ by Iran and Syria, together with four major groups (Hamas and other Palestinian hardliners, Hezbollah in Lebanon, the ‘Popular Mobilisation Forces’ in Iraq and the Houthis in Yemen), plunged Israel into its greatest security dilemma since the Fifth Middle East War in 1982, and even into the unconventional mode of the Sixth Middle East War, in which it had to fight on five or six fronts in three directions: south, north and east. Even the natural barrier of the Mediterranean Sea in the west is no longer a reliable security depth for Israel and it is forced to rely on the naval and air forces of the United States and other Western allies for collective defence.

Netanyahu can’t think with certainty about putting the brakes on the Gaza war because he has to please his far-right party members, otherwise his weak coalition government would collapse. Moreover, by maximising the consequences of the war, he is trying to alleviate his political, legal and security responsibilities for the great ‘national catastrophe’ and ‘national shame’ that has been dubbed ‘Israel’s 911’. But the war cannot go on forever; Israel must be a country with an army, not just an army in the name of the country. Netanyahu and his government, on the brink of a major struggle for the fate of the country and his personal future, are really at a ‘strategic crossroads’: to continue or to end? If he continues the war, will he end the Gaza war and start the third Lebanon war? This is because Israel is constantly exposed to Hezbollah attacks, which are increasing in intensity.

In recent days, senior Israeli officials have signalled an end to the Gaza war. On 9 November, Defence Minister Galant said that after 11 months of liquidation, Hamas’ “military organisation” in Gaza no longer existed and that conditions were ripe for a temporary ceasefire, but that the window had closed. Earlier, the Israeli military said it had essentially eliminated some 20,000 Hamas militants and ‘targeted’ a number of Hamas leaders, including the deliberate choice of the Iranian capital Tehran to get rid of Ismail Haniyeh. Objectively speaking, Hamas has indeed suffered a major disaster and is now forced to resort to guerrilla warfare.

Over the past few months, accusations from US political and military circles about the escalation and expansion of the Palestinian-Israeli conflict and war have become more and more explicit and focused on Netanyahu, in particular his continued obstruction and sabotage of the ceasefire negotiations and his proposal to take control of the Philadelphia Corridor between Gaza and Egypt and the ‘Nechalim Corridor’ separating the north and south of Gaza, which is the only way for the US military and political establishment to control the ceasefire talks and ceasefire negotiations. The question is whether such accusations and pressure should be made public. The Israeli negotiating team also warned Netanyahu that he could ‘destroy the agreement and thus bring about the end of the hostages’.

Netanyahu’s first and public demand for war on Gaza was clearly an impossible task: ‘de-Hamasisation, de-militarisation and de-radicalisation’. The so-called ‘trinity’ is not water without a source or a tree without roots, but a national liberation movement based on the long-standing illegal Israeli occupation, blended with Palestinian national hatred, legitimate rejection and even violent resistance. Unless the Palestinians are killed and expelled and the occupied territories are zeroed out or ‘Israelised’, Israel, like Sisyphus, will push the huge rolling stone of occupation up and down the mountainside, up and down, and the cycle will repeat itself, generation after generation paying an infinite price for expansion and occupation.

Netanyahu and many Israeli leaders know what the problem is, but due to a lack of strategic courage and historical responsibility, they do not act to end the illegal occupation and end the suffering and great evil it inflicts on Palestine, Lebanon, Syria and their peoples. Instead, by focusing on realistic short-term gains and the status quo, they seek to legitimise the occupation and, over time, to make it permanent. Through illegal occupation, social Darwinism and the application of the law of the jungle, they seek to create a fait accompli and, ultimately, to make themselves the rightful owners by permanently plundering the land of others.

After King David captured the capital of the Jebusites some 3,000 years ago, the Israelites renamed it Jerusalem and described it as the nation’s ancient capital and spiritual home forever, making no mention of the previous 1,000 to 2,000 years of the Jebusites’ founding history and ignoring a series of indelible facts of history: Some 2,000 years after the Romans destroyed the Jewish Temple and expelled the Israelites in 135 AD, Israel is no longer the dominant indigenous people of Palestine; since 638 AD, when the expeditionary forces of Omar, the second caliph of the Arab empire, captured Jerusalem from Eastern Rome, Jerusalem has been controlled and ruled by Palestinian Arabs or Muslims throughout its long 1329-year history, except for the Christian crusaders of the 11th-12th centuries, who controlled it for nearly a hundred years, until it was captured from the Jordanians by Israel in 1967.

The root causes of this widespread outbreak of the Palestinian-Israeli conflict are Israel’s unending occupation and ‘de-Palestinianisation’, the continued blockade of the Gaza Strip with the connivance of the bipartisan US government, the continued encroachment on Palestinian lands in the West Bank, and even the intensification of its claim to the Al-Aqsa Mosque in East Jerusalem. The rise of the ‘axis of resistance’ and the multiple attacks on Israel are also a consequence of the Gaza conflict and the suffering of the Palestinian people.

It is clear that the logical choice is to address the symptoms and root causes or to stop the boil or put out the fire. The only way out of Israel’s national crisis is to end the military siege of Gaza as soon as possible so that the attacks of the ‘axis of resistance’ will stop. However, if a long-term solution to the Palestinian-Israeli conflict is to be found and if Israel’s peace, security, development and prosperity are to be maintained, the principle of ‘land for peace’ must be applied without compromise and the issue of the return of the occupied Arab territories must be resolved as a single package, including the Gaza Strip, the West Bank and East Jerusalem, as well as the Syrian and Lebanese Golan Heights. This includes the Syrian and Lebanese Golan Heights.

If the Israeli government, headed by Netanyahu, launches a large-scale invasion of the north and a new war in Lebanon for its own selfish purposes, Israel will be plunged into a catastrophe of unspeakable proportions and it will be difficult for the current government to give an honourable account to the history of the country and the nation.

*Prof. Ma, Dean of the Institute of Studies for the Mediterranean Rim (ISMR ), Zhejiang International Studies University (Hangzhou). He knows the world affairs well, especially the Islamic and Middle East politics. He has worked for many years as a senior Xinhua correspondent in Kuwait, Palestine and Iraq.

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Macroeconomic consequences of asymmetric UAV attacks in Russia

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

A Broader Context That Cannot Be Ignored

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

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

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

Why Egypt?

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

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

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

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

Who Was Behind the Attack? Open Scenarios

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

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

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

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

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

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

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

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

The Messages Behind the Attack

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

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

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

Egypt’s Official Response

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

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

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

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

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

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

The Impact on Global Energy Markets

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

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

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

What Should Be Done to Prevent Similar Incidents?

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

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

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

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

Conclusion

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

References:

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

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

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

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

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Rising populist parties in Europe and liberalism

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

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

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

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

Why?

Because of this:

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

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

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

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

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