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Modi’s new ‘coalition’ cabinet signals policy continuity

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Dr. Duygu Çağla Bayram

The results of India’s election, which came in on the evening of Tuesday 4 June after the votes had been counted, showed that Prime Minister Narendra Modi had surprisingly secured a third term in office. The surprise was not that Modi had secured a third term; that was expected. The surprise was that he did it in such a way that he would need coalition partners to form a third term government. The 73-year-old Modi won three consecutive terms, matching Jawaharlal Nehru’s record as the first prime minister, but despite his party’s “landslide” victories in the first two terms, his third term – despite even greater expectations – fell far short of the 272-seat threshold for a clear majority, leaving Modi and his team frustrated. Although Modi had announced on his X platform on the day of the vote count that “we have won a historic/major victory”, this was not the case. While his party, the BJP, secured 240 seats, the National Democratic Alliance (NDA), which he leads, retained the right to form a government with 53 seats. However, this will be Modi’s first experience of leading a coalition government. Modi’s party, the BJP, has lost ground and will now have to rely on its partners in the National Democratic Alliance, in particular the Janata Dal (United) Party and the Telugu Desam Party (TDP). Nevertheless, despite the setbacks, the BJP won 36.56 per cent of the national vote, only one per cent less than in the 2019 elections. In any case, it must be said at the outset that these election results in India are important in demonstrating democratic vibrancy against the possibility of the country drifting towards one-party rule.

The fact that the opposition almost doubled its vote share surprised everyone in India, everyone outside India and even the opposition itself. The opposition alliance INDIA, led by Rahul Gandhi’s Congress party, won 232 seats, 99 of which were won by the Congress, a sharp increase from 2019, when the Congress and its allies won only 52 seats in 91 constituencies. Rahul Gandhi, 53, heir to the Nehru-Gandhi political dynasty, appears to have a new chance to revive a party and family name that has long been at the centre of politics in the world’s largest democracy, unlike in 2019, when he suffered a heavy defeat at the hands of the BJP and resigned as Congress president, a post he was appointed to in 2017. Like his father Rajiv Gandhi, a commercial pilot who was forced into politics after his mother Indira Gandhi, a former prime minister, was shot dead by two bodyguards, Rahul Gandhi was originally a reluctant politician. The legacy of the assassination of his grandmother Indira Gandhi and father Rajiv Gandhi, both prime ministers, forces Rahul Gandhi and his Italian-born mother Sonia Gandhi, a senior Congress leader, to live under tight security. So it remains to be seen how and whether this opportunity will be used by the Congress or by the opposition, which in general does not seem to show much promise… In fact, the Congress, although doing much better than expected, is second only to the BJP and Rahul Gandhi is not seen as an alternative to Modi as prime minister. It is important to recognise that Modi is a hugely popular, globally recognised, oratorically powerful leader and, more importantly, at the helm of a huge party with resources, connections and influence across Indian society. “If there is one thing missing in my life, it is a good opposition,” Modi told a news channel during the election campaign. So a strong opposition seems to be on the cards, but only time will tell whether it will be a “good opposition” or not.

First, it is clear that the surprise election results – in an equation where the Congress and Rahul Gandhi mobilise in the name of secularism, equality, inclusiveness and liberal democracy – are an indication of dissatisfaction with the BJP on economic grounds such as unemployment and inflation, and also on grounds such as Hindu nationalist divisive harsh rhetoric. As a result, much has been written, drawn and said in this short time about Modi’s third term, i.e. the policies of the new government he will form with his coalition partners. There have been views that it will have an impact on domestic and foreign policy, and views that it will not. My view is that it will not have a direct impact, but there is a possibility of a very limited indirect constraint. We need some time to observe this. However, it is not very difficult to draw conclusions and make predictions, even if we look at the new cabinet. In the coalition government announced by Modi on Monday, you can see that the old guard of his party is at the top of the list and their important positions remain unchanged. The first thing I have to say is that 7 of the 71 ministers are women, two of them in the senior cabinet. This is still low for India, which has made efforts to bring women into politics… And the first thing to say about the previous sentence is that this is a clear signal of political continuity. Defence Minister Rajnath Singh, Home Minister Amit Shah, Transport Minister Nitin Gadkari, Finance Minister Nirmala Sitharaman and Foreign Secretary Subrahmanyam Jaishankar remain in their posts. All of them are BJP loyalists and all of them are names whose frequencies are very much in tune with Modi. Meanwhile, BJP president Jagat Prakash Nadda has been appointed health minister.

However, I would like to devote a separate section to Foreign Secretary S. Jaishankar, who is considered by many in the country to be a “jewel” whose popularity stems from the fact that he has made diplomacy an issue of interest to the common man. Although, as the election results show, foreign policy and diplomacy still do not hold much sway with Indians, I have to say that at least public awareness has begun to emerge. Jaishankar’s books The Indian Way and Why Bharat Matters have put forward a new diplomacy for India. At this point, much of the credit for replacing India’s old tradition of “non-alignment” with the formula of “multilateralism” goes to Jaishankar. The diplomatic rhetoric of Modi and his top aides is taking on a new tone, replacing earlier leftist, anti-colonialist references to ‘non-alignment’ with other terms such as ‘strategic autonomy’ and references to ‘Bharat’ instead of ‘India’. And, more importantly, Jaishankar’s “India is not Western, but it cannot be anti-Western” approach is receiving more praise. He was able to convince Prime Minister Modi, who was once banned from entering the US, that New Delhi could work with Washington, and over the past decade India has built a relationship with America that was once unimaginable. Jaishankar is a pragmatist: no rising power in the last 150 years has succeeded without the West, so India should work with it… I wrote a more detailed assessment of Jaishankar’s worldview in Harici about four months ago. Anyone interested can take a look.

Speaking of the Foreign Secretary, let us turn to foreign policy. The first thing to say is this: A BJP emboldened by the election results is likely to be more modest about its Hindu nationalist ideology and more pragmatic with its coalition partners. But when it comes to India’s foreign policy, strong nationalism is extremely popular beyond the BJP faithful, and it is difficult to see exactly where Modi’s worldview diverges from Hindu nationalism. Another problem: Elections in India are never fought primarily on foreign policy, but their results have consequences. That is, they can influence the policy-making process, the ideology and the worldview of the government in power. In the current situation, the question is whether the coalition partners will force the BJP to return to some semblance of normal parliamentary order, or whether they will instead exercise their power through direct negotiations with the BJP. If normal parliamentary order is restored, the BJP could face new and sustained scrutiny, for example, over controversial national security initiatives such as the Agnipath plan for military recruitment and major defence procurement deals with the US and other foreign suppliers. Budget and procurement decisions, for example, were largely avoided even during Modi’s first two terms and often became the focus of serious political wrangling over allegations of corruption or mismanagement. So Indian ministers and bureaucrats responsible for signing big deals, such as bold investments in defence or the ambitious trade and investment agreements needed to advance Modi’s ambitious agenda on the world stage, may need to think twice.

But foreign policy and national security are unlikely to be priorities for Modi’s coalition government; the BJP’s coalition partners are much more interested in regional and livelihood issues. The coalition leaders have also been given smaller ministries such as heavy industries, food processing and fisheries. The civil aviation ministry, however, belongs to 36-year-old Kinjarapu Ram Mohan Naidu of the TDP, the BJP’s biggest ally. The TDP, originally from Andhra Pradesh, is led by veteran politician Chandrababu Naidu, who began his political career in the Congress. And the next largest party, Bihar’s Janata Dal (United), is led by Nitish Kumar, who has a history of switching allegiance to the BJP to suit his own interests; he was one of the founding members of the opposition alliance that ran against Modi in this year’s elections, but switched sides just weeks before the polls. The point is that the BJP’s dominance in the cabinet far outweighs the need for policy continuity in a coalition government, but at the same time Modi is likely to have to build more consensus in this parliament. Incidentally, unlike the last two governments formed after the BJP won a majority, there are no Muslim MPs in the third term.

All in all, after a decade of stability and predictable politics, India seems to be drifting back into the uncertainty of coalition politics, but it can be predicted that this will be a minor uncertainty. Although the country has been ruled by the NDA coalition for the past 10 years, the ruling party has had an absolute majority on its own. The current NDA alliance will be different from previous ones as the BJP is limited to 240 seats. However, it is important to recognise that the significant reform agenda pursued by the Modi government, as well as the ambitious foreign policy outlook of the last decade, may encourage more parties to volunteer to support it, thus providing greater stability to the government. In the meantime, however, the victory of at least three independent candidates with separatist ideologies should not be overlooked. Two of them, Amritpal Singh and Sarabjeet Singh Khalsa, open supporters of the Khalistan ideology, won from Punjab, while the third, Kashmiri separatist Abdul Rashid Sheikh, popularly known as Engineer Rashid, was elected from Jammu and Kashmir. Amritpal Singh and Engineer Rashid won the elections from jails where they were detained for anti-India activities. The last time a separatist voice entered the Indian parliament was in 1999, when Simranjit Singh Mann was elected from Sangrur in Punjab. In short, the third victory of the Modi-led coalition is a parliamentary record in India, but the current situation calls for more compromise and responsible politics. It is worth noting that Mahatma Gandhi, who first introduced coalition politics in India’s pre-independence era, attributed his success to humility and courtesy.

Finally, India’s election results cannot be viewed through the prism of China and America, with whom India has a bipolar relationship:

One of the short-term consequences of Modi’s relative loss of power may be related to India’s troubled relationship with China. The long-awaited return of China’s ambassador to New Delhi in May seemed to signal that Beijing and New Delhi were ready to resume normalised relations after the Indian elections. Perhaps anticipating another landslide victory for Modi, China may have preferred to strike a deal to reduce bilateral tensions during his five-year term. At the same time, expecting a solid victory, Modi could have used his unchallenged political standing at home to gain an advantageous position in negotiations with Beijing. But if China now perceives that Modi is in a difficult political position, it may rethink its negotiating calculations and take a tougher line. Modi, in turn, may postpone any overtures to Beijing to avoid criticism from his domestic political rivals. In short, the difficult India-China relationship will continue to be difficult and the focus for India will continue to be on China.

India’s election results may also affect American and Western perceptions of India and Modi. In today’s murky world, America positions New Delhi as a natural strategic partner and counterweight to authoritarian China because of India’s democratic credentials. This is unlikely to change, at least under current circumstances. However, there already seems to be a section in the West that is stressing that the unpredictability of the Indian elections and the fact that Modi and the BJP, whose authoritarian tendencies have imposed increasingly serious political commitments on India, have been punished by the Indian electorate is proof that Indian democracy is alive and kicking, that it reduces the risk of the country sliding into autocracy and that it promises to change India for the better. While this is a typical case of “I change my mind when the facts change”, the China factor will remain the common denominator, at least for the foreseeable future.

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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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