Opinion
Somaliland hailed its port deal with Ethiopia as historic: Why Somalia’s concerns grow?
Aweke Getahun, Senior News Editor at Ethiopian News Agency
Somaliland, a self-declared autonomous state in the Horn of Africa, recently inked a port agreement with Ethiopia, a landlocked nation that has long pushed for access to the sea. The agreement is regarded as an important achievement for Somaliland, which has had difficulty luring in outside capital and international recognition. Ethiopia now has much-needed access to the sea and the chance to grow its commercial and economic connections throughout the region, thanks to the agreement. Others are excited by the two parties’ recent action, which might have a significant effect on the political and economic climate of the area. Prime Minister Abiy Ahmed and President Muse Bihi Abdi of the breakaway nation of Somaliland inked the first agreement in the Ethiopian capital, Addis Ababa. The basis of the memorandum of agreement was the leasing of 20 kilometers (12 miles) of Somaliland’s coastline to Ethiopia, a landlocked country. In return, Somaliland would be granted official status as a sovereign state and shares in Ethiopian Airlines, the main airline of its neighbor. The agreement may also have an impact on the regional power structure. Ethiopia is a regional superpower, and other nations in the Horn of Africa may view its growing influence as an imminent threat, which might spark more rivalry and perhaps hostilities.
Somaliland’s quest for statehood
The port agreement with Ethiopia has been warmly received by the Somaliland administration, which has hailed it as “historic” and sees it as a significant chance to advance political cooperation between Ethiopia and Somaliland, raise living standards, and strengthen the region’s economy. The leadership of Somaliland has also conveyed optimism that the agreement will ultimately result in the worldwide acknowledgement of Somaliland’s independence. Both parties characterize the development as a significant diplomatic move. Considering itself a statement of purpose, the Memorandum of Understanding between Ethiopia and Somaliland has the potential to become a legally binding agreement. The deal is considered to be a component of Somaliland’s three-decade-long effort to gain acceptance of its claim to independence. Ethiopia will be the first country to “extend international recognition for our country, although this has not been confirmed by Addis Ababa,” according to Somaliland President Muse Bihi Abdi, in exchange for sea access. Through the agreement, Ethiopia will have access to a dependable, long-term naval base and commercial marine services in the Gulf of Aden. However, Somalia considers Somaliland to be a part of its territory, and it has responded strongly to the MoU.
Despite a lack of recognition, Somaliland has managed to set up a rather stable and efficient government with its own constitution, judicial system, and security forces. However, the historic deal has shocked the area and infuriated Somalia, which sees it as an aggressive infringement on its sovereignty. It is expected that Ethiopia, a significant regional actor, has given Somaliland’s independence significant support with the port agreement. This could persuade other nations in the area to acknowledge Somaliland’s independence or, at the very least, interact with it as a distinct entity. The agreement may be viewed as a provocation by the Somali government and other regional actors, according to some analysts, who claim that this might lead to more instability in the area. Additionally, terrorist groups like al-Shabaab that operate in the area may strike the port and its related infrastructure. There is a lengthy shoreline on the Gulf of Aden in Somaliland, a 4.5 million-person former British protectorate. It has its own currency, passports, and government, but it is impoverished and isolated since its bid for statehood has not been accepted globally.
Ethiopia’s aspiration for port access
Ethiopia, a landlocked nation in the Horn of Africa, has long desired to improve its maritime connections. The nation has historical links to the region and has a lengthy border with Somaliland. However, the Somali government, which considers Somaliland’s claim to independence to be fraudulent, has resisted its past attempts to create a port in Somaliland. Following Somalia’s complaints, Ethiopia stated after signing the port agreement that its relationship with Somaliland had not violated any laws. Addis Ababa defended the pact, claiming that other nations have made deals with Somaliland in the past and that it “will affect no party,” despite the government in Mogadishu protesting the accord and pleading with the international community to support it. Ethiopia’s Prime Minister, Abiy Ahmed, has previously described sea access as an existential issue for his country. In Ethiopia, for much of 2023, the government stressed the economic need for a seaport and even subtly hinted at possibly invading Eritrea for access to the Red Sea. “This has now been agreed upon with our Somaliland brothers, and a MoU [memorandum of understanding] has been signed,” Pm. Abiy said at the signing ceremony with Somaliland President Muse Bihi Abdi in the Ethiopian capital, Addis Ababa. The Prime Minister’s office described the deal as “historic,” adding that it “shall pave the way to realise the aspiration of Ethiopia to secure access to the sea and diversify its access to seaports, which strengthens their security, economic, and political partnership.
The port agreement has been well received by the Ethiopian government, which sees it as an important milestone. It is anticipated that the port’s earnings would strengthen Somaliland’s economy and supply much-needed capital for infrastructural improvements. Additionally, thousands of jobs for Ethiopian and Somaliland residents are anticipated as a result of the agreement. In an effort to develop the port and make it a profitable commercial gateway for its people, Ethiopia purchased shares in Berbera Port in 2017 as part of an agreement with the Emirati logistics management company DP World. But as the Somaliland authorities allegedly stated at the time, “Ethiopia failed to meet the conditions needed to acquire the stake before the deadline,” hence this plan fell through in 2022. Ethiopia was unable to gain access to the sea when Eritrea seceded in the early 1990s. With more than 120 million people, it is the most populous landlocked country in the world. Ethiopia has been utilizing the port in nearby Djibouti for the great majority of its imports and exports up until this point, but since the mid-2000s, Ethiopia has been looking at other options in Sudan, Somaliland, and Kenya due to the billions of dollars in port fees that Djibouti is allegedly charging Ethiopia yearly. Following the Eritrean War of Independence, which lasted from 1961 to 1991, Ethiopia lost its ports on the Red Sea early in the 1990s. Since that time, Ethiopia and Eritrea have separated to become their own independent countries. Ethiopia lost direct access to the Red Sea and important ports as a result of the split.
Somalia’s strong response to the port deal: Calls for an urgent IGAD meeting
The Somali government is adamantly against the port agreement, claiming it compromises both Somalia’s sovereignty and the status of Somaliland as recognized by the international community. It has demanded that the world community denounce the agreement. After calling an emergency cabinet meeting to discuss the agreement, Somali President Hassan Sheikh Mohamud declared, “As a government, we have condemned and rejected the illegal infringement of Ethiopia on our national sovereignty and territorial integrity” in a statement on X. “Nobody can sign away an inch of Somalia, nor will they.” Viewing the port agreement as a breach of Somali authority and a danger to regional stability, the Somali government has been outspoken in its criticism of it. A threat to severe diplomatic ties has been made by the Somali government with Ethiopia, which has warned of potential military action against both Ethiopia and Somaliland, It said it was recalling its ambassador to Ethiopia. The government said the agreement was “null and void” and a violation of its sovereignty.
In a press release, it stated that it “considers this action an aggression and… is an impediment to the good neighborliness, peace, and stability of the region, which is already struggling with many challenges.” Additionally, Somalia declared its desire for intervention on the matter from regional and global bodies such as the UN Security Council, IGAD, and the African Union. The sensitivity of the matter and the need to avoid inciting tensions in the area are perhaps the reasons why the international community has been mostly mute on the port agreement thus far. According to some observers, in order to settle the conflict between Somaliland and the Somali government, the international community would eventually need to become involved. Ismail Omar Guelleh, the chair of the IGAD and president of Djibouti, has invited the member nations of the East African members to an extraordinary summit in Uganda next week to discuss the recent dispute between Somalia and Ethiopia.
In an effort to find a peaceful solution, the African Union and other international partners were also invited to address the Ethiopia-Somalia conflict. Following an agreement on sea access, Dr. Workneh Gebeyehu, the executive secretary of IGAD, also urged Somalia and Ethiopia to work together. The IGAD acknowledged the possible consequences for regional stability and voiced “deep concern regarding recent developments.” He also stated that he is closely following the situation. According to IGAD, it is unwavering in its dedication to advancing regional integration, collaboration, peace, and stability. However, not every response from the Somali administration has been unfavorable. Politicians and academics have contended that the agreement would be advantageous for Somalia, as it might compel the country’s administration to make improvements to its port facilities and financial allocations for economic change.
To sum up, the port agreement between Ethiopia and Somaliland is a noteworthy milestone in the Horn of Africa that might have regional effects in terms of politics, economy, and security. The agreement has sparked worries about its possible effects on regional stability and the ongoing tensions between Somaliland and the Somali government, even if it is anticipated to have a major positive impact on Ethiopia and Somaliland. It is unclear how the arrangement will be received by the international community in light of the ongoing developments and if more stability or tension will result in the area in the end. The agreement is an important step towards ensuring Ethiopia’s access to the sea, which has long been a top strategic goal for the nation. The port agreement between Ethiopia and Somaliland is a noteworthy advancement for the area, with possible ramifications for the economy, politics, and security. The agreement has raised worries about its possible effects on Somali sovereignty and regional stability, even if it is anticipated to have significant positive effects for both Somaliland and Ethiopia. The Horn of Africa is becoming a complicated area with shifting political and economic forces, and navigating these changes will provide hurdles, as seen by the Somali government’s reactions to the arrangement. Analysts thus say that in order to settle the diplomatic issue between Somaliland and the Somali government as well as Ethiopia, the international community may eventually need to step in.
Opinion
Macroeconomic consequences of asymmetric UAV attacks in Russia
Today, the nature of asymmetric threats is undergoing a profound transformation, with their focus shifting increasingly toward economic centers. By mid-2026, the nature of asymmetric warfare within the borders of the Russian Federation entered a qualitatively new and critical phase.
An analysis of the Ukrainian unmanned aerial vehicle (UAV) strikes carried out in July 2026 reveals a deliberate shift in targeting. Moving beyond military installations and fuel-energy infrastructure, these attacks directly targeted civilian logistics networks and critical nodes of the macroeconomic infrastructure.
The primary objective of this strategic shift is to deplete the country’s internal resources, induce insurmountable disruptions in supply chains, and exert intense psychological pressure on the civilian population.
Large-scale, coordinated strikes on the distribution centers of Wildberries—Russia’s largest e-commerce platform and part of the RVB joint venture (formed by the 2024 merger of Wildberries and Russ)—became the symbol of this new phase of home-front vulnerability. The geographic scope of these attacks, spanning an unprecedented area from the Northwestern Federal District to Southern Russia and Crimea, exposed critical gaps in national industrial risk insurance mechanisms. Furthermore, this situation sparked severe legal disputes between platform economy giants and small businesses, compelling immediate intervention from both corporate executives and senior state officials.
Tracing the multi-layered consequences of the kinetic impacts resulting from these July attacks on the state’s digital and physical economy will shape the new architecture of civilian sector security.
The zenith of the logistical terror waged by Ukraine was recorded on the night of July 24, 2026, marking the most technically complex UAV attack inflicted on Russian Federation territory since the beginning of the year. According to data from the Ministry of Defense of the Russian Federation, domestic air defense systems detected and destroyed 571 fixed-wing Ukrainian UAVs that night.
Two points have become exceptionally critical here: saturating radar fields and the military “swarm” effect. In short, this event is the clearest indication that the enemy has transitioned to a tactic of overwhelming radar systems. At the same time, the “swarm” effect generated across a vast geographic expanse aims to rapidly deplete the ammunition of anti-aircraft missile systems and expose air defense positions deep behind the front lines.
The breadth of the targeted geography attests to the unprecedented scale of the operation. UAVs were neutralized over the Belgorod, Bryansk, Kaluga, Kursk, Leningrad, Novgorod, Oryol, Pskov, Ryazan, Smolensk, Tver, Tula, and Vladimir regions, as well as over Moscow, Krasnodar, the Republic of Crimea, and the waters of the Azov and Black Seas.
Such a dense dispersion of targets across a vast territory points to an attempt to paralyze transportation and logistics arteries within Russia’s European landmass.
In parallel with the mass deployment of UAVs, missile strikes were also conducted against civilian industrial enterprises. During the same period, a missile attack on a local enterprise in the Fileyka district of Kirov resulted in outright catastrophe, leaving 6 people dead and 32 employees injured with varying degrees of severity.
Following the incident, Regional Governor Aleksandr Sokolov stated that the situation required not only the evacuation of the wounded, but also large-scale interventions such as restoring water and power supplies and auditing the security of neighboring settlements. This combined approach—employing inexpensive kamikaze drones to degrade air defenses followed immediately by missile strikes on unprotected industrial zones—presents an entirely new threat paradigm for the civilian economy.
Systematic and sequential attacks directed at the facilities of a single commercial entity completely eliminate the possibility of coincidence. The strategic, macroeconomic, and psychological factors turning civilian commercial warehouses into critical vulnerabilities for an entire state rest upon four pillars:
- Role as the central circulatory system of domestic trade: Wildberries plays a critical role in the architecture of the modern Russian economy, connecting millions of consumers with tens of thousands of SMEs. Damage to distribution centers severe supply chains, triggering localized shortages of essential consumer goods and regional inflationary spikes. The primary goal is to destabilize the domestic market and create an artificial supply vacuum.
- Immense facility footprints and defense complexity: Spanning hundreds of thousands of square meters across the nation, these hangars constitute massive targets with high radar contrast. Unlike military bases, these commercial warehouses cannot possess their own air defense systems; placing every such facility under an air defense umbrella is physically impossible without compromising frontline systems.
- Social and psychological impact: In the eyes of the public, logistics centers symbolize daily economic stability. Black plumes of smoke visible from miles away, massive fires, and civilian casualties represent a hybrid terror tactic designed to transport an atmosphere of fear deep into peaceful cities and shake the internal socio-political climate.
- Magnified radius of economic impact: Inventory consumed by flames in these warehouses generally consists of stock purchased by merchants on credit. The destruction of commodity inventories holds the potential to cause mass vendor bankruptcies, bank loan defaults, and cascading layoffs across small businesses.
The events of July 2026 mark an irreversible shift in the threat landscape facing Russian commerce and macroeconomics. Attacks directed at Wildberries hubs in regions such as St. Petersburg, Moscow, and Tambov exposed the utter vulnerability of civilian logistics infrastructure.
Deploying relatively inexpensive unmanned aerial vehicles, the enemy is capable of inflicting tens of billions of rubles in direct damage, paralyzing the supply of essential goods, and triggering an acute social crisis in which hundreds of thousands of entrepreneurs face the threat of bankruptcy. According to Russian experts, the total cost of a single fire—similar to the Kotovsk incident on July 18—can range between 50 and 100 billion Rubles ($630 million – $1.2 billion USD).
Despite its massive capital reserves, corporate business was caught unprepared for military threats. The medium-term survival of the e-commerce economy depends on the state and the private sector uniting to engineer unprecedented systemic solutions. Establishing compensation funds and introducing mandatory risk-distribution mechanisms are critical steps that must be taken.
Logistics hubs will remain open targets unless a “state program for subsidized reinsurance of military risks” is established for the critical nodes of the civilian economy. In the future, it will not suffice for large enterprises merely to pour capital into the physical protection of infrastructure; they must also deeply decentralize their logistics networks to prevent the concentration of goods and capital at single points of failure.
Opinion
Egypt Under Fire: What Does the Damietta Strike Mean for Global Energy Markets?
Dr. Ahmed Moustafa, Director & Founder, Asia Center for Studies & Translation, Egypt
For the first time since successive waves of escalation between Washington and Tehran began in recent months, an Egyptian liquefied natural gas (LNG) export facility has become a direct target.
In the early hours of Wednesday, 29 July 2026, at least one drone struck the floating storage unit Energos Winter, owned and operated by a U.S. company and sailing under the Marshall Islands flag, while it was moored at the Mediterranean port of Damietta. The impact ignited a fire that spread to a neighboring LNG carrier, GasLog Salem. Egyptian authorities confirmed that the blaze was brought under control without any reported casualties, while no group had claimed responsibility for the attack at the time of writing.

A Broader Context That Cannot Be Ignored
The incident did not occur in a vacuum. It came only hours after the United States Central Command (CENTCOM) announced that it had conducted joint strikes with Saudi forces targeting armed factions in Iraq accused of launching drone attacks against Saudi oil facilities. Tehran responded by warning against a “miscalculation,” at a time when the Middle East is still grappling with the repercussions of an earlier round of escalation that erupted on 8 July, when U.S. forces carried out strikes inside Iranian territory following an attack on a commercial vessel in the Strait of Hormuz. Iran retaliated with attacks targeting U.S. military bases in Bahrain, Jordan, Qatar, Kuwait, the United Arab Emirates, and the Sultanate of Oman.
Against this tense backdrop, Damietta appears to represent yet another link in the chain of regional escalation—but an exceptional one. For decades, Egypt has sought to keep itself removed from direct military polarization in the region, unlike several Gulf states that have increasingly become arenas of open confrontation.
At the same time, this interpretation does not entirely rule out the possibility of an indirect Israeli role, driven by hostility toward Egypt’s growing diplomatic influence in the Palestinian and Gaza files. Cairo has remained committed to advancing the two-state solution and to implementing the second and third phases of the peace roadmap agreed upon following the Sharm El-Sheikh Peace Summit last October. The Israeli government, led by Benjamin Netanyahu, has sought to obstruct these efforts. Netanyahu, who is the subject of arrest warrants issued by the International Criminal Court, is widely accused of bearing responsibility for committing genocide that, according to Palestinian authorities, have resulted in the deaths of approximately 73,000 Palestinian civilians since 7 October 2023.
Why Egypt?
Over the past two years, Egypt has steadily strengthened its position as a regional hub for liquefying and re-exporting natural gas. This growing role has been supported by its two LNG plants at Idku and Damietta, in addition to a network of pipelines linking the country with Israel and Cyprus.
This infrastructure—unmatched elsewhere in the Eastern Mediterranean in terms of combined liquefaction capacity and direct access to European and global markets—has transformed Damietta and Idku into critical gateways for Eastern Mediterranean gas, including increasing volumes of Israeli/Stolen Palestinian natural gas liquefied and re-exported through Egyptian facilities.
According to local reports, the Energos Winter alone was supplying approximately 450 million cubic feet of gas per day to Egypt’s national grid and was preparing to receive four additional cargoes during August.
This expanding role gives any attack on Egypt’s gas infrastructure significance far beyond the immediate incident itself. It threatens not only Egypt’s domestic energy supplies but also a supply chain upon which Europe has increasingly relied as part of its strategy to diversify away from Russian natural gas.
Who Was Behind the Attack? Open Scenarios
At the time of writing, no organization had officially claimed responsibility, leaving several possible interpretations.
The first scenario cautions against prematurely attributing responsibility to Iran or its regional allies. It argues that the ambiguity surrounding the incident—and the absence of any claim of responsibility—may itself be deliberate, allowing whichever actor carried out the attack to undermine Egyptian stability without incurring immediate political costs.
This possibility includes actors competing over Eastern Mediterranean energy routes, as well as local or transnational groups pursuing agendas unrelated to the U.S.-Iran confrontation. Egyptian officials themselves have adopted a notably cautious approach. Egypt’s Minister of Information warned against “rushing to accuse any party,” while a former official suggested that “certain actors are seeking to drag Egypt into the conflict,” implying that the attack may have been designed precisely to draw Cairo into a confrontation it has consistently sought to avoid.
A second scenario, Israeli Involvement or the Involvement of Israel’s Allies
This, in itself, remains a serious hypothesis that is reportedly being discussed in undisclosed investigative circles. The prevailing analyses, supported by pro-Israeli and pro-American narratives, have largely centered on suspicions directed at Iran or Iran-aligned actors within the context of the ongoing conflict, rather than at Tel Aviv. This is partly because Israel maintains an energy partnership with Egypt, making any attack on an Egyptian export terminal potentially detrimental to its own natural gas interests.
Nevertheless, this hypothesis—like all others—must ultimately be assessed in light of the findings of the official investigations, which are still underway. It is worth recalling, however, that repeated warnings have been voiced regarding the visits of Israeli Prime Minister Benjamin Netanyahu to Washington, as such visits have often been followed by heightened regional instability, as was argued after developments last December. According to this line of analysis, Netanyahu seeks to prolong the conflict with Iran in order to strengthen his domestic political position, secure his continuation in office, and advance Israel’s long-term strategic objective of neutralizing Iran and carrying out “Greater Israel.”
Within this framework, some analysts argue that there are broader efforts to weaken both Egypt and Türkey. They cite remarks attributed to a former Mossad operative during appearances on Israeli television, alleging that such a strategy would also serve to divert international attention away from the Gaza file and the question of Palestinian statehood—an issue on which Egypt has intensified its diplomatic efforts in recent days. According to this interpretation, creating indirect pressure on Egypt—the region’s most stable and secure state—could be viewed as a means of drawing Cairo into a wider regional confrontation.
A third scenario links the incident directly to the broader U.S.-Iran escalation. According to the article, The New York Times, citing two Iranian sources, reported that the attack may have been intended as a signal that global shipping and energy supplies could face deeper disruptions should Tehran or its allies choose to escalate further. The sources, however, did not identify the perpetrators or specify the launch point of the drone.
The Messages Behind the Attack
Regardless of who carried out the operation, the choice of target sends several important signals. An attack on what the article describes as the first American-owned energy asset on Egyptian soil would convey a message to Washington that not only its military installations in the Gulf, but also its economic footprint across the region, has become increasingly vulnerable.
For Egypt, which has consistently pursued a policy of strategic restraint and regional neutrality, the incident serves as a reminder that its geographic position—adjacent to some of the world’s most important energy and maritime corridors—no longer guarantees insulation from the conflicts unfolding around it.
For global markets, the attack suggests that the geographic scope of potential disruption is expanding beyond the Strait of Hormuz and the Arabian Gulf into the Eastern Mediterranean, increasing insurance premiums for shipping and critical energy infrastructure in a region long regarded as comparatively secure.
Egypt’s Official Response
The Egyptian government handled the incident with considerable caution and procedural professionalism, treating it primarily as a crisis-management operation rather than a political event.
The Cabinet confirmed that the fire had been caused by a drone attack without attributing responsibility to any specific party, emphasizing that investigations were continuing “to take all necessary measures to safeguard Egypt’s interests and national security.”
Prime Minister Mostafa Madbouly described the response as a test of the state’s crisis-management capabilities, praising emergency teams for successfully moving the burning vessels away from the port, thereby preventing what could have become a far larger disaster.
President Abdel Fattah El-Sisi addressed the incident publicly for the first time during a telephone conversation with Spanish Prime Minister Pedro Sánchez. During the call, he confirmed that the competent authorities were conducting a comprehensive investigation, warned of the dangers posed by the escalating regional situation, and stressed the importance of cooperation between Egypt and the international community to contain the crisis while adhering to peaceful solutions.
This measured diplomatic approach—avoiding direct accusations while emphasizing de-escalation—reflects Cairo’s determination not to be drawn into a broader regional confrontation despite having come under direct attack on its own territory.
Several Gulf states also expressed their full solidarity with Egypt and voiced support for its efforts to safeguard its national security and sovereignty.
The Impact on Global Energy Markets
The Damietta incident occurred at a time when global energy markets were already under considerable strain. Brent crude had been hovering around US$90 per barrel following the escalation of 8 July, while the European Title Transfer Facility (TTF) benchmark for natural gas had climbed above US$700 per 1,000 cubic meters for the first time since March.
Any additional disruption affecting an Egyptian LNG export terminal risks reinforcing this upward trend. Europe has increasingly relied on Egyptian liquefied natural gas as part of its broader strategy to diversify supplies away from Russian pipeline gas. Consequently, even a temporary interruption to Egypt’s export infrastructure could heighten market concerns over supply security.
The incident also adds to the geopolitical risk premium already factored into insurance costs for vessels operating in the Eastern Mediterranean. Higher perceived risks could translate into increased shipping and insurance costs for LNG carriers throughout the region, even if subsequent investigations conclude that the attack was an isolated event unlikely to be repeated.
What Should Be Done to Prevent Similar Incidents?
First, Egypt should further strengthen its short-range air defense capabilities and counter-drone systems around strategic energy installations along its Mediterranean coastline. This includes deploying advanced early-warning radar networks and cost-effective interception systems capable of neutralizing small unmanned aerial vehicles before they reach critical infrastructure.
Second, broader regional intelligence-sharing mechanisms should be expanded among Egypt and neighboring states—including Cyprus, Greece, and Türkiye—in recognition of the increasingly interconnected nature of Eastern Mediterranean gas infrastructure and the shared strategic importance of safeguarding regional energy corridors.
Third, given that the targeted floating storage unit is owned by a U.S. company, Washington should contribute to financing and modernizing the protection of such critical infrastructure rather than limiting its response to statements indicating that it is merely “monitoring the situation,” as the article characterizes the U.S. reaction.
Finally—and perhaps most importantly—reducing the broader cycle of regional escalation between Washington and Tehran remains the only sustainable guarantee against similar incidents in the future. Any purely technical or localized security measures can mitigate immediate risks but cannot eliminate them so long as the underlying geopolitical drivers of confrontation remain unresolved.
Conclusion
The Damietta incident serves as a stark reminder that geographic neutrality alone is no longer sufficient to shield a country that has become a pivotal node in the global energy network.
References:
1- https://www.bbc.com/news/articles/c39ez3klwmro
4- https://www.nytimes.com/2026/07/29/world/middleeast/ships-drone-strike-egypt.html
Opinion
Rising populist parties in Europe and liberalism
Leon Trotsky, one of the foremost leaders of the October Revolution, defined fascism as the totalitarian organization of society by monopoly capital. Magnates of large-scale monopoly capital are acutely aware that their profits cannot be safeguarded in the absence of authoritarian political power. Thus, fascism finds its bedrock of support among capitalist forces, the grand bourgeoisie, monopoly capital circles, and major landowners. We are all too familiar with the calamities fascism wrought upon the world in the era preceding the Second World War.
The post–World War II era is often commemorated as the golden age of capitalism—a period characterized by robust growth rates and low unemployment. Real wages climbed, social rights expanded, demands for a welfare state remained vibrant, and the pursuit of a social state yielded tangible results. This era ultimately met its demise in the 1970s, undone by shifts in the regime of accumulation and structural economic crises.
Today, across Europe, political parties that could virtually be characterized as the direct successors to pre-WWII fascist movements are consolidating their electoral gains. Germany, France, and Italy serve as quintessential examples. These parties weaponize poverty, unemployment, and anti-foreigner, anti-immigrant, anti-Muslim, and anti-Middle Eastern sentiments, while capitalizing on the incompetence of traditional center-right and center-left parties and taking a deeply Eurosceptic, critical stance toward the European Union. They employ caustic rhetoric against the political elites who have dominated governance for decades. Receiving endorsement from both US President Trump and Russian leader Putin, they draw substantial support simultaneously from working-class constituencies—traditionally the bedrock of the left—and from grand capital circles. While monopoly capital quietly pats these populist movements on the back, it simultaneously winks at liberal-democratic and increasingly indistinguishable social-democratic parties that champion unbridled capitalism and aggressive liberalism. Beyond France and Germany, examples abound from Italy to the United Kingdom…
The interests of grand capital, which back populist regimes and advocate authoritarian governance, also champion localization. For the erosion of the national, the public, and the collective—alongside the attenuation of the central state and the elevation of the local—works decisively to the advantage of big capital.
Why?
Because of this:
Under liberalism, the state does not regulate the market; rather, the market regulates, directs, and subdues both the state and society. In a liberal order, the state is expected to act on behalf of capital and in favor of the market—intervening in politics, society, and the law, and enacting statutory frameworks strictly to this end. The state is tasked with engineering legal and institutional arrangements for the market’s account and benefit. Society is reduced to a market-society, wherein the citizen is reimagined as a consumer, a client, and an entrepreneur. Since competition is elevated as the supreme imperative, citizens themselves must become entrepreneurial and competitive—a posture the state actively promotes and incentivizes.
According to liberals, the state bears no obligation to shield its citizens from the pitiless mechanics of the market or the ferocity of unchecked capitalism. On the contrary, the state demands and encourages that citizens establish themselves as entrepreneurial actors within the market arena. Consequently, the state aligns itself with capital, operating at its beck and call. Hence, liberalism harbors an innate preference for unorganized, non-unionized, cheap labor. Wages are suppressed; agricultural subsidies are gutted to a minimum; and strikes are banned on the flimsiest of pretexts.
Because liberalism insists that the state be sculpted, organized, and driven according to market demands—allowing the market to command and direct the state—the liberal vision of the nexus between politics and economics, as well as politics and law, is deeply fractured. In their worldview, law must operate exclusively to the advantage of capital, acting as the vigilant sentinel for the inviolability of property rights. It must dismantle every obstacle standing in the way of free trade, unbridled competition, and the free market, while swiftly and severely penalizing any force that dares to impede them. To conform to the expectations and demands of capital: this is the primary imperative required of the law.
In sum, through its championing of identity politics, its reduction of the citizen to a mere client, and its liquidation of the state’s social character in order to place public power at the disposal of capital, liberalism stands fundamentally opposed to the social, the public, and the national. This is a truth that must be firmly impressed upon left-liberals, nationalist-liberals, and conservative-liberals alike.
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