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The Ceasefire Between Palestine and Israel: A Victory Without Any Winner

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On January 17, Hamas and Israel formally signed a ceasefire agreement reached two days earlier, which took effect on January 19. This marks the closest attempt to a successful ceasefire in the Middle East since Hamas launched the “Al-Aqsa Flood” operation, which triggered Israel’s intense retaliation and ignited the “Sixth Middle East War” over 460 days ago.

The international community widely welcomes the ceasefire between Palestine and Israel, and Yemen’s Houthi attacks on Israel are also expected to cease, the “Sixth Middle East War” may finally come to an end. However, the ceasefire remains a fragile prelude to peace. Without addressing the historical disputes between the two sides and implementing the “two-state solution,” every ceasefire is merely an interval before the next conflict or war.

According to reports, through multiple rounds of mediation by the United States, Qatar, and Egypt, Hamas and Israel reached a three-phase ceasefire agreement. The first phase, which started on January 19, will last 42 days and includes a complete and total ceasefire by both parties, the withdrawal of Israeli troops from densely populated areas in the Gaza Strip, the release of 33 detainees by Hamas in exchange for the release of hundreds of Palestinians detained by Israel, and the allowance of large-scale humanitarian aid into Gaza.

The details of the second and third phases of the agreement are to be disclosed after the implementation of the first phase. These include permanent ceasefire negotiations, the return of detained personnel’s remains by Hamas, and the initiation of large-scale reconstruction in the Gaza Strip.

Despite the United States, Qatar, and Egypt guaranteeing and overseeing the ceasefire agreement, the implementation of the second and third phases depends on the execution of the first phase. Israel has requested the right to veto the list of Palestinian detainees to be released, and Israel’s security cabinet has delayed approving the first-phase agreement. Additionally, Israel’s far-right security minister has threatened to resign. These developments underscore a severe lack of mutual trust between the two sides, internal divisions within Israel, and the constant risk of the ceasefire agreement being torn apart or disrupted.

Hamas claims the ceasefire agreement is a “great victory for the heroic resistance of the Palestinian people and their indomitable spirit over more than 15 months in Gaza.” Iran’s Islamic Revolutionary Guard also called it “a great victory for Palestine.” Analysts believe such statements are intended to lie to others and also themselves. Compared to previous Middle East wars, this “Sixth Middle East War,” which lasted 15 months and involved more than a dozen regional and external countries and actors, left no true winners. It resulted in a multi-party loss, with only degrees of defeat differing among parties.

Was Hamas or Palestine the victor?

The facts suggest otherwise. The Palestinian people, particularly those in Gaza, suffered immensely under Israel’s over-a-year-long military siege and economic blockade. Nearly 50,000 people died—most of them women and children—over 100,000 were injured or disabled, critical infrastructure was destroyed, and the ecological consequences are far-reaching. Survivors teeter on the edge of life and death. In short, during the war, Gaza became a living hell for civilians, who endured unimaginable suffering. This marks the third catastrophic disaster since 1948 for Palestinians, with unprecedented losses in life and material. Even low-level economic reconstruction and societal recovery will require decades.

Hamas’s strategy of provoking Israel with militant attacks drew disproportionate retaliation, bringing the Palestinian cause into the global spotlight and isolating Israel as never before. Yet, this was achieved at the cost of enormous sacrifices and disasters for Palestinians. It has further entrenched both sides in a vicious cycle of hatred, violence, and bloodshed.

Is Israel the winner of this war?

The facts suggest otherwise. As the strongest military power in the Middle East, Israel appeared to excel in its “seven-front combat,” fighting with overwhelming odds and inflicting fatal blows on Hamas and Hezbollah in Lebanon, shattering the “Resistance Axis.” However, most of these adversaries are non-state actors whose manpower, equipment, and foreign support cannot compare to Israel, which benefits from long-standing U.S. aid and military readiness. Despite this, Israel failed to eliminate Hamas’ remnants, had to resort to high rewards to secure the return of its detained personnel, and ultimately accepted prisoner exchanges and a ceasefire to resolve the crisis. This war has been a political and economic failure for Israel, costing many lives, destabilizing the nation, damaging its international image, and losing it the support of global public opinion. It even led to its Prime Minister and former Defense Minister being labeled “war criminals” by the International Criminal Court.

If neither Israel nor Palestine emerged as winners, did any other parties involved in the war benefit and become winners? In my view, there were no winners at all. Even for those perceived as winners, a dialectical and long-term perspective is needed.

The United States is undoubtedly a major loser

For the first time in the Middle East conflict, the superpower lost the initiative, playing a marginal role, neither decisive in war nor peace. The U.S. not only lost its decision-making and leadership authority in Middle Eastern affairs but also became a “hostage state” to Israel. It was passive throughout the year-long conflict, offering rhetorical support and military aid but unable to influence the war’s course. In previous Middle Eastern wars, the U.S. had been the dominant power:

– In the 1948 First Arab-Israeli War, the U.S. orchestrated two ceasefires, helping Israel defeat five Arab nations.

– In the 1956 Suez Crisis, the U.S. forced Britain, France, and Israel to withdraw, solidifying its foothold in the Middle East.

– During the 1967 Six-Day War, the U.S. fully armed Israel, enabling its victory over the Soviet-backed Arab bloc.

– In the 1973 Yom Kippur War, the U.S. provided emergency military aid to Israel, turned the tide, and initiated “shuttle diplomacy” to secure a ceasefire and disengagement.

– In the 1982 Lebanon War, the U.S. ensured Israel’s military success before again leveraging diplomacy to save the PLO leadership while removing them from the Israeli-Palestinian conflict frontlines.

Iran is also a major loser

As the dual engine of the “Resistance Axis” and the “Shiite Crescent,” Iran was neither willing nor able to protect Hamas and Hezbollah from devastating military strikes. It also failed to shield Yemen’s Houthi rebels from airstrikes by the U.S., U.K., and Israel and eventually abandoned Syria’s regime. These failures have significantly weakened the “Resistance Axis” and the “Shiite Crescent,” with Iran’s influence historically contracting to the Persian Gulf and Mesopotamia. On two occasions when Iran directly confronted Israel militarily, it preemptively notified Israel to minimize losses, wary of provoking uncontrollable escalation or bringing disaster upon itself.

The “Sixth Middle East War” exposed Iran’s hesitancy and weakness in critical moments. It revealed a self-serving pragmatism prioritizing national and ethnic interests, underscoring that Iran lacks both the moral authority and the capability to fulfill its ambitions as a regional power. This misalignment between its aspirations and actual strength suggests Iran is not ready for the “crown” it seeks to wear. The war also nullified half a century of Iran’s investments and efforts in revolutionary Islamic diplomacy. Iran now faces potential domestic scrutiny over its foreign policy, strategic effectiveness, and even the legitimacy of its regime, which could impact its political stability.

Russia is certainly another big loser

Russia also abandoned the Bashar regime during a critical period, easily relinquishing its last Middle Eastern strategic asset, giving up what it had preserved with significant military and diplomatic resources a decade ago. The Bashar regime was easily and unexpectedly toppled during the Palestine-Israel conflict, showing that as Damascus’ foremost ally, Russia has completely lost its standing as a first-class geopolitical and military power. Its weakness in strategic intelligence, judgment, intervention, and coordination capabilities is strikingly evident. Losing Syria signifies that Russia no longer has the capability to handle two regional wars simultaneously, nor the ability to act as a world-class power exerting influence in the Middle East.

The United Nations: Another major loser

The United Nations also proved powerless in the face of the “Sixth Middle East War,” becoming severely marginalized and even humiliated and provoked by Israel multiple times. Draft resolutions from the Security Council urging a ceasefire between Palestine and Israel were repeatedly vetoed by the United States. Even when reluctantly passed, neither side implemented them. Israel frequently questioned the legitimacy of the United Nations, repeatedly urged the Secretary-General to resign, discredited UN missions, and openly insulted UN peacekeeping forces. Historically, the UN General Assembly passed Resolution 181 in 1947, granting Israel its “birth certificate” and sowing the seeds of the Palestinian problem. Between 1948 and 1982, despite being manipulated by major powers and caught in opposition and division, the UN was still able to broker ceasefires among warring parties and pass famous Security Council resolutions, such as Resolution 338 in 1967 and Resolution 242 in 1973, forming the legal foundation of the “land for peace” framework in the Middle East peace process.

Turkey’s role: A winner?

Some may argue that Turkey emerged as the biggest winner from this war. This is incorrect. Superficially or in the short term, Turkey indeed supported the rebel forces in toppling Bashar and seemed to gain a larger voice in the reconstruction of the new Syrian power structure, as well as suppressing and encircling the Kurds. However, as a regional power, Turkey’s deep involvement in Syrian affairs has plunged it further into the Middle Eastern quagmire, inevitably intensifying its rivalries and frictions with Israel, Saudi Arabia, other Arab countries, Russia, Iran, and even the United States. This situation risks reviving the “multi-problem” nightmare Turkey experienced after the “Arab Spring,” leading it to once again face the consequences of being stonewalled on multiple fronts.

The broader implications

On October 7, 2023, when “The Al-Aqsa Flood” launched a successful textbook-style attack on half of Israel via air, land, and sea, no one expected it to evolve into a large-scale, prolonged, multi-party, and devastating “Sixth Middle East War.” No one foresaw that Israeli leaders would be globally wanted by the International Criminal Court for war crimes. Nor did anyone anticipate that the Syrian government, which had survived a 13-year war to retain power, would collapse so quickly, becoming the most unexpected loser.

From the perspective of global and historical development, the biggest loser of the Palestine-Israel conflict is the peace, development, prosperity, and progress of the entire region. This large-scale multi-party loss is not about the gains or losses of one nation or territory but represents the collective success or failure of dozens of countries and hundreds of millions of people. Across the continents, there is no other region as “cursed” or “toxic” as the Middle East, which has been mired in friction, conflict, and chaos for so long. Likewise, no other people on Earth have had to witness, day after day, year after year, and generation after generation, bloodshed, killing, death, and destruction as their daily reality and even their life’s fate, relying on violent exchanges to sustain national and economic development.

Although the ceasefire after the twists and turns of the conflict deserves celebration, as it embodies rationality and humanity far more than continued slaughter, providing all sides with a chance to breathe and hope for survival, if the parties involved do not fundamentally heal their deeply entrenched zero-sum mindset, violent philosophies, and jungle rules, peace in the Middle East will remain out of reach. This cradle of human civilization is destined to become one of history’s greatest failures.

Prof. Ma is the Dean of the Institute of Mediterranean Studies (ISMR) at Zhejiang International Studies University in Hangzhou. He specializes in international politics, particularly Islam and Middle Eastern affairs. He previously worked 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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