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The U.S. 2025 ‘National Security Strategy’ Report and the Disintegration Facing the U.S.–Europe Alliance

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The Twilight of Transatlantic Relations: The U.S. 2025 Version of the ‘National Security Strategy’ Report and the Disintegration Facing the U.S.–Europe Alliance

Wang Wanying and Ma Xiaolin

The 2025 version of the “National Security Strategy” report released by the Trump administration of the United States on December 4 was like a huge stone thrown into a pool of water, stirring up stormy waves. This document, which proclaims America’s future new security policy, not only removes China and Russia from the position of primary threats, but also tolls the imminent centennial death knell for the transatlantic alliance that has lasted for a hundred years. Not only that, Trump also harshly castigated and humiliated America’s European allies, fearing that Europe might misread this report announcing the end of the U.S.–Europe marriage.

On December 9, Trump said in an interview with the U.S. outlet Politico that “most European countries are becoming rotten.” He accused Europe’s immigration policies of being a “disaster,” saying that “they want political correctness, and that makes them weak” … and that some European leaders are “utter fools.”

The Daily Telegraph, published on the 10th, even revealed that a leaked version of the 2025 “National Security Strategy” report shows that the Trump administration intends to have Hungary and Italy leave the European Union. German Chancellor Merz, however, was not surprised. When commenting on this official U.S. document on the 9th, he said that America’s national security strategy confirmed his judgment: “Europe, and Germany as well, must be more independent from the United States in terms of security policy.” He emphasized that Europeans must be prepared for the United States no longer being an alliance partner …

Looking at the “National Security Strategy” (NSS) reports released by three U.S. administrations from 2017 to 2025, the U.S.–Europe transatlantic relationship has undergone a dramatic shock from “transactional partners” to a “values alliance,” ultimately moving toward “strategic divergence” and a “civilizational rupture.” The 2025 version of the “National Security Strategy” report marks that the transatlantic alliance system after World War II is facing substantive disintegration, and U.S.–Europe relations have officially entered a “post-ally era.”

This trajectory of evolution is not a simple policy swing, but rather a structural reckoning by the United States of its global strategy against the backdrop of soaring costs of maintaining hegemony and intensifying domestic political polarization. From the initial appearance of cracks in 2017 to the civilizational rupture in 2025, every step points to the “irreversibility of divergence,” with its roots deeply embedded in the profound misalignment of power, interests, and values between the U.S. and Europe.

The Overall Picture of the Evolution of Transatlantic Relations

The U.S. “National Security Strategy” is not only a declaration of foreign policy, but also a reflection of its domestic political ecology and global strategic anxiety. From 2017 to 2025, transatlantic relations experienced a shift from a “boiling frog in warm water” style of transactionalization, to a brief “last gasp” during the Biden period, and finally to a “shock therapy”–style rupture in 2025.

This evolution reveals a cruel strategic reality: the traditional Western alliance system can no longer adapt to a multipolar world order and the internal political ecology of the United States. The U.S.–Europe rupture in 2025 is not an accidental “black swan” event, but the inevitable result of three intertwined logics—U.S. hegemonic contraction, U.S.–Europe cognitive misalignment, and the deconstruction of values. A rupture in capabilities forces the United States into strategic retrenchment; a rupture in threat perception leads the U.S. and Europe to move in opposite directions regarding their geopolitical focal points; and a rupture in values pushes former allies to the edge of a “clash of civilizations.” This process demonstrates that the estrangement of transatlantic relations is not a temporary tactical adjustment, but the inevitable end of a historical cycle.

  • The Prelude to Divergence: Accumulation of Contradictions and Failure of Repair (2017–2024)

Before the final rupture in 2025, U.S.–Europe relations went through policy attempts by two administrations that were starkly different yet causally linked. Various signs in this stage indicate that the foundation of the alliance had long been eroded by “transactionalism,” and subsequent repair efforts failed to address the root cause.

1.  The Initiation of Transactionalism: The First Appearance of Cracks (2017–2020)

The “National Security Strategy” report released in December 2017 was the starting point of divergence. It broke the post–Cold War U.S. consensus on the “liberal international order” and introduced naked realism into the sacred realm of alliance relations.

First, it established the “debt-based” positioning of allies. The Trump 1.0 administration regarded allies as projects to be evaluated on a balance sheet. This so-called “principled realism” was in fact “transactionalism without moral distinction.” The report harshly criticized NATO allies for failing to meet the target of 2% of GDP in defense spending. At the time, this was interpreted in Europe as a negotiating tactic, but later proved to be a signal that the U.S. strategic community’s tolerance for NATO “free-riding” had dropped to zero.

Second, it pioneered economic nationalism. The 2017 version of the “National Security Strategy” defined economic prosperity as a core pillar of national security and, for the first time, explicitly regarded trade deficits as a national security threat. This logic of “trade as war” made it difficult for the U.S. and Europe to form a united front in policy toward China. During this period, Europe was forced to adopt a “hedging” strategy, attempting to maintain a balance between China and the United States.

2. The Fragile “Last Gasp”: Failure of Repair (2021–2024)

After the Biden administration took office, it attempted to reverse its predecessor’s course through the 2022 version of the “National Security Strategy,” once again establishing Europe as a core partner in defending the “rules-based order.” However, the limitations exposed during the implementation of this report highlighted the structural irreversibility of the U.S. strategic retrenchment trend.

First, the hollowing out of alliance mechanisms. Although the Biden administration established the “U.S.–EU Trade and Technology Council” (TTC) in an attempt to coordinate technology policy toward China, as think tanks such as the Atlantic Council have pointed out, the U.S. side was never willing to establish a “democratic technology alliance” with treaty-binding force. The TTC ultimately remained only at the level of loose policy dialogue.

Second, the covert continuation of “America First.” The massive subsidies and local content requirements in the Inflation Reduction Act (IRA) triggered strong warnings from Macron about a “split within the Western camp,” and Europe’s industrial circles even described it as “the murder of European industry.” This meant that even during the “ally” period, the United States was unwilling to make concessions to Europe on core economic interests. This kind of “false healing” failed to withstand the pressure of the resurgence of isolationism within the United States, laying the groundwork for the complete rupture in 2025.

  • The Outbreak and Inevitability of the 2025 Divergence

The 2025 version of the “National Security Strategy” report released by the Trump 2.0 administration is not only a sudden policy shift, but also a “final reckoning” of the contradictions accumulated in the earlier period. It marks the elevation of U.S.–Europe relations from tactical divergences entangled in interests to a structural rupture at the level of geopolitics and civilizational cognition.

1. The Explicit Outbreak of Divergence: Deep Ruptures Across Four Dimensions

Strategic “Neglect and Retrenchment”:
Many media outlets have keenly noted that in this report of more than 30 pages, only two and a half pages are devoted to Europe. Leonardo Hutter, a researcher at the Belfer Center for Science and International Affairs in the United States, stated bluntly that this means the United States no longer regards Europe as part of its core interests: “Europe has become increasingly irrelevant to the United States.” The report clearly proposes prioritizing the Western Hemisphere, aiming to eliminate the influence of external forces in Latin America, marking a substantive retreat by the United States from “globalism” to “hemispherism.” The United States announced a substantial reduction in its permanent military presence in Europe, the Middle East, and Africa. The report states that “indiscriminate global intervention has hollowed out U.S. power,” and that the United States must refuse to continue acting as the “world’s police.”

Security “Undermining at the Root”:
On the NATO issue, the 2025 report adopts a strategy of “undermining at the root,” completely changing the nature of the alliance. The report not only requires Europe to share costs, but also demands that Europe take over defense responsibilities. It reiterates the startling consensus reached at the June 2025 Hague Summit: NATO member states committed to raising defense spending to 5% of GDP by 2035. Even though this target adopts a dual-track structure of “3.5% core defense + 1.5% civil defense infrastructure,” easing short-term fiscal pressure, it still maintains a high-pressure posture requiring allies to fully pay for their own security. The strategic intent behind setting such a high threshold is not truly to expect Europe to meet it, but to create a state in which allies are in “permanent default.” This provides the United States with a “legitimate” pretext, based on the principle of “transactional realism,” to adjust, scale back, or even refuse to implement Article Five at any time, effectively making NATO’s collective defense commitment conditional and hollow.

In addition, the report announces the suspension of all military assistance to Ukraine and unilaterally proposes a peace plan aimed at “rebuilding strategic stability with Russia.” This plan includes limiting Ukraine’s military capabilities and prohibiting its accession to NATO, and is widely regarded as sacrificing Ukraine’s sovereignty, effectively relegating Europe’s security agenda to a secondary position. From Vice President Vance’s blunt criticism of Europe at the Munich Security Conference at the beginning of the year, to the United States’ “over-the-head diplomacy” toward Europe on the Ukraine issue, all indicate that the United States no longer regards Europe as an equal partner requiring consultation, but rather as a strategic chess piece to be disposed of at will.

Economic “Designation as an Adversary”:
In the economic and trade domain, the 2025 report regards the European Union as a major competitor, and in some formulations even implies that it is more “exploitative” than geopolitical rivals. The report places “economic security” in an absolute priority position and plans to impose punitive “reciprocal tariffs” on EU goods in response to the EU’s Carbon Border Adjustment Mechanism (CBAM) and digital services tax. The report even uses the highly confrontational term “Liberation Day tariffs,” implying that the United States needs to be “liberated” from Europe’s trade exploitation. In the high-tech field, the United States leverages its dominance in AI and quantum computing, using extraterritorial jurisdiction and standards monopolization to force European companies to become dependent on the United States within technological ecosystems. This logic of “you must rely on me, but I will exploit you” renders the TTC mechanism nominal in existence only, transforming it into a tool for U.S. pressure.

Ideological “Civilizational Defense”:
The most shocking and subversive part of the 2025 report is its abandonment of America’s customary “export of democracy,” turning instead to an isolationist “civilizational defense,” and directly launching attacks on Europe’s mainstream political values. The report puts forward the theory of “civilizational erosion,” claiming that due to open immigration policies, multiculturalism, and the “suppression” of freedom of speech (referring to EU regulation of social media), Europe faces the risks of “civilizational extinction” and “replacement.” This marks a rupture between official U.S. ideology and Europe’s liberal mainstream.

Furthermore, the report openly proposes that the United States will support “patriotic” parties within Europe (namely right-wing populist forces) to “correct Europe’s current trajectory” and resist the erosion of the foundations of Western civilization by multiculturalism. This means that the United States has shifted from being a supporter of European integration to an instigator of European fragmentation. Former Swedish Prime Minister Carl Bildt sharply pointed out that this effectively positions the United States as “the right wing of Europe’s far right.” Liana Fix, a researcher at the Council on Foreign Relations, believes that this way of viewing U.S.–Europe relations from a “civilizational” perspective marks “the end of transatlantic alliance relations based on liberal values.”

2. Proof of the Inevitability of Divergence: Three Structural Root Causes

From “transaction” in 2017, to “alliance” in 2022, and then to “divergence” in 2025, the evolution of the positioning of transatlantic relations in U.S. national security strategy reveals a cruel strategic reality: the traditional Western alliance system can no longer adapt to a multipolar world order and the internal political ecology of the United States. This evolution is not accidental, but the result of the combined effects of three major structural factors:

First is the rupture of power. The United States is no longer able to simultaneously maintain a global hegemonic system and the living standards of its domestic population, and must carry out strategic retrenchment. The idea of “denial strategy” has become mainstream—concentrating resources on the Indo-Pacific and abandoning Europe.

Second is the rupture of threat perception. The United States views China as an existential threat and Europe as a tool or even a burden; Europe views Russia as an existential threat and China as a systemic rival but also a necessary partner for cooperation. This misalignment of geopolitical interests is structural and cannot be bridged by diplomatic rhetoric.

Third is the rupture of values. With the institutionalization of right-wing populism in the United States, the U.S. and Europe have gradually drifted apart on core values such as democracy, human rights, climate change, and multilateralism. “Shared values” have become an empty shell, replaced by the projection of the theory of “civilizational conflict” within the Western world itself.

  • Europe’s Passive Adaptation to the “Inevitable Divergence”

If German Chancellor Merkel’s speech in 2017 was a “warning” of the U.S.–Europe breakup, then the 2025 version of the U.S. “National Security Strategy” report is the “verdict.” Europe has no choice but to accept the reality that the United States has already “left.” Confronted with the “shock” brought by the 2025 report, Europe’s strategic community has gone through a process from shock and denial to forced action. The extremization of U.S. policy is pushing Europe to become a truly independent geopolitical pole.

1. Promoting the Hardening of Europe’s Political Stance

In a speech on December 8, European Council President Costa sent a clear signal. He stated that it is unacceptable for the United States to issue threats of interference in Europe’s internal politics, emphasizing that “allies do not threaten to interfere in the internal political lives of other allies.” Costa frankly admitted that differences in worldview between the United States and Europe are widening, that the United States no longer believes in multilateralism, and that Europe must “achieve sovereign autonomy” in response to the new U.S. strategy. Former President of the European Commission Prodi also called for the formulation of policies “to make its stance firmer,” even though the EU has not yet formed a systematic response. However, Europe’s voices are not unified. U.S. support for European right-wing forces has produced immediate effects, exacerbating fragmentation within Europe. Right-wing governments in countries such as Hungary and Italy have welcomed parts of the 2025 report, viewing them as endorsements of their own anti-immigration and anti–EU centralization policies. This has led to divisions within the EU on policies toward the United States and Russia, making it difficult to form a unified voice to counter U.S. pressure.

2. Accelerating the Process of “Strategic Autonomy” and Tactical Hedging

The introduction of the 2025 version of the “National Security Strategy” report and a series of moves by the Trump administration have made Europe’s desire to accelerate “strategic autonomy” even stronger. On the one hand, defense autonomy is speeding up. Faced with the threat of U.S. troop withdrawals, countries such as Germany and Poland have been forced to substantially increase defense budgets, trying to fill the conventional deterrence vacuum left by the United States; Germany plans to establish a new special defense fund, with the “turning point of the times” shifting from slogan to implementation, and is discussing with France the Europeanization of the nuclear umbrella; the United Kingdom has also clearly put forward “NATO first, but not NATO only,” and is seeking to establish a new strategic partnership with the European Union; as the only two nuclear powers in Europe, the United Kingdom and France have seen an unprecedented increase in urgency regarding defense cooperation, and the two countries are accelerating the advancement of an upgraded version of the “Lancaster House Treaties.” In short, Europe is enhancing its “autonomous capacity to act without the United States” by increasing defense capabilities and investing in strategic industries. On the other hand, the “red line” defense in technology and trade. Since the beginning of this year, the European Union has carried out a series of enforcement actions against U.S. technology companies based on the Digital Services Act and the Digital Markets Act. Analysts believe this is the EU’s direct response to U.S. tariff intervention, intended to “draw red lines” vis-à-vis the United States in the field of digital sovereignty. Europe is learning to play its hand with the United States more cleverly by gathering more bargaining chips.

*Wang Wanying – Assistant Research Fellow, Institute for Central and Eastern European Economic and Trade Cooperation Studies, Ningbo University; Lecturer, School of Foreign Languages, Ningbo University

*Ma Xiaolin – Specially Appointed Research Fellow, Institute for Central and Eastern European Economic and Trade Cooperation Studies, Ningbo University; Bao Yugang Chair Professor; Professor, Zhejiang International Studies University; Dean, Institute of Mediterranean Studies

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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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