West Asia News Live: Saudi-Iraq economic talks, Al-Aqsa tensions, Iran’s crackdown mark a volatile day

Netanyahu’s reported plan to occupy Gaza signals potential regional instability and US friction

Israeli Prime Minister Benjamin Netanyahu has reportedly decided to propose a full occupation of the Gaza Strip, a move that could significantly heighten regional geopolitical risk and create friction with key allies, Israel National News says in a report. The proposal, which sources say is opposed by the Israel Defense Forces (IDF) leadership, is set for a Cabinet discussion. A long-term Israeli occupation would represent a major policy reversal from the 2005 disengagement and could jeopardise relations with the US, which has publicly opposed such a move, potentially impacting diplomatic and military support. For financial markets, such a development would increase uncertainty in West Asia, potentially affecting energy prices and complicating regional economic normalisation efforts.

Israel’s high court blocks dismissal of attorney general, escalating political instability

Israel’s High Court of Justice has issued a temporary injunction preventing the government of Prime Minister Benjamin Netanyahu from dismissing Attorney General Gali Baharav-Miara, according to a report in Al Jazeera. The decision represents a significant check on executive power amid ongoing tensions over the government’s proposed judicial overhaul and Netanyahu’s personal corruption trials, for which Baharav-Miara is the chief prosecutor. This judicial intervention, whilst potentially reassuring for investors concerned about the rule of law, also signals prolonged political and constitutional instability. The continued clash between the government and the judiciary could weigh on investor confidence and introduce further volatility into Israeli markets, as it highlights deep-seated governance risks.

British couple detained in Iran moved to separate prisons

A British couple detained in Iran for seven months on espionage charges has been moved to separate prisons in and near Tehran, heightening fears for their welfare, according to a report in The Guardian. Lindsay and Craig Foreman were seized in Kerman in early January while on a round-the-world motorbike trip. Their son reported the latest development on Monday, expressing concern over the separation.

Detention of British couple in Iran elevates UK-Iran diplomatic tensions

A British couple, Lindsay and Craig Foreman, are being held in Iran, with their son, Joe Bennett, claiming they have been placed in solitary confinement in the nation’s worst prisons, BBC says in a report. This development significantly raises diplomatic tensions between London and Tehran, which are already strained over issues including Iran’s nuclear programme and regional activities. The incident is consistent with what human rights organisations describe as a long-standing Iranian practice of detaining foreign and dual nationals, often on vague security charges, to use as leverage in international negotiations. The situation presents a complex challenge for the UK government and contributes to the broader climate of geopolitical risk and distrust between Iran and Western powers, potentially complicating wider diplomatic engagement on economic sanctions and regional security.

More from World

Egypt and Jordan bolster energy co-operation

Egypt and Jordan are bolstering their energy co-operation, a strategic move with significant economic implications for both nations, as per a report in Asharq Al-Awsat. The agreement is set to enhance Jordan’s energy security, addressing its critical dependency on imports which account for over 90% of its energy needs. For Egypt, this reinforces its position as a key regional energy hub and net exporter of natural gas, creating new revenue streams and diversifying its export markets. This strengthened partnership leverages existing infrastructure, such as the Arab Gas Pipeline, and is indicative of a broader trend towards greater economic integration and energy interdependence in West Asia and the Eastern Mediterranean.

Yemeni rial recovers a third of its value following government economic measures

The Yemeni rial has appreciated by approximately one-third of its value in regions under the control of the internationally recognised government, a significant development in the nation’s war-torn economy, Asharq Al-Awsat says in a report. This recovery is attributed to a concerted push by the Presidential Leadership Council (PLC), operating from Aden, to curb hyperinflation and stabilise prices for citizens. The measures are reportedly supported by crucial foreign currency injections and financial aid from allies including Saudi Arabia and the UAE, which provide the Aden-based central bank with the liquidity needed for its monetary policies. This economic gain for the PLC-governed areas contrasts with the situation in Houthi-controlled territories, highlighting the country’s deep economic fracture and the existence of dual monetary systems.

Gaza health ministry reports 94 deaths in 24 hours

The Gaza Health Ministry announced that 94 people have been killed within a 24-hour timeframe as the conflict and humanitarian crisis in the region continue to escalate, according to a report in Haaretz. The reported fatalities are a result of the ongoing military operations in the Gaza Strip. International bodies and aid agencies note that these figures, while difficult to independently verify, underscore the severe conditions, including a collapsed healthcare system and widespread shortages of food, water, and medical supplies. The ministry’s figures typically do not differentiate between combatants and civilians in initial reports.

Meta faces over $1bn lawsuit alleging facilitation of Hamas attacks

A lawsuit seeking damages exceeding $1 billion has been filed against Meta by families of the victims of the October 7, 2023, attacks, Israel National News says in a report. The plaintiffs allege that Meta’s platforms, including Facebook and Instagram, facilitated the Hamas-led attacks by allowing them to be livestreamed, which they claim caused significant emotional and psychological trauma. This legal action presents a substantial financial and reputational risk for Meta, potentially establishing a major precedent for the liability of technology platforms regarding user-generated content in conflict zones and could intensify regulatory scrutiny over its content moderation policies.

Beirut port blast investigation nears conclusion, with significant economic implications pending

The long-stalled investigation into the 2020 Beirut port explosion is reportedly nearing its conclusion, a development with significant economic implications for crisis-hit Lebanon, Asharq Al-Awsat says in a report. The outcome is a critical test for the country’s judiciary and could directly influence future international aid, diplomatic relations, and the imposition of sanctions against Lebanese officials. A verdict perceived as credible could restore some confidence, whereas a failure to deliver justice for the blast—caused by negligently stored ammonium nitrate—risks further international disengagement and could exacerbate public unrest, further destabilising the nation’s fragile economy.

Saudi finance ministry welcomes 2025 IMF economic consultation report

Saudi Arabia’s Ministry of Finance has formally welcomed the conclusions of the International Monetary Fund’s (IMF) 2025 Article IV consultation, a move seen as reinforcing its commitment to economic reforms under the Vision 2030 agenda, Asharq Al-Awsat says in a report. The public endorsement of the IMF’s routine assessment is strategically significant for financial markets, as it aims to bolster international investor confidence by signalling transparency and fiscal discipline. This development is particularly crucial for attracting foreign direct investment into the Kingdom’s burgeoning non-oil sectors. By engaging proactively with international financial institutions amidst global economic uncertainty, Saudi Arabia seeks to underscore its economic stability and enhance its standing as a key player in global economic governance.

Five SDF members killed in reported ISIS attack in Syria

Five members of the Syrian Democratic Forces (SDF) were killed during an attack attributed to ISIS in Syria, Asharq Al-Awsat said in a report. The incident highlights the persistent security threat posed by the ISIS insurgency in the region, which continues to operate through sleeper cells and conduct attacks despite its territorial defeat in 2019. The SDF, a key US partner in counter-terrorism operations, remains engaged in efforts to combat the group’s resurgence in northeastern Syria.

Former Israeli security chiefs warn Gaza war lacks a clear political strategy

A group of prominent former Israeli security chiefs, including past heads of the IDF, Shin Bet, and Mossad, has publicly criticised the government’s handling of the Gaza war, describing it as ‘futile’ due to the absence of a clear political strategy, Haaretz says in a report. Their main criticism centres on the lack of a viable ‘day after’ plan for the governance and stability of Gaza, suggesting that military achievements may be unsustainable. This public dissent from respected security figures is amplifying political pressure on Prime Minister Benjamin Netanyahu’s government and could heighten market uncertainty, potentially impacting investor confidence and the stability of the Israeli shekel as the conflict’s economic costs continue to mount without a clear endgame.

Saudi crown prince and Kuwaiti prime minister meet to discuss collaboration

Saudi Arabia’s Crown Prince Mohammed bin Salman and Kuwait’s Prime Minister held a meeting to reaffirm their countries’ historic ties and discuss enhancing collaboration, Asharq Al-Awsat said in a report. The discussions are part of wider regional efforts to bolster unity within the Gulf Cooperation Council (GCC). Key areas of shared interest include coordinating on economic diversification strategies, such as Saudi Arabia’s Vision 2030, and aligning on energy policies as key members of OPEC+.

Saudi Arabia’s accelerated pace of executions raises ESG concerns for investors

Saudi Arabia has executed 17 people in three days, bringing the year’s total to 239 in the fastest pace of capital punishment seen since 2022. This surge in executions presents a significant challenge to the economic reform narrative of Crown Prince Mohammed bin Salman’s Vision 2030. The development is drawing renewed scrutiny from human rights organisations and complicates the kingdom’s efforts to improve its international image. For foreign investors and businesses, the executions heighten Environmental, Social, and Governance (ESG) risks, potentially deterring investment from companies sensitive to reputational damage and ethical mandates, thereby casting a shadow over the country’s ambitions to attract foreign capital and diversify its economy.

London police warn of mass arrests at planned protest against Palestine Action ban

A significant protest is planned for Saturday in London calling for the UK government to reverse its proscription of the group Palestine Action, according to a report in The Guardian. The Metropolitan Police have warned that individuals showing public support for the banned organisation could be arrested, potentially leading to a large-scale police operation. The demonstration follows the government’s decision on 5 July 2025 to ban Palestine Action under terrorism legislation.

Israel reportedly backs Gaza clans in post-war governance plan

Israel is reportedly engaging with and supporting local clans in Gaza to establish alternative governance and security structures in a post-Hamas landscape, according to a report in The Washington Post. This strategy is part of Israel’s planning for the period after the conflict and aims to fill the power vacuum left by the degradation of Hamas’s administrative control. The move is also seen as a way to bypass both Hamas and the Palestinian Authority, which Israel reportedly views as unable or unwilling to assume control. This approach, however, risks empowering local strongmen and potentially leading to internal Palestinian divisions and conflict over resources and influence.

Humanitarian aid delivered to minority communities in Syria’s Sweida region

The International Fellowship of Christians and Jews has mobilized and delivered emergency aid to minority communities in the Sweida region of Syria, Fox News said in a report. The assistance is targeted at Druze and Christian populations who have recently faced attacks from extremist groups.

Shas chairman Aryeh Deri urges yeshiva students to refuse military service

A statement from Shas party chairman Aryeh Deri, urging yeshiva students to refuse military enlistment even during wartime, has highlighted deep divisions within Israel’s government, according to a report in Israel National News. Deri’s declaration comes as Prime Minister Benjamin Netanyahu’s coalition, which relies on ultra-Orthodox parties like Shas, faces pressure to legislate a new conscription law following Supreme Court rulings that demand more equitable national service. The stance on military exemptions for the ultra-Orthodox community is a central point of social and political tension, particularly amid the country’s ongoing military operations and need for manpower.

Israeli settlers torch Palestinian farmhouse in West Bank, leaving ‘Revenge’ graffiti

A Palestinian farmhouse in the West Bank was torched in an attack attributed to Israeli settlers, who also spray-painted the phrases ‘Revenge’ and ‘Price Tag’ on the property’s walls, according to a report in Haaretz. The Palestinian owner of the farm stated that providing information to the Israeli army and police about the perpetrators’ origins has proven ineffective. This type of incident is commonly referred to as a ‘price tag’ attack, a tactic used by extremist settlers in retaliation for actions they oppose.

New Trump policy links US disaster aid to state anti-boycott laws on Israel

A new policy from the administration of US President Donald Trump now requires American states to have measures opposing the boycott of Israel in order to receive federal disaster aid, Haaretz says in a report. This move, aimed at countering the Boycott, Divestment, Sanctions (BDS) movement, links critical humanitarian and recovery funding to a foreign policy position. The policy creates a new compliance requirement for companies with state-level contracts, as they may need to adopt specific corporate stances on the issue to remain eligible for public tenders. Sectors reliant on post-disaster reconstruction, such as engineering and construction, will now have to navigate these state-level political requirements for federally-funded projects.

Widespread destruction reported in Gaza’s al-Zeitoun neighbourhood following Israeli military operation

Residents of Gaza’s al-Zeitoun neighbourhood are returning to find their homes and infrastructure in ruins following the conclusion of a 45-day Israeli military operation, as per a report in Al Jazeera. The extensive destruction highlights the severe humanitarian crisis and points towards immense future reconstruction costs, which will necessitate significant international aid and place a substantial financial burden on donor nations and organisations. The event underscores the economic consequences of the ongoing conflict, contributing to regional instability that can affect investor confidence and markets across West Asia.

Greece threatens to block Turkish access to EU loans over Aegean and Cyprus tensions

Greece and Cyprus are opposing Turkey’s participation in the European Union’s SAFE loan programme over long-standing disputes regarding maritime boundaries and the division of Cyprus, according to a report in Al-Monitor. This move creates a division within the EU, as other major powers, including Germany and Italy