West Asia News Live: Australia’s shift and Netanyahu’s Gaza plan stir diplomatic storm

PA prime minister claims momentum for statehood, accuses Israel of ‘economic warfare’

Palestinian Authority Prime Minister Mohammad Mustafa has asserted that international diplomatic efforts to establish a Palestinian state are gaining significant momentum, Israel National News said in a report. Concurrently, Mustafa accused Israel of engaging in “economic warfare” and urged for the release of tax revenues that Israel collects on behalf of the PA but has withheld. His statements highlight the PA’s severe financial crisis, which it links directly to Israel’s policy of retaining the funds, and underscore a diplomatic strategy focused on leveraging growing international support for statehood to achieve financial and political objectives.

Experts propose ‘healthocide’ term for rising attacks on medical services in conflict zones

Academics are urging for the term “healthocide” to be adopted to describe the increasing trend of deliberate attacks on medical personnel and facilities in conflict zones, a development that threatens the principle of medical neutrality, according to a report in The Guardian. The call comes amid a rise in such incidents in West Asia, with Gaza and Lebanon highlighted as specific examples. The report notes this is part of a global pattern, with similar attacks on health services occurring in Ukraine, Sudan, and Syria. The proposed term aims to draw attention to the severity and systematic nature of destroying healthcare infrastructure as a tactic of war.

Gaza’s health ministry reports spike in neurological diseases amid poor water and nutrition

The Health Ministry in Gaza has reported a significant increase in neurological diseases, with 95 new cases recorded in the last 24 hours, according to a report in Haaretz. The ministry, which operates under Hamas administration, stated that the spike is a direct result of a severe deterioration in nutrition and the quality of drinking water available to the population. This health crisis is occurring amid the ongoing conflict and blockade, which have damaged critical infrastructure and severely restricted access to essential supplies like food, clean water, and medicine.

Egyptian president accuses Israel of ‘systematic genocide’ in Gaza, escalating regional tensions

Egyptian President Abdel Fattah el-Sisi has publicly accused Israel of committing a ‘systematic genocide’ in the Gaza Strip, escalating diplomatic tensions in West Asia, Al Jazeera says in a report. This declaration from the leader of a key Arab nation, which has a historic peace treaty with Israel, signals a severe strain in regional relations and heightens geopolitical risk for investors. The accusation could influence international markets by creating uncertainty around key sectors such as energy and shipping, particularly concerning the stability of routes like the Suez Canal. Furthermore, the statement lends political weight to ongoing legal challenges against Israel at the International Court of Justice (ICJ), potentially increasing the likelihood of economic sanctions or other punitive measures that would impact businesses operating with Israel.

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Brother of Israeli hostage pleads with UN Security Council for action

In a direct appeal to the United Nations Security Council, Ilay David, the brother of hostage Evyatar David, demanded an end to what he described as the UN’s silence regarding the plight of individuals held captive since the October 7th attacks, according to a report in Israel National News. David’s address implored the council to take decisive action before it is too late, highlighting the ongoing urgency and emotional toll of the hostage crisis on the families involved.

Gaza conflict developments include starvation debate, global protests and tech company controversy

Recent developments related to the conflict in Gaza include a social media campaign from Israel that denies claims of starvation in the region as the death toll mounts, according to a report in Middle East Eye. The issue of starvation has also triggered protests at Egyptian embassies around the world. In a separate development, social media platform TikTok is facing a backlash after hiring a former Israeli army instructor to be its new hate speech manager. Additionally, Israeli Prime Minister Benjamin Netanyahu has reportedly drawn criticism for making a joke.

Gulf states navigate economic challenge of balancing growth with inflation control

Gulf states are navigating a delicate economic balance, leveraging high oil revenues to fund ambitious growth and diversification initiatives whilst simultaneously trying to curb rising inflationary pressures, according to a report in Asharq Al-Awsat. The primary challenge stems from external factors, including high global energy prices that boost state revenues but also increase liquidity, and imported inflation from volatile food prices and supply chain disruptions. This situation is complicated by regional currency pegs to the US dollar, which compel Gulf central banks to mirror US Federal Reserve interest rate hikes, thereby limiting their independent monetary policy options to control domestic inflation. Consequently, governments are relying on fiscal policy and regulatory measures to manage economic stability, aiming to sustain growth for job creation and social welfare without allowing the cost of living to erode public purchasing power.

Heritage commission reports 24 encroachment violations for July

A governmental heritage commission in West Asia reported 24 encroachment violations on protected cultural and historical sites during July 2025, Asharq Al-Awsat said in a report. The violations involved unauthorized construction and unapproved development on land legally designated for preservation.

Israeli doctors report severe malnutrition among Gazan children

Israeli paediatricians have voiced concern over the condition of emaciated children in Gaza, stating they do not encounter such extreme cases of malnutrition among their Israeli patients, The Times of Israel said in a report. The doctors’ comments follow the circulation of images showing a skeletal Palestinian boy, which prompted criticism. The article notes that details of a background disease in that specific child’s case later emerged, but the broader statement from the medical professionals highlights that no Israeli patient would be permitted to suffer from such a severe level of malnutrition, pointing to the dire humanitarian conditions affecting Gazan youth.

Ali Larijani reappointed to lead Iran’s top security council

Ali Larijani has been reappointed to the influential position of secretary of Iran’s Supreme National Security Council, a key body for formulating national security and foreign policy, as per a report in Asharq Al-Awsat. The move marks a significant political return for the former parliamentary speaker, who was disqualified from the 2021 presidential election, and comes during a critical leadership transition following the death of President Ebrahim Raisi in May 2024. As secretary, Larijani will have a crucial role in shaping Iran’s posture on its nuclear programme and regional security, issues with direct implications for global energy markets and international sanctions. Regional powers and Western nations will scrutinise the appointment for any shift in Tehran’s approach, given Larijani’s reputation as a pragmatic conservative with close ties to Supreme Leader Ayatollah Ali Khamenei.

Saudi Arabia forms precious metals and gemstones association to boost non-oil sector

Saudi Arabia’s Ministry of Industry and Mineral Resources has launched a new non-profit association to govern the precious metals and gemstones sector, Asharq Al-Awsat says in a report. The initiative is a strategic component of the Kingdom’s Vision 2030 plan, designed to diversify the economy away from oil dependence by developing non-oil industries. By formalising the sector, the government aims to create a more regulated and transparent environment, which is expected to attract foreign investment and enhance the Kingdom’s competitiveness as a regional economic hub, particularly in relation to established centres like Dubai. The association is intended to provide a framework for standardisation and professional development for local businesses, though it will also introduce greater compliance requirements. For international investors, the move signals a more structured and predictable market, potentially reducing risk and opening new commercial opportunities.

Egyptian president describes Israel’s war in Gaza as a ‘systematic genocide’

Egyptian President Abdel Fattah al-Sisi has stated that Israel’s war in the Gaza Strip constitutes a “systematic genocide,” according to a report in Asharq Al-Awsat. The statement from the Egyptian leader represents a sharp condemnation of the ongoing military operations and the resulting humanitarian crisis in the Palestinian territory. Sisi’s comment comes amid stalled ceasefire negotiations, in which Egypt has been a key mediator, and reflects growing regional frustration over the protracted conflict and high civilian death toll.

Israel-Poland diplomatic row deepens over Gaza criticism, raising economic cooperation concerns

A diplomatic row between Israel and Poland has escalated significantly after Israel summoned the Polish envoy over criticism of its military operations in Gaza, according to a report in Haaretz. The dispute, which centres on Warsaw’s invocation of its World War II history and a subsequent Israeli accusation of ‘distorting Holocaust memory’, carries notable economic implications. The severe diplomatic chill could jeopardise bilateral cooperation on economic and security fronts, creating uncertainty for businesses and potentially impacting investment between the two nations. This incident highlights the material risk that geopolitical tensions, fuelled by sensitive historical narratives, can pose to stable international commercial relationships.

Israeli president calls for no dialogue with Hamas until all hostages are released

During a visit to Riga where he was welcomed by Latvian President Edgars Rinkēvičs, Israeli President Isaac Herzog called on the international community to cease all communication with Hamas until the group releases all remaining hostages held in Gaza, according to a report in Israel National News. Herzog’s statement reinforces Israel’s official stance that the return of the hostages is a paramount war aim and a precondition for any shift in strategy. The call pressures international mediators to align with Israel’s position, which directly counters Hamas’s own conditions for a hostage release, such as a permanent ceasefire and the withdrawal of Israeli forces.

South Africa’s diplomatic push against Israel raises geopolitical risk for markets

South Africa is publicly urging more countries to oppose Israel’s military conduct in Gaza, a move that amplifies its legal challenge at the International Court of Justice and significantly increases geopolitical risk in West Asia, Asharq Al-Awsat says in a report. From a market perspective, this diplomatic escalation could further isolate Israel economically, potentially impacting foreign direct investment, trade relationships, and the valuation of Israeli assets. The growing international pressure, particularly if supported by other nations, may also create uncertainty for multinational corporations operating in the region and could lead to volatility in energy markets if tensions spill over. This development places Israel’s key Western allies in a difficult position, with potential implications for defence contracts and economic aid, adding another layer of risk for investors to monitor.

Heritage commission reports 24 encroachment violations in July

Saudi Arabia’s Heritage Commission identified and reported 24 violations involving encroachment on protected archaeological and heritage sites in July, according to a report in Asharq Al-Awsat. The reported infractions typically consist of unauthorized activities such as construction, digging, or land alteration within designated heritage zones. This monthly reporting highlights the commission’s continuous monitoring and enforcement efforts to safeguard the nation’s cultural assets, particularly as the region undergoes significant urban and infrastructure development.

Egyptian senate election commences, reinforcing policy continuity for markets

Voting has commenced in Egypt’s senate election, a process that is widely seen as reinforcing the political stability under President Abdel Fattah el-Sisi’s government, Asharq Al-Awsat said in a report. From a market perspective, the election is significant not for its democratic competitiveness but for its role in ensuring policy continuity and institutional predictability. This perceived stability is a key factor for regional allies and investors, particularly from Gulf states, who prioritise a stable governance structure in Egypt. The re-establishment of the senate, which was abolished in 2014 and reinstated through 2019 constitutional amendments, is part of a broader institutional consolidation that supports Egypt’s strategic economic role in the region, especially in relation to developments in Libya, Sudan, and the Eastern Mediterranean.

Norway’s prime minister calls for oil fund to review holding in Israeli company

Norway’s prime minister has called for the nation’s sovereign wealth fund to review its holding in an Israeli company, signalling a potential divestment based on the fund’s ethical guidelines, according to a report in Asharq Al-Awsat. The request directs the Government Pension Fund Global’s Council on Ethics to assess whether the unnamed company’s activities violate its investment framework, which prohibits involvement in severe human rights violations. This development occurs amid heightened international scrutiny of Israel following the Gaza conflict and reflects a growing trend of institutional investors applying ESG (Environmental, Social, and Governance) criteria to holdings in conflict zones. While a potential divestment may have a limited direct financial impact, it carries significant reputational risk for Israel and could encourage other major investors to re-evaluate their portfolios, potentially affecting capital flows and investor confidence in the region.

Saudi and Sri Lankan officials discuss Islamic cooperation in Riyadh

Saudi Arabia’s Minister of Islamic Affairs, Sheikh Abdullatif Al-Asheikh, hosted Sri Lankan Ambassador Omar Lebbe Ameer Ajwad and his delegation in Riyadh to discuss topics concerning Islamic affairs and ongoing cooperation between the two nations, according to a report in Arab News. Following the discussion, the Sri Lankan envoy praised Saudi Arabia’s role in supporting Islamic causes. Ambassador Ajwad specifically commended the Kingdom’s efforts to promote the values of tolerance and moderation on a global scale, noting its particular impact in Sri Lanka.

Alleged Azerbaijani ISIS member on trial for attempted synagogue attack in Baku

An Azerbaijani national with alleged ties to ISIS is currently on trial for planning an attack on the Mountain Jews Synagogue in Baku, The Times of Israel said in a report. The suspect is accused of plotting to use a Molotov cocktail in the attack, which was planned for December of the previous year.

Israeli rabbinical court grants divorce after 22 years following state intervention

A rabbinical court in Safed, Israel, has granted a divorce in what has been described as a landmark case, ending a 22-year refusal by the husband to provide a religious bill of divorce, known as a ‘get’, Israel National News says in a report. The resolution was achieved only after extraordinary state intervention, which included the imposition of criminal charges against the husband and a subsequent conditional pardon from the Israeli President. The case involved a woman classified as an ‘agunah’ (‘chained woman’), unable to remarry under Jewish law without the divorce document.

Israel’s Shin Bet denies inmate’s request to attend sister’s wedding, citing security concerns

Israel’s Shin Bet security agency has denied a Jewish inmate’s request for temporary release to attend his sister’s wedding, citing fears of potential unrest, according to a report in Israel National News. The denial was issued despite the inmate’s reported positive behavior in prison and a pending early release hearing. The inmate’s attorney, representing the legal aid group Honenu, has condemned the decision, calling it “unjust persecution”.

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