Diplomacy

When Bamboo Diplomacy Meets the American Tech Stack

Vietnam’s sovereign AI relies heavily on open-weight models developed in the United States. However, as Washington and Beijing are moving to restrict access to these technologies, Hanoi’s bamboo diplomacy offers little protection to its AI ambitions.

In mid-July, Vietnam approved its National Digital Transformation Strategy for 2026-2030 under Decision 1266/QD-TTg, and the National Data Strategy under Decision 1308/QD-TTg. Both strategies aim for national digital sovereignty, domestic self-reliance and state-level data governance on the assumption that artificial intelligence (AI) models would remain a public good. Within days, the United States (U.S.) and China signalled their readiness to restrict access to those models.

Made in America

Vietnam’s current AI systems are modified versions of foreign tech. On the ground, Viettel, the state military telecom giant spearheading Vietnam’s AI goals, announced its VT-Super-120B-A12B Vietnamese language model had matched the accuracy of major global models of similar size. It was built by adapting Nemotron, Nvidia’s freely downloadable model family, to Vietnamese data. Viettel’s earlier model was also built on Meta’s Llama 3, trained with Nvidia tooling, and run on a cluster of 22 DGX B200 supercomputers at its Hoa Lac centre.

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Moreover, VNG’s GreenNode subsidiary introduced GreenMind-Medium-14B-R1, the first open-source Vietnamese reasoning model built to run on Nvidia’s software and a single Nvidia H100 graphics chip. Meanwhile, FPT Corporation committed $200 million to build its AI factory powered by Nvidia hardware.

At the state level, Vietnam’s Ministry of Science and Technology met with senior executives from Qualcomm in Hanoi on July 17. Deputy Minister of Science and Technology Hoang Minh and Qualcomm’s Executive Vice President Durga Malladi discussed expanding cooperation in AI semiconductors, research and development, and workforce training.

While Vietnam has made its bets on the U.S. for its AI ambitions, other Southeast Asian countries are leaning towards China. Indonesia’s Indosat Ooredoo Hutchison partnered with AIonOS on DeepSeek-powered services, and Malaysia’s Communications Ministry launched a sovereign full-stack AI ecosystem running on Huawei hardware.

Outside Two Blocs

AI governance is dividing into two blocs. One bloc is the U.S.-led Pax Silica initiative, which coordinates trusted supply chains for semiconductors, critical minerals and AI infrastructure with 24 signatories. Singapore, the Philippines, India, Japan and South Korea are among them. The Philippines converted membership into commitments by agreeing in April 2026 to a 4,000-acre economic security zone in the Luzon economic corridor designated as the initiative’s first AI-native industrial hub.

The other is the Chinese-backed World Artificial Intelligence Cooperation Organization, signed into existence in Shanghai on July 16 by 29 governments. The membership also includes Russia, Belarus, Cuba, Venezuela and most of Central Asia, alongside Vietnam’s neighbours Laos, Cambodia and Myanmar.

Membership in either bloc could offer access to supply chains, technical assistance and software distribution during a diplomatic crisis.

However, Vietnam belongs to neither group because of its long-standing bamboo diplomacy, a policy of balancing relations between Washington and Beijing without taking sides. This leaves Hanoi in an awkward position. Vietnam depends heavily on American technology, but enjoys none of the guarantees or protections of one.

Weaponising Access

Export controls on chips work because processors are physical goods, subject to customs enforcement. On May 31, the Bureau of Industry and Security extended licensing requirements to any China-parented buyer worldwide, closing loopholes in Singapore and Malaysia.

AI models do not behave the same way. Access to a closed system can be revoked instantly by flipping an application programming interface (API) key. For example, on June 12, Anthropic suspended access to its Fable and Mythos models to comply with U.S. Commerce Department export controls, restoring access only on July 1 after those controls were lifted. Such events largely explain why governments prefer AI models they can host locally.

In contrast, an open-weight model, once downloaded, cannot be recalled by any foreign regulator. Instead, global superpowers exert control by forcing major tech companies and code-sharing platforms to block downloads from specific regions or countries. They can also pressure developers to restrict future model updates to dodge penalties from Washington or Beijing.

This fight over AI access is now an open battle. On July 16, Chinese startup Moonshot AI unveiled Kimi K3, a 2.8-trillion-parameter model that independent evaluators say matches top American models at a fraction of their operating cost. On July 21, Treasury Secretary Scott Bessent signalled that Washington could sanction Chinese tech firms, citing American-model watermarks found inside Chinese ones. Days later, China’s Ministry of Commerce called the investigations groundless, threatened countermeasures, and began consulting Alibaba, ByteDance and Z.ai on export controls covering model weights, training data and chip designs.

Why It Matters

For years, nations have built digital capacity cheaply and quickly by customising open-weight AI models. Kimi K3 seemed to promise that era would continue. Instead, the geopolitical fallout exposed the fragility of relying on superpower goodwill.

For Vietnam, the real threat is getting left behind. Washington or Beijing cannot delete the AI models already sitting on Vietnamese servers. What they can block is future releases. If both superpowers restrict open-weight models, Vietnam’s AI ecosystem gets stuck using today’s tools while the rest of the world moves forward. A national tech stack built on frozen updates decays one generation at a time. States that have not localised model weights face an even harsher reality. Their access relies on live connections and downloads that can vanish overnight with a new policy.

At its core, this is a problem of time. Vietnam’s bamboo diplomacy relies on having time to adapt. Trade deals and defence agreements move slowly, giving Hanoi room to bend without breaking. AI access, however, moves instantly as access disappears with a revoked key or a blocked download link.

Diplomatically, Vietnam tries to stay neutral at all costs. However, its technology does not try to do so. All of its major AI models are built on American weights, run on American chips, and improve when American companies release new ones. Vietnam acts as if it can delay picking a side, but with every new AI update or blocked release, the cost of delay becomes more expensive. In the past, diplomatic pressure moved slowly through international summits. Today, that pressure speeds up with every new model release.

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Can Bangladesh Reset Ties With India?

Dhaka Seeks a New Start

Bangladesh Prime Minister Tarique Rahman told India’s envoy on Monday that the two countries needed to create a “conducive environment” to strengthen bilateral ties, as Dhaka continues to press New Delhi over the politically sensitive issue of ousted Prime Minister Sheikh Hasina’s exile in India.

Rahman’s remarks highlight his six-month-old government’s efforts to stabilise relations with its largest neighbour while seeking progress on issues that have remained major sources of tension since Hasina was ousted in August 2024.

While Rahman has sought closer relations with India since taking office, Monday’s comments were his first to explicitly stress the need to improve the broader environment for bilateral engagement.

Hasina’s Extradition Remains a Key Dispute

Rahman made the remarks during his first meeting with India’s new High Commissioner to Bangladesh, Dinesh Trivedi.

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Rahman “emphasized the need to create a conducive environment to further advance the bilateral relations between the two countries”, Bangladesh’s Prime Minister’s Office said in a statement following the meeting.

Bangladesh also urged India to expedite Hasina’s extradition.

Hasina, who has remained in India since the collapse of her government, is facing legal proceedings in Bangladesh and was sentenced to death in November.

Hasina’s Return Raises Fresh Tensions

The extradition request came days after Hasina interacted with the media for the first time since fleeing Bangladesh.

During an online audio conference, she reiterated that she would return to Bangladesh in December, drawing renewed attention to her continued presence and political activities in India.

Bangladesh’s foreign ministry strongly criticised the event, saying that India’s decision to allow Hasina to participate was deeply hurtful and that Bangladesh was outraged.

India has said it is examining Bangladesh’s extradition request in accordance with its legal and judicial procedures.

India Signals Willingness to Engage

In a post on X, the Indian High Commission said Trivedi reiterated India’s commitment to working with Bangladesh in a “positive, constructive and forward-looking manner”.

The exchange reflects the delicate balancing act facing both governments as they attempt to preserve bilateral ties while disagreements over Hasina’s future continue to complicate relations.

Can the Relationship Move Beyond Hasina?

For Dhaka, securing Hasina’s extradition remains a politically sensitive issue, while for New Delhi, any decision on the request carries broader implications for its relationship with Bangladesh and the country’s evolving political landscape.

Rahman’s call for a “conducive environment” suggests that Dhaka is seeking to prevent the dispute from overwhelming wider bilateral relations.

For India and Bangladesh, cooperation on broader areas of mutual interest will increasingly depend on whether the two sides can manage the Hasina issue without allowing it to become a permanent obstacle to engagement.

With information from Reuters.

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Holocaust – Book Review – Modern Diplomacy

A chapbook by Henry Opeyemi 

Publisher: Felis Catus Press

“The purpose of literature is to turn blood into ink.”

T.S. Eliot

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Henry Opeyemi is an oracle, and this chapbook is a miracle of sorts; it is a prayer of consolation, a hymn, a psalm, a song that gives birth to awakening after awakening, enlightenment after enlightenment. It starts with conscientising and ends by raising a phoenix-like awareness of boyhood and its challenges on the African continent. Where Rumi, Khalil Gibran, Weldon Kees, Mzi Mahola, and Ken Saro-Wiwa walked, where Rethabile Masilo walks, now Henry Opeyemi walks alongside these giants. There was Derek Walcott, Langston Hughes, those constellations feeding galaxies, and now there is Henry Opeyemi.

Perhaps all poets have an innate sense of clairvoyance. They can recognise the pains of the land, the masculine and feminine pains of the vessel of an African body, the psychological torment, the mental despair, the stigmatized struggle, the social alienation, the estrangement from the land of our ancestors, and the unbearable loneliness that every waking moment a poet experiences, lives with, suffers from, and the devastation of the internal landscape of the wounded children of Africa. Yes, yes, yes. Henry Opeyemi has turned blood into ink, and the veins are enriched with shelter.

These poems, each one “peeling itself into joy” (from the poem, Wanderers on pg.5).

This manuscript cleanses like the sea. Writing is a spiritual act, a spiritual dance. It is meditative and comes with instructions. It is sacred. When the hand of God moves through the pen, the poet must obey, and Henry Opeyemi has obeyed. The title of this chapbook speaks about black vulnerability, black stigma, the rallying cry of injustice and inequality, systemic racism, the undertow of the vision of poverty-stricken, disenfranchised and marginalised Africa. Henry Opeyemi writes about miracles in the same breath that he confronts suicide ideation, and when he writes, as he does in his dedication, “of the land of his youth”, he is addressing the social ills of the day, he is speaking to every man, woman, youth and child on the African continent. 

The dedication is a searing polemic, a testimony to a time that came before, and that sadly, heartwrenchingly still exists. The bittersweet river of the sands of time through the hourglass, the tapestry of exile, the memory of the silent witness, the memory of the historian and recorder and poet, the novel dispensation that we are living and co-existing in with the pains of a wandering soul, and history, have not erased anything. We, as African poets, living on the African continent beset with problems of despair and conflict, a continent ravaged by “hungry bowls” as the poet writes, we are the angry souls, the grief, heartbreak and emptiness of our rages.

There is beauty in the poetic sense and sensibility of Henry Opeyemi, and a sense of isolation. Every poet from this continent writes about what we have faced, endured, survived (colonialism, liberation, independence, civil war), and the terrible price we have had to pay, the debts of love of our mothers, the considerable debts of love of the maternal figures in our lives. There is the moral distress, the psychiatric distress, and cry of the poet, the language of moral decay in these verses, and the injury, the sickness, the mental tension, the utter mental turmoil and devastation, and the moral distress of the decay of the mind, of the psychological framework, of the alienation, the social ineptitude and isolation, the rejection from the church, from the community, from society who has labeled the citizens and inhabitants of African descent as interlopers, from the immediate and maternal and paternal family of the individual, of the poet.

Henry Opeyemi is the poetic version of Moses Molelekwa, and in his verses abound “genes and spirits”, ancestral kingdoms and bloodlines.

Every African writer, every African novelist and African poet who lives on the continent and finds themselves elsewhere in the world, writes about stigma, whether they acknowledge this consciously or subconsciously. It is written on the blueprint of our consciousness. Henry Opeyemi (remember this name) writes about the wounded child, the boy, the youth’s fractured sense of self and the youth’s spoiled identity, marginalised identity, wanting to seek validation and approval from the powers that be, from the same gender parent, from adult supervision, from their contemporaries, from leaders, from mentors. Every poet is a wanderer, a directionless nomad, a seeker, a believer if he has found the certainty of faith, of religious instructions and meditative practices. When I write, I write as an African, who lives on the African continent first and foremost; secondly, I write as a woman.

On these pages, a particular tenderness is personified in the writing. The wound is sacred and as omnipresent as the omega, and the grief our mothers have carried is a sacred kind of grief that their cells carried when they were in the womb of the maternal grandmother. The mother-figure is the portal, the origin of humanity. It is where the tension and spark of history coincide with the psychological repair, release and repair of life. 

The poet serves grief, heartbreak, their loneliness on a silver platter to humanity, like a beacon, an anchor, a lighthouse in the storm, like the being of light, like daybreak, like an oyster it is consumed, eaten, studied, investigated, and it is this noble endeavour, the practice of writing poetry about grief, heartbreak, and loneliness, that serves us, our collective humanity, exile and history, that is a remainder of colonialism that will last the test of time, that will serve as proof of evidence that we existed, that we were here, that this was our collective emotional pain on the face of the African continent.

The grief of Africa is, unfortunately, not bloodless. Even her tears are, in fact, tears of blood, of war, of strife, of conflict, of genocide. Poetry is our only method of self-defence. It is the survival, coping and defence mechanism of the novelist, the journalist, the filmmaker, the editor, most of all, the poet. It always has been since the onset of slavery and colonialism and independence. Henry Opeyemi does what poets have done before and after colonialism, he discusses emancipation, personal freedom, personal growth, missionary education, liberation, self-improvement, his youth, his Africa, he addresses the ritual of bone, blood, bowl, the question of God and religion, yes, how immortal religion defies and defines us, guides and interrogates us, he mentions the roles of Big Pharma, and the use of pharmaceuticals in society, are they of help or hindrance? He speaks about the mother-figure, the abandonment of Eve, the resurrection of Lady Macbeth on these pages. The mosque becomes an education, the mind of the young intellectual like a feverish young tree, eager for verdant-green growth, branches like limbs, eager to be acknowledged in a garden of other poets, all vying for attention and literary prizes, or, or, humility, imaginative grace, which is, to all intents and purposes more powerful than attention and literary prizes. 

Creative writing, the practice of writing poetry, is an intellectual pursuit. It is the cultural endeavour of the modern-day philosopher, and all poets are wanderers for an eternity of time.

Sidenote: Henry Opeyemi, welcome to the African Renaissance. May you mentor other poets, you, young poet, young leader, young intellectual. Africa is in good hands. Be, go forth, onwards and upwards; be as all princes from this continent who write poetry; be King of the World. Take the empire back. Build your own empires of gold from the dust of the colonial masters, from the powers that be.

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The New Test of US-Iran Diplomacy

The 14-point Islamabad Memorandum of Understanding between the United States and Iran deserves cautious support, not celebration. Its most important promise is immediate and permanent cessation of military operations on all fronts, including Lebanon. That is a serious achievement if it holds. The reported US-Iran text also commits both sides to avoid threats or use of force and to respect sovereignty. But wars do not end because officials announce elegant clauses. They end when armies, proxies, navies, banks, inspectors and political leaders behave differently the next morning.

The reported Versailles signing, with President Macron nearby, gave the accord theatrical weight. The reported confirmation by Iran’s Foreign Ministry gave it visibility in Tehran. Yet the title “Islamabad” may be the most revealing symbol. It suggests that diplomacy around Iran is no longer owned by Washington and Europe alone. Pakistan, Qatar, Oman and Gulf states now matter. That is healthy. But symbolism cannot replace sequencing. A memorandum is useful only if it becomes a disciplined path toward a final settlement.

Hormuz is the pressure point

The Strait of Hormuz is the economic heart of this agreement. The International Energy Agency describes it as one of the world’s critical oil chokepoints, so restoring commercial shipping is a global necessity. The MOU’s promise of safe, toll-free passage for 60 days can calm markets, but it cannot settle maritime governance. Iran’s future talks with the Sultanate of Oman and other littoral states must produce rules on fees, inspections, de-mining, escorts and disputes. Without that, Hormuz remains a bargaining chip, not a secure passage.

The most controversial part is economic. Washington would provide waivers for Iranian oil exports, make frozen assets usable, avoid new sanctions during talks and support a reconstruction plan of at least $300 billion. This could be pragmatic statecraft or a strategic mistake. The OFAC Iran sanctions system affects banks, insurers, traders and shippers. Recent State Department sanctions show how aggressively Iranian petroleum networks had been targeted. Relief must therefore be sequenced with measurable action. If Tehran receives benefits before verification, critics will call it capitulation. If Washington delays relief after compliance, Tehran will call it bad faith.

Nuclear language cannot stay vague

Iran’s renewed pledge not to build nuclear weapons is necessary, but not enough. The decisive issue is the future of enriched material, enrichment activity and inspection access. Any final deal must put IAEA Iran monitoring at the centre. The IAEA’s NPT safeguards framework and the Non-Proliferation Treaty offer the right balance: Iran has civilian nuclear rights, but the world has a right to credible assurance that military pathways are closed. Down-blending enriched material under inspection may be a start. It cannot be the finish line.

Including Lebanon in the ceasefire is wise, but risky. The promise to protect sovereignty echoes the UN Charter. But Lebanon has long suffered from the gap between formal sovereignty and armed reality. If Hezbollah, Israel, Iran or any other actor treats Lebanon as a loophole, the ceasefire will collapse at its weakest seam. The final text must clarify what “all fronts” means, how non-state armed groups are restrained, and what happens if a party violates the ceasefire through an ally.

The final agreement must be public and enforceable

A binding UN Security Council resolution is essential, but it should not rubber-stamp ambiguity. The history of Resolution 2231, wider UN sanctions practice, IAEA reports to the Security Council, and the UN record on Iranian ballistic missiles shows why detail matters. The final agreement must define deadlines, verification triggers, consequences for breach and the exact sanctions schedule. The Guardian’s analysis and Iran International’s reporting underline the same reality: the MOU buys time, but time can be wasted.

The Islamabad MOU is not peace. It is a pause with possibilities. It should be supported because war has already proved disastrous, but it must be judged by performance: ceasefire maintained, Hormuz reopened, sanctions relief sequenced, nuclear material verified, Lebanon protected and the final deal anchored in law. Anything less would turn a promising memorandum into another diplomatic mirage.

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Kremlin Says European Leaders Influenced Trump on Ukraine at G7 Summit

The war between Russia and Ukraine has entered its fifth year, with military operations continuing alongside intermittent diplomatic efforts to reach a settlement. The United States and European allies remain Ukraine’s principal supporters, providing military, financial, and political backing.

At the recent G7 summit, Ukrainian President Volodymyr Zelenskiy met U.S. President Donald Trump and other Western leaders to discuss the war and prospects for peace negotiations. Following those discussions, Trump expressed optimism that a peace deal could eventually be reached.

What Happened?

Senior Kremlin aide Yuri Ushakov said European leaders likely influenced Trump’s views on the Ukraine war during the G7 summit.

Ushakov suggested Trump had been given misleading information about developments on the battlefield and rejected claims that Ukraine’s recent drone operations had significantly improved Kyiv’s military position.

The Kremlin official also said Moscow still expects visits from Trump’s envoys, including Steve Witkoff and Jared Kushner, although no timetable has been announced.

Key Statements

Kremlin Position

  • European leaders are exerting an “unhelpful influence” on Trump regarding Ukraine.
  • Russia believes Trump may have received inaccurate assessments of the battlefield situation.
  • Moscow maintains that Ukraine’s military position has not improved as claimed by Kyiv and its allies.

Trump’s Position

  • Trump said after meeting Zelenskiy that Russia should make peace with Ukraine.
  • He described discussions at the G7 as constructive.
  • Trump has continued to signal interest in facilitating a negotiated settlement.

Why It Matters

The comments offer insight into how Moscow views Trump’s evolving position on the war and the role of European leaders in shaping Western policy.

Russia appears keen to preserve direct communication channels with Trump while simultaneously pushing back against narratives advanced by Ukraine and its European supporters. The remarks also suggest the Kremlin remains attentive to potential diplomatic openings involving the United States despite ongoing military operations.

The episode highlights the growing importance of diplomacy and messaging as all sides attempt to influence future peace discussions.

Stakeholders

  • Donald Trump
  • Volodymyr Zelenskiy
  • Vladimir Putin
  • Yuri Ushakov
  • European G7 leaders
  • U.S. diplomatic envoys Steve Witkoff and Jared Kushner
  • Russian and Ukrainian armed forces

What’s Next?

  • Potential visits by Trump’s envoys to Moscow for further discussions.
  • Continued efforts by Ukraine and European allies to secure stronger U.S. backing.
  • Russian attempts to influence Washington’s understanding of battlefield developments.
  • Further diplomatic contacts aimed at exploring conditions for a possible peace framework.
  • Monitoring whether Trump’s public optimism translates into concrete negotiations.

Analysis

The Kremlin’s comments reveal an important strategic calculation: Moscow wants to criticize European influence on Trump without alienating Trump himself.

By describing Trump as a strong leader who ultimately forms his own views, the Kremlin is attempting to preserve a working relationship with the U.S. president while casting doubt on information coming from Kyiv and European capitals. This messaging suggests Russia still sees value in engaging directly with Trump and may believe he could play a decisive role in future negotiations.

The remarks also reflect a broader battle over perceptions of the war. Ukraine and its allies have highlighted successful long range drone strikes and attacks on Russian infrastructure as evidence that Kyiv retains leverage. Russia, meanwhile, seeks to project confidence and reject suggestions that its strategic position has weakened.

Looking ahead, the key question is whether the apparent diplomatic momentum emerging from recent meetings can produce substantive negotiations. Both Moscow and Kyiv continue to believe they have leverage, making compromises difficult. As a result, public statements from leaders and advisers are increasingly becoming part of a larger effort to shape the diplomatic environment before any formal peace talks begin.

With information from Reuters.

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Why Is Nepal Balancing China and India After Its Election Upset?

Nepalese Foreign Minister Shisir Khanal met Chinese Foreign Minister Wang Yi in Beijing on Monday, marking his first visit to China since Nepal’s Rastriya Swatantra Party won elections in March and formed a new government. The trip came just days after Khanal visited India, underscoring Kathmandu’s efforts to maintain strong ties with both regional powers.

China has long viewed Nepal as a key partner in its neighborhood diplomacy and has invested heavily in infrastructure projects under the Belt and Road Initiative. However, several projects have faced delays and financing disputes, limiting progress in bilateral cooperation.

Why It Matters

Nepal’s new government is reshaping the country’s foreign policy at a time of growing competition between China and India for influence across South Asia. While China has sought deeper economic and strategic engagement with Nepal, the Himalayan nation remains closely linked to India through geography, trade, employment, and cultural ties.

Analysts say Kathmandu’s willingness to engage both powers gives it greater diplomatic leverage. The new government has signaled that it wants improved relations with India while also keeping Chinese investment and infrastructure cooperation on track. This balancing strategy could strengthen Nepal’s bargaining position as Beijing and New Delhi compete for regional influence.

The visit also comes as China faces questions about the effectiveness of some Belt and Road projects in Nepal, including concerns over costs and implementation delays at major infrastructure developments such as Pokhara International Airport.

What’s Next

Nepal is expected to continue pursuing a balanced foreign policy that avoids choosing sides between China and India. Beijing will likely push to accelerate infrastructure cooperation and demonstrate the benefits of its investments, while India will seek to strengthen ties with Nepal’s new leadership.

The success of this approach will depend on whether Nepal can secure tangible economic benefits from both neighbors while maintaining its strategic autonomy. Upcoming decisions on infrastructure financing, trade cooperation, and anti-corruption investigations could shape the future of Nepal’s relationships with Asia’s two largest powers.

With information from Reuters.

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Inside the US-Iran Deal: What Both Sides Have Agreed So Far

The preliminary memorandum represents the first formal framework outlining how Washington and Tehran intend to move from military confrontation toward diplomacy.

While many details remain unpublished, statements from U.S., Iranian and Pakistani officials provide a broad outline of the deal’s structure.

Rather than resolving every dispute immediately, the agreement establishes a phased process aimed at reducing tensions first and addressing more difficult issues later.

The approach reflects the reality that both sides were able to reach consensus on ending hostilities more easily than on the underlying disputes that fueled the conflict.

Phase One: Ending the Fighting

The first stage focuses on immediate de-escalation.

According to mediator Pakistan, both sides have agreed to permanently halt military operations across all fronts.

The formal memorandum is expected to be signed in Switzerland, after which implementation would begin.

The objective of this phase is straightforward: stop active hostilities, reduce the risk of escalation, and create space for broader negotiations.

This represents the most immediate achievement of the agreement and is likely the reason markets reacted positively.

Reopening the Strait of Hormuz

The reopening of the Strait of Hormuz is arguably the agreement’s most significant economic provision.

The waterway serves as one of the world’s most important energy transit routes and has been at the center of global concerns throughout the conflict.

Both sides indicate that commercial shipping will resume following the signing of the memorandum.

The restoration of maritime traffic could:

  • Increase global oil supply.
  • Reduce shipping disruptions.
  • Ease pressure on energy prices.
  • Lower inflation risks for major economies.

However, questions remain over how the route will be governed.

Iran has suggested it will coordinate management of traffic with Oman, potentially giving Tehran a more formal role in overseeing one of the world’s most strategically important waterways.

That issue could become a future source of diplomatic friction.

The Nuclear Issue Has Been Deferred

The most controversial subject in the negotiations remains unresolved.

Rather than settling the nuclear dispute immediately, both sides appear to have agreed to address it during a 60-day negotiation period.

According to Iranian officials, Tehran would freeze nuclear activities during that time by halting additional enrichment and refraining from expanding facilities.

The long-term future of Iran’s nuclear infrastructure remains unclear.

Washington continues to emphasize inspections and preventing Iran from acquiring a nuclear weapon.

Tehran continues to insist that its nuclear program is peaceful and seeks recognition of its right to maintain civilian nuclear activities.

These competing positions are likely to dominate the next phase of talks.

Sanctions Relief Could Shape the Success of the Deal

Economic issues may ultimately prove as difficult as nuclear negotiations.

Iran expects meaningful sanctions relief as part of any final settlement.

Iranian officials have spoken about:

  • Temporary waivers on oil sanctions.
  • The release of frozen assets.
  • Financial support mechanisms.
  • A pathway toward lifting U.S. and international sanctions.

The Trump administration has signaled a more cautious approach.

Washington has indicated that sanctions relief will depend on Iranian compliance and future negotiations rather than automatic implementation.

This difference highlights one of the central tensions in the agreement: each side expects benefits on different timelines.

Lebanon Remains a Flashpoint

The agreement’s treatment of Lebanon illustrates how regional conflicts have become intertwined.

Iran views a ceasefire in Lebanon as a critical component of the broader settlement.

Lebanese political leaders have welcomed the inclusion of Lebanon in the framework.

Israel, however, has made clear that it does not consider itself bound by all aspects of the agreement and intends to maintain military positions in areas it views as strategically important.

This creates uncertainty about whether the Lebanon component can be implemented as envisioned.

The issue could quickly become one of the first tests of the agreement’s durability.

Why This Matters

The memorandum matters because it shifts the conflict from the battlefield to the negotiating table.

The agreement addresses several immediate concerns:

  • Rising energy prices.
  • Shipping disruptions.
  • Escalating regional instability.
  • Growing economic uncertainty.

At the same time, it leaves the most difficult questions unresolved.

This means the framework should be viewed as the beginning of a diplomatic process rather than its conclusion.

Its success will depend on whether negotiators can transform temporary understandings into binding commitments.

Key Stakeholders

  • United States
  • Iran
  • Pakistan (mediator)
  • Israel
  • Lebanon
  • Oman
  • European powers
  • Gulf Arab states
  • International energy markets
  • Global shipping industry
  • International Atomic Energy Agency (IAEA) and nuclear inspectors

What to Watch Next

  • Formal signing of the memorandum in Switzerland.
  • Reopening of the Strait of Hormuz.
  • Progress during the 60-day negotiation period.
  • Discussions on Iran’s nuclear program.
  • Decisions regarding sanctions relief.
  • Reactions from Congress and international partners.
  • Israeli actions in Lebanon and other contested areas.

The memorandum creates a framework for de-escalation, but its long-term success remains uncertain.

If implemented effectively, the agreement could stabilize energy markets, reduce regional tensions, and create momentum for broader diplomatic engagement.

However, many of the issues that triggered the conflict remain unresolved.

Nuclear enrichment, sanctions, regional security arrangements, and competing strategic interests are all likely to generate difficult negotiations.

The coming 60 days will therefore be more important than the announcement itself.

They will determine whether the framework becomes a durable peace process or merely a temporary pause in a conflict whose underlying disputes remain intact.

Analysis

The structure of the agreement reveals a pragmatic calculation by both Washington and Tehran.

Rather than attempting to solve every dispute at once, negotiators prioritized issues where agreement was achievable: ending active hostilities, reopening shipping routes, and creating a mechanism for future talks.

This approach reflects the political realities facing both governments.

For President Trump, reducing energy prices and ending a costly conflict addresses growing domestic pressure. For Iran, halting military operations while preserving room to negotiate on sanctions and nuclear issues offers a path to economic relief without immediate capitulation.

Yet the framework’s greatest strength may also be its greatest weakness.

By postponing the hardest questions, the agreement creates momentum for diplomacy but also leaves significant room for disagreement later. Nuclear enrichment, sanctions relief, and regional security arrangements are not peripheral issues—they are the core disputes that drove the conflict.

As a result, the memorandum should be viewed less as a peace treaty and more as a diplomatic bridge. It lowers immediate risks and creates opportunities for negotiation, but it does not yet resolve the strategic rivalry between the United States and Iran.

Whether this becomes a historic breakthrough or a temporary truce will depend on what happens after the signatures are placed on the document. The real negotiations are only beginning.

With information from Reuters.

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Exploitation Lies Behind a Veil of Diplomacy in Iran

Behind a veil of good-natured diplomacy, American adversaries are exploiting the conflict in Iran by gaining insights, strategic lessons, and geopolitical power while the United States wages feckless war against the Middle Eastern theocracy. Beyond the bombings, the blockade, and the oil prices, Russia and China keenly watch how America struggles, succeeds, and scrambles. In doing so, these adversaries are leveraging the conflict to challenge America’s readiness, aid its adversaries, and gain invaluable intel on America’s successes and failures.

The concept of observing a conflict to acquire critical intelligence on how to best conduct combat is not unique to the war in Iran. For example, in the Russo-Ukrainian War, America has gained indispensable knowledge on the most and least effective tools of 21st-century warfare, including information on the power of unmanned aerial systems. With the war in Iran, though, Russia and China are the scientists, and America is the experiment. The Middle East is now a testing ground for cutting-edge drone swarm technologies and a catalyst for how smaller powers can effectively deny their adversaries from accomplishing their objectives—a lesson that China is certainly eager to learn about for a possible conflict over Taiwan. Therefore, when America wages war against Iran, there are consequences that are crucial to recognize, and one of those consequences is that the United States is inadvertently empowering and informing its adversaries.

Maintaining its signaled commitment of multipolarity and geopolitical neutrality, China’s Foreign Ministry spokeswoman Mao Ning commented, “…China…has been making active efforts to promote ceasefire and peace…we will continue playing an active role in restoring…tranquility to the Middle East…” Reality demonstrates that this is false. China is discreetly gaining intelligence on the U.S. military’s readiness, pacing, and warfighting strategies. Furthermore, China has directly supported Iran, providing anti-missile weaponry, building blocks for ballistic missiles, and invaluable military intelligence to the Iranian Revolutionary Guard Corps. Instead of promoting peace and tranquility, these actions are designed to empower Iran and keep America locked in the struggle, weakening the country and allowing China to acquire more intelligence on U.S. readiness. Despite China’s claimed intentions, it’s clear that the nation is bolstering Iran’s strength and sustaining its defenses. Even from a domestic point of view, these actions are increasing domestic American division and the depletion of America’s defense resources. The conflict with Iran is not limited to Iran; by proxy, it’s with America’s foremost adversaries, too.

Similarly, Russia has provided critical support to Iran in the form of targeting intelligence, which Iran couldn’t have otherwise acquired. Shahed drones, assets that have proven to be exceptionally effective against western defenses, are manufactured in Russia’s Alabuga Special Economic Zone and are being provided to Iran by Russia. Contradicting these actions, a statement by the Russian Ministry of Foreign Affairs declared that the country “…stands ready to assist in advancing peaceful solutions grounded in international law, mutual respect, and a balanced consideration of interests.” But equipping Iran with efficacious tools of war is not a peaceful solution. Giving the nation targeting information cannot be construed as a neutral or geopolitically insignificant act. In reality, America’s adversaries are taking an active, hands-on approach to the war in Iran, indirectly but clearly aiding the nation and actively working against U.S. goals.

In response to this tacit yet significant aid to Iran, the natural response for America should be to publicly highlight the hostile actions of its adversaries. But the United States has been hesitant, if not downright unwilling, to do so. For example, Matthew Whitaker, the U.S. Permanent Representative to NATO, commented that “China certainly is not participating and is not aiding and abetting the Iranian demise…” Separately, he claimed, “There’s no indication that we can talk about publicly that the Russians are participating with the Iranians.” Public investigations, though, have proven both those assertions false. The trepidation of the United States to clearly and confidently condemn its adversaries’ belligerence in the region is an enormous blunder of strategic communications. Contrasting this, Russia and China have simultaneously and aggressively pursued campaigns of condemnation to weaken America’s global power. For example, Russia has often claimed that certain U.S. support to Ukraine may constitute an act of war; China strongly condemned recent American intervention in Venezuela as violating the international laws by which America claims to be guided. U.S. adversaries are eager and willing to strategically undermine and criticize U.S. actions, yet America is unwisely unwilling to do the same.

Russia’s and China’s cooperative aid to Iran demonstrates that the conflict is, in many senses, between world powers. A new ‘axis of resistance’ against Western liberalism is developing, and allowing American adversaries to act without denunciation is a failure of strategic communications and allows these nations to act with undeserved impunity. As the United States continues to wage war against Iran, it’s crucial to recognize that every bomb America drops, every mission American soldiers complete, and every destroyed military asset is a datapoint that U.S. adversaries will exploit. Russia’s and China’s critical support to Iran is hostile and counter to American goals; ignoring this is strategically imprudent. Beyond the explosions, America’s adversaries are watching—and acting. It’s the responsibility of the United States to expose those actions for what they really are.

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The Centrality of India-US Ties in Shaping Quad’s Future

With its recent Foreign Ministers’ meeting in Delhi, the Quad has again shown it remains active, defying widespread rumours of collapse.

While the Japanese and Australian foreign ministers highlighted their countries’ strong relations with India and the Quad’s central role in shaping the Indo-Pacific security architecture, Marco Rubio’s four-day visit to India was the most noteworthy aspect, as he repeatedly emphasized the significance of Indo-US relations.

Speculations about the Quad’s potential dissolution, reminiscent of developments in the 2000s, were fuelled by the postponement of the leaders’ summit, President Trump’s apparent lack of interest, and a more conciliatory approach toward China. Even so, the meeting reaffirmed the US’s ongoing engagement in the region and its support for the Quad.

The Quad’s momentum currently faces its principal challenge not from India’s or the US’s relations with Australia and Japan, but from a complicated Indo-US relationship.

Two factors show why India-US relations are central to the Quad’s minilateral framework.

Over the past year, India has faced unprecedented criticism from the US administration, particularly from President Trump, who has been critical of India on trade and security fronts. Issues such as tariff disputes, H-1B visa restrictions affecting Indian professionals, deepening US relations with the Pakistan Army, and increased US involvement in Bangladesh and Nepal have contributed to growing distrust about the US’s willingness to cooperate with India and promote stability in the Indo-Pacific.

In response to several contentious statements by President Trump directed at India, Rubio’s visit served as a diplomatic effort to restore bilateral relations. His repeated emphasis on India’s role as a strategic partner signalled a commitment to improving ties. While a single visit cannot resolve all tensions from the past year, it reassures India and reduces the risk of further deterioration.

The Quad Foreign Ministers’ meeting became feasible only after India and the US undertook concerted efforts to revive bilateral relations. Notable examples include India’s invitation to the US to attend the AI Impact Summit in February 2026, ongoing trade agreement negotiations, and the US decision to invite India to the Pax Silica initiative. The meeting occurred only after a certain level of normalization had been achieved. Even so, a leaders’ summit is unlikely unless President Trump and Prime Minister Modi demonstrate a clear commitment to advancing India-US relations.

Second, without proactive American engagement, Japan, Australia, and India may develop their own trilateral regional strategies, perhaps with some Southeast Asian countries such as Indonesia, the Philippines, and Singapore. However, the impact of such an alternative would be limited and localized. Japan could take a greater role in sustaining and rebuilding regional economic frameworks, replicating the Trans-Pacific Partnership experiment. Still, due to constitutional and capacity constraints, Tokyo is unlikely to replace Washington as the region’s primary security guarantor soon.

Although the Quad’s resilience is maintained by the agency and commitment of Australia, India, and Japan rather than by exclusive US leadership, strong US involvement in the Indo-Pacific security mechanism will remain a cornerstone of the Indo-Pacific architecture.

China’s persistent assertive behaviour remains the central factor. It continues to employ coercive tactics and expand its influence in regions critical to the US and its partners, so the original motivations for revitalizing the Quad remain relevant. Although the US approach to China is evolving, the fundamental dynamics of US-China relations remain unchanged. In the long term, Washington will require frameworks such as the Quad to maintain stability in the Indo-Pacific and prevent the erosion of its strategic influence. Consequently, the Quad is likely to remain central to regional strategy, with India as a key partner.

The US Deputy Secretary of State Christopher Landau’s statement that the US is not going to make the same mistakes with India that it made with China 20 years ago must not guide Indo-US relations. The US needs India as much as India needs the US, and unlike China, India-US relations rest on shared values – democracy, freedom of speech, multiculturalism, and a common vision of maintaining a rules-based liberal international order. Both countries require mutually beneficial cooperation to advance their strategic objectives. Other Quad members and Indo-Pacific stakeholders also depend on collaboration between Washington and New Delhi to maintain strategic equilibrium and preserve the bloc’s cohesion.

The US regards India as a responsible stakeholder and a regional counterweight to China, especially after the limited outcomes of President Trump’s recent visit to China. Conversely, India depends on the US for advanced technology, strategic investments, and long-term defense needs. This mutual dependence makes both countries indispensable to each other, and significant short-term trade diversification is unlikely. Even if achieved, it would likely harm both parties.

The US must strengthen its engagement in the Indo-Pacific by leveraging the Quad and its member states to develop an effective regional strategy. Closer strategic coordination among Quad partners, particularly with India, is essential to this effort.

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‘Wolf Warrior Diplomacy’: Israel’s China Strategy in Peril  – Middle East Monitor

Israel’s balancing act that allowed it to reap America’s unconditional and, often, blind support, while slowly benefiting from China’s growing economic influence and political prestige, is already floundering.

Thanks to the heated cold war between the US and Chinese economic superpowers, the Israeli strategy of playing both sides is unlikely to pay dividends in the long run.

Soon enough, Tel Aviv might find itself having to make a stark choice between Washington and Beijing.  When US Secretary of State, Mike Pompeo, visited Israel on May 13, two items topped his agenda: Israel’s imminent illegal annexation of Palestinian land and the growing Israeli-Chinese economic ties.

Pompeo communicated his country’s stand on both issues, reflecting Washington’s long-standing policies regarding Palestine and China. In the case of Palestine, as with the rest of the Middle East, Washington seems to adhere to Tel Aviv’s agenda, often to the letter.  China is a different story.

READ: China rejects Israel’s planned annexation of West Bank

Two significant historical examples come to mind: one, is Israel’s attempt to sell China Israeli-made Phalcon airborne radar system, which relied heavily on American technology in the 1990s; a similar event transpired in 2005, this time concerning Israel’s Harpy anti-radar missile. On both occasions, Israel succumbed to American pressure and canceled both deals.

For the Chinese, Israel matters for two different reasons. One, Israel is a strategic stop in China’s Belt and Road initiative, China’s most significant economic project to date, ultimately aimed at turning Beijing into a center of global trade and financial activities. Two, China is hoping to fight the US on its own political turf in the Middle East – partly in response to the American ‘pivot to Asia’ strategy, which was initiated by the Barack Obama administration.

But the world – in terms of political and economic balances of power – after the coronavirus pandemic is likely to prove a different one when compared with previous years. China’s rise has been in the making for many years and the US political retreat and declining global outreach has been quite evident for some time. The isolationist policies of the Donald Trump Administration, coupled with Washington’s many China-related tantrums in recent years, are all indicators of the vastly changing political realities of a once-unipolar world.

"I will not miss the opportunity to annex the West Bank"- Cartoon [Sabaaneh/MiddleEastMonitor]

“I will not miss the opportunity to annex the West Bank”- Cartoon [Sabaaneh/MiddleEastMonitor]

A few years ago, Beijing had the time, patience, and resources to play a long-drawn geopolitical game in order for it to challenge the US’s global influence, whether in South America, Africa, or Israel.

The visit by China’s Vice President, Wang Qishan, to Israel in 2018, to “boost business ties”, was part of this Chinese strategy. That visit followed the signing, one year earlier, of the China-Israel Innovative Comprehensive Partnership. As of 2018, China-Israel trade has jumped to $14 billion and has grown exponentially ever since.

China would have been happy to carry on with that strategy for many years to come. Israel, too, would have played along, considering the lucrative financial returns from its China partnership.

READ: Israel ties to China may risk our ability to work with Tel Aviv

Indeed, despite Washington’s warnings against and, at times, explicit demands on Israel to refrain from giving Chinese companies access to fifth-generation infrastructure (5G) projects in the country, Israel labored to make China feel welcomed.

However, the global response to the coronavirus pandemic is likely to change this, as it has already accelerated the cold war between the US and China, pushing the latter to adopt a more aggressive form of diplomacy and pour massive sums into other countries’ economies to help them in their desperate fight against the COVID-19 disease.

The Chinese strategy is predicated on two main pillars: fortifying existing ties and solidarity with China’s allies or potential allies anywhere in the world, while pushing back against China’s foes, especially those who are participating in Washington’s anti-Beijing campaign.

The latter phenomenon is known as ‘wolf warrior diplomacy’. The ‘wolf warriors’ are Chinese diplomats who have, for months, pushed back with unprecedented ferocity against what they perceive to be US and Western propaganda.

READ: China’s ambassador to Israel found dead in Tel Aviv home

“We never pick a fight or bully others,” China’s Foreign Minister, Wang Yi, told reporters in Beijing on May 24, while explaining China’s novel approach to diplomacy. “We will push back against any deliberate insult, resolutely defend our national honor and dignity, and we will refute all groundless slander with facts,” the top Chinese official said firmly.

China’s new aggressive diplomacy, especially if it continues to define the country’s approach to foreign policy in the coming years, is unlikely to permit Israel to maintain its balancing act for much longer.

China’s ambassador to Israel, Du Wei, who was entrusted with implementing Beijing’s soft-diplomacy with Tel Aviv, died in his home only a few days following Pompeo’s visit to the country. Although Wei’s death was not – at least publicly – perceived to be the result of foul play, his absence, especially in the age of coronavirus and ‘wolf warriors’, might signal a shift in China’s approach to its economic and political interests in Israel.

On May 26, under American pressure, the Israeli Finance Ministry denied China a massive $1.5 billion desalination plant contract, awarding it to an Israeli company, instead.

This is the first time that the US has used its political and economic sway over Israel to curb Chinese influence in the country. China must be anxiously watching events unfold,   to see if US pressure on Israel will continue to undermine Beijing’s long-term strategy.

Deal of the century, embassy relocation, and the Golan Heights - Israel surely can't believe their luck? - Cartoon [Sabaaneh/MiddleEastMonitor]

Deal of the century, embassy relocation, and the Golan Heights – Israel surely can’t believe their luck? – Cartoon [Sabaaneh/MiddleEastMonitor]

The world’s quickly shifting balance of power and the US-Chinese unmistakable fight for dominance is likely to, eventually, force countries like Israel to make a choice, of wholly joining the American or the Chinese sphere of influence. It is all reminiscent of the American-Soviet Cold War, where much of the globe was divided into zones of influence operated by proxy from Washington or Moscow.

Balancing acts in politics only work if all parties are willing to play or, at least, tolerate the game. While this form of politics suited Israel’s interests in the past and was played, quite successfully for years by Israeli Prime Minister, Benjamin Netanyahu, the country’s balancing act is, possibly, over.

Between Washington’s precise demands to Israel to keep Beijing at bay, and the latter’s aggressive ‘wolf warrior’ diplomacy, Israel is facing a stark choice: remaining loyal to a fading superpower or diving into the uncharted waters of an emerging one.

The views expressed in this article belong to the author and do not necessarily reflect the editorial policy of Middle East Monitor.

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The Rodríguez Siblings Are Losing a Major Asset: Zapatero

It’s always spectacular to see a big shot getting caught. Especially when he’s made a long career at the top of an European democracy under a mask of respectability. And, oh so suddenly, it turns out he’s made a fortune dealing with a Latin American dictatorship.

The sequence was— as people love to say today—worth of a Netflix series. 

Hours before getting on another flight to Caracas, José Luis Rodríguez Zapatero decided to stay in Madrid once he knew he had just become the first former prime minister in the history of Spain’s 50-year-old democracy to be indicted for a crime. For those who turn on the phone in the morning across the Atlantic, when it is noon in Spain, the news of the indictment came as one bundle with the footage of Zapatero’s office being raided by an anti-corruption investigative unit of Spain’s National Police Corps, known as UDEF.

Zapatero was indicted by Audiencia National (an equivalent of the Supreme Court) for selling his influence to get a financial relief kit for an airline, Plus Ultra, the smallest of four Spanish carriers that received assistance from Madrid as a result of the demand-side shock during the pandemic. This company, with a fleet of seven aircrafts, was also the youngest of the lot, and had the particular feature of having inaugurated routes to Caracas in the annus horribilis of 2017, a time when international operators were withdrawing from the country en masse. As Armando.Info investigative reporter Roberto Deniz would reveal in December 2018, Plus Ultra’s majority stakeholders were from Venezuela.

Eight years later, Zapatero is being prosecuted over allegations of political influence peddling related to the €53 million bailout of Plus Ultra. He also faces charges of criminal conspiracy, document forgery and money laundering. The judge handling the case describes Zapatero as the head of “a stable and hierarchical influence‑peddling structure” meant to “obtain financial benefits as an intermediary, exerting influence over public bodies on behalf of third parties, mainly Plus Ultra.” At least six other individuals are under investigation, including Plus Ultra’s chairman, its CEO, and Alicante-based businessman Julio Martínez Martínez.

The UDEF report says Zapatero and Martínez were at the center of a structure of businesses and consulting firms meant to syphon money coming from China, Venezuela and Spain into his personal accounts.

This latter will be a key character in this story: Martínez Martínez is not only being accused of acting as Zapatero’s frontman in a number of entities that received payments linked to the Plus Ultra (et al) scheme. His own personal records, such as notebook annotations UDEF just made public, suggest he was fully aware of Zapatero’s business and political dealings with the Maduro regime. That evidence seems to point at both opaque trade deals (over Venezuelan light crude, gold, fuel, asphalt, which were the subject of US sanctions until recently) Martínez and Zapatero may have promoted, and knowledge about a number of high-profile political prisoners released this year. The son-in-law of Edmundo González, security expert Rocío San Miguel and opposition moderate Enrique Márquez (who has publicly praised Zapatero) appear mentioned. Martínez´s notes also provide previously undisclosed details about the contents of a constitutional reform Maduro toyed with, but never brought about after stealing the presidential vote in 2024.

All of this adds to the investigations about shady business in the pandemic that involved Spanish businessman Víctor de Aldama, former Transport Minister and PSOE Organization Secretary José Luis Ábalos, and his close advisor Koldo García. The trio famously met Delcy Rodríguez in the tarmac of the Madrid international airport, for a purported conversation over the sale of Venezuelan gold lingots, despite her being the subject of EU sanctions and therefore unable to step on European soil. These three Spaniards (with Ábalos and Koldo being amongst the closest collaborators of Pedro Sánchez in his primary campaign and early government) are the main actors in a series of corruption scandals that have been getting closer to the Spanish head of government, a darling of the International Left whose reputation has been boosted by a knack for antagonizing Donald Trump. But the former aides of Perro Sanxe have been arrested without bail and indicted (and will soon face a sentencing hearing). His brother is facing trial. His wife has also been indicted and is on the verge of facing trial. And now it looks like his political mentor will also face a lengthy process before Spanish justice.

Just after the Zapatero news broke in Spain, predictable reactions began to come across the political spectrum: bloodthirst at the Right, accusations of conspiracy at the Left. Then, the judge made public the 88-page file, fed with a probe that began in 2024, and the ambiance turned in a second. Many allies of the graft-plagued socialist government admitted that the accusations are solid, the evidence overwhelming, and the outlook quite bleak for Zapatero. The conspiracy theory that this was lawfare against the Sánchez government faded away. Spain’s paper of record, El País, traditionally aligned with Zapatero’s party PSOE, wrote a stern op-ed saying that the Sánchez government was forced to investigate this properly to prevent the “enemies of democracy” in the Far Right from charging against the democratic system. “Full cooperation with the judiciary, full respect for the presumption of innocence, and all my support for President Zapatero,” Sánchez said today. 

As you may have noticed, authorities have released more evidence this week. Spanish media ranging from the State-owned, left-leaning broadcaster RTVE to the investigative El Confidencial are carving out a map of the Zapatero network of sociedades mercantiles. While not all of these companies are under investigation, together they received an estimated €2.6 million between 2020 and 2025 from Chinese capital and entities under investigation.

The investigation will likely reveal more details about the dealings between the chavista regime, Zapatero and other politicians and businesspeople close to the Sanchista government.

The UDEF report says Zapatero and Martínez were at the center of a structure of businesses and consulting firms (under not-at-all pretentious names like Inteligencia Prospectiva and Análisis Relevante) meant to syphon money coming from China, Venezuela and Spain into his personal accounts. Money that looks, in many cases, like kickbacks. For instance, Whathefav, a social media agency owned by his two daughters, got a payment of half a million euros for creating a website and a promotional video for Inteligencia Prospectiva SL, which is owned by Guillemo and Domingo Amaro Chacón. These two are Spanish-Venezuelan citizens who happen to be the sons of a businessman involved in a case of insurance fraud with PDVSA. Inteligencia Prospectiva reported losses, but was paying juicy bills to other businesses of the same network, like Whathefav.

UDEF  also cites evidence of conversations between Domingo Amaro Chacón and Julio Martínez Martínez, from 2021 to 2024, discussing a deal with Minerven (coded as “comercialización de amarillo”), nickel reserves in Venezuela, a major tourism development project on La Tortuga Island, and what seems like efforts to promote the opening of the UAE embassy in Caracas (coded as “the desert guys”). All of this may have something to do with UDEF’s suggestion (reviewed here by The Objective) alleging that the Plus Ultra case might be linked to a money-laundering operation involving proceeds from the Venezuelan CLAP food-box scheme, as well as the shipment of 5-8 tons of gold from Caracas to Dubai.

Yes, it’s a lot. And we’re not even getting into other grim details, like reports that Whathefav received a €100,000 payment from the company behind VenApp, which you’ll remember as the mobile app Maduro promoted in the past two years to encourage chavistas to snitch on dissidents.

“I told you so…”

Until that day, Zapatero was able to sell to the Spanish people that he had been in Venezuela not just as a negotiator helping take people out of jail, but as a peacemaker trying to prevent the country from falling into a civil war. Apparently through his good heart and blue eyes.

Suddenly, Spain has discovered that a former president, adored among socialists for his term’s achievements like the disbandment of terrorist group ETA, who left Moncloa Palace with no scandals on his shoulders, and who kept enough prestige to back the rise of Sánchez, is an international operator that used his connections and knowledge to make at least 2.6 million euros in ways that spill way beyond the disputable boundaries of legal lobbying.

Once again, Venezuelans raised their eyes to the sky and whispered with resignation. That “yes, moron, we have known this for years” feeling we are so familiar with. 

This case should remind the EU that post-Maduro Venezuela still harbors kleptocratic networks embedded well within European jurisdictions.

For Venezuelan media, and we dare to say a great deal of the public, Zapatero has been known for years as a loyal operator of the chavista regime who works at the expense of the people to help Maduro, and now the Rodríguez siblings, to preserve power. In doing so, he has kept the boardgame tilted against the opposition. The statesmanship that many Spaniards attribute to Zapatero has served only to defend Maduro’s interests during several negotiation rounds with international presence, and to corner the opposition into disadvantageous arrangements by presenting himself as an arbiter when, in fact, he’s no more than an able messenger of Miraflores. Former political prisoners like Lorent Saleh have recalled how Zapatero pressured their families to keep quiet about torture and abuse endured in prison. All that work, of course, has been handsomely rewarded.

We saw his shadow in the humiliation of president-elect Edmundo González Urrutia, in the Spanish ambassador’s house in Caracas, during his last hours in Venezuela in August 2024. Edmundo was pressured by Delcy and Jorge Rodríguez to sign a self-incriminating letter as a condition for being allowed to leave for Spain. After that, the Rodríguez siblings and Zapatero have actively endorsed each other: one of the Spaniard’s last visits to Caracas saw him declaring next to Jorge and other National Assembly lawmakers as a key international sponsor of the 2026 amnesty law, which Delcy recently discontinued. One of those lawmakers, fake opposition politician Timoteo Zambrano, is another close friend and ally of Zapatero. The latter’s influence looks so significant that Delcy just appointed Zambrano as the Venezuelan ambassador in Madrid.

Bad for Delcy, good for María Corina

The investigation will likely reveal more details about the dealings between the chavista regime, Zapatero and other politicians and businesspeople close to the Sanchista government. It will all depend on what prosecutors can find and prove, but it’s fair to say that a wave of scandals and a thickening of corruption dossiers of this kind could make any democratic government in the world collapse (though with Sánchez, in the end, we’re talking about a man Spanish voters know for surviving all kinds of reputational crises). 

The Spanish government was among the first to recognize Delcy Rodríguez as head of state. As early as January, its top diplomat said he would request that the EU lifts sanctions on Delcy. Just a few weeks ago, the same official confirmed that Caracas would resume talks with the IMF. The Spanish Foreign Ministry used to be run by Josep Borrell, a socialist from the non-Zapaterista faction (the more moderate, Felipista wing) of the ruling PSOE, who has become a vocal critic of both the Maduro dictatorship and Zapatero. But Madrid’s latest efforts to normalize relations with Delcy haven’t gone unnoticed, perhaps encouraged by the Trump administration, and also by Maria Corina Machado’s close ties with the Spanish Right.

With such accusations against a key enabler of this bilateral relationship, the image of normalcy (and common sense) both Sánchez and Delcy are trying to project should take a hit. This case should remind the EU that post-Maduro Venezuela still harbors kleptocratic networks embedded well within European jurisdictions.

We should note this is not a problem where Delcy can turn to the Trump administration for help. Not only because Trump despises Sánchez, but because Homeland Security reportedly gave leads to Spain’s National Police in the Plus Ultra case, in cooperation through the American embassy in Madrid.

A big winner in this case is María Corina Machado, who recently held a massive rally in Madrid’s main square that few Spanish politicians could have matched. Machado was lambasted by Foreign Minister José Luis Albares for refusing to meet Sánchez or other leftwing leaders during her Madrid visit. Throughout her trip, when asked by journalists about this decision, Machado did not name Sánchez but thanked the Spanish government for receiving Venezuelan migrants over the years, while also stressing her utmost respect for Spanish institutions. It is false that Machado only met with the right-wing opposition: she appeared publicly with former PM Felipe González, a historic figure of Spanish social democracy and a key leader of the country’s famous Transition.

Machado may now be feeling some relief about how the whole Spanish saga is unfolding (both Zapatero and Machado have acknowledged they have never spoken to each other).

In another era, she might have summed it up with one of her classic phrases: se los dije.

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