finance

MOGADISHU, Somalia: Somalia’s business community is seeking alternative shipping routes due to disruptions and security concerns around the Bab Al-Mandab Strait and the Strait of Hormuz after Iran-backed Houthis captured a key port city and an island, sending thousands of Yemenis fleeing to neighboring Djibouti.

Companies have traditionally imported goods from Asia through Gulf countries, such as the United Arab Emirates, Oman, and Saudi Arabia. Now, some are trying a more direct approach.

“The latest tensions in the Bab Al-Mandab Strait, as well as those in the Strait of Hormuz, have negatively impacted us,” said Mohamed Ali Nur, director of Mogadishu Seaport. “But we have also taken measures to avoid that disruption.”

Nur said his port has worked with exporters to find alternative routes.

“For the first time, we brought a ship carrying sugar directly from Sri Lanka,” Nur said. “This could be a strategy we developed because of these tensions.”

Yemen’s internationally recognized government and Saudi Arabia have been battling the Houthis for 12 years.

The recent escalation has ended a ceasefire that had largely stopped civil war across Yemen since 2022.

Now the number of people from Yemen fleeing the fighting is soaring.

On Sunday, the International Organization for Migration said over 85,000 people have been displaced since the beginning of the month. More than 2,000 people have reached Djibouti, which neighbors Somalia, the agency said.

At Mogadishu’s busy seaport, cargo ships continue to unload food and other commodities. Somalia is particularly dependent on maritime trade for many of the goods its people use every day.

For ordinary Somali consumers, changes in shipping routes can eventually be felt in the markets, where imported food and other goods are sold. Longer or more complicated journeys can mean higher transportation costs and delays in getting products onto store shelves.

Capt Ali Jemdi, who is originally from Syria and ships cargoes of sugar, said uncertainty in the region is already creating concerns for ships operating along the routes.

“There is some trouble over there because of the war,” he told The Associated Press, referring to the Arabian Gulf and surrounding waters. “The Bab al-Mandab may also have some issues for the vessel.”

He said the instability could make maritime transportation and trade more difficult.

NEW YORK: Alexander Zverev won his second major championship and kept American men without a Grand Slam title since 2003, beating Ben Shelton 6-3, 7-6 (2), 5-7, 6-2 on Sunday in the US Open final.

Zverev finally broke through in the majors by winning this year’s French Open and followed up by finally adding the title in New York that he so painfully let slip away in 2020.

The No. 1 seed in a Grand Slam for the first time, he capitalized on Shelton’s shaky start in his first major final, played a nearly flawless tiebreaker on serve and then turned back Shelton’s comeback attempt in front of a crowd that desperately cheered him on.

Shelton was trying to win the first title by an American man since Andy Roddick won in Flushing Meadows in 2003, as well as the first by a Black man since Arthur Ashe in 1968.

But Zverev was too good in majors this year and apparently didn’t even know how good he was. He finished the match on his serve but didn’t seem to realize it, dropping back behind the baseline as if set to return. Only a few moments later did he figure out he had won, raising his arms in celebration.

MADRID: The Spanish government on Sunday said more than 5,300 of the migrants who remained in Ceuta after July’s influx had returned to Morocco in a month, as it faces pressure to restore normality to the increasingly tense city.

The new figures come as criticism over the speed at which the migrants are being returned from the Spanish north African territory damages Socialist Prime Minister Pedro Sanchez before next year’s election.

More than 70,000 migrants entered Ceuta on July 30 and 31 in an unprecedented and deadly rush, with most returning to Morocco in the following hours.

The government has had to identify the thousands of migrants who have remained for weeks to check if they are entitled to asylum, while unaccompanied children cannot be summarily deported.

Angel Victor Torres, the minister tasked with leading the government’s response, said in a video posted to social media that 5,321 people had “voluntarily returned” to Morocco since August 10.

Ninety people had “given up” their request for international protection and “almost 1,000 people are being registered with the aim of being able to complete their return proceedings,” Torres added.

The minister did not say how many migrants remained in Ceuta after those returns, a figure that has consistently sparked controversy between the leftist government and the conservative-run city.

On Friday, Ceuta’s leader Juan Jesus Vivas, of the main opposition right-wing Popular Party, put their number at 13,000, but the government’s estimations have been significantly lower.

Locals have protested regularly as the migrants continue to camp on beaches and sleep in the streets, accusing the government of abandoning the overwhelmed city amid a humanitarian crisis.

The migration ministry announced on Sunday the creation of another 864 places in temporary migrant shelters, taking the total to around 4,300 and with a view to reaching 6,000 “in the near future.”

Doubts about what the government knew beforehand and the possible role of Morocco, with which Madrid has spent years trying to improve relations, have also increased the political fallout for Sanchez.

KYIV: Poland and Ukraine on Sunday denounced Russian strikes close to the Polish border, including on a Warsaw-bound train and near a frontier checkpoint — as an “escalation” in the war.

Ukraine’s rail operator said former British prime minister Boris Johnson and ex-US CIA director David Petraeus were at a border train station nearby around the time the train was hit.

But the strikes came as US President Donald Trump called on Ukraine’s President Volodymyr Zelensky to halt attacks on Russian refineries, saying it was causing a shortage of diesel fuel and “there are plenty of other targets”.

Ukraine has increasingly targeted Russian oil refineries in a bid to hurt Russia’s war effort.

Russia attacked western Ukraine with drones Sunday, just days after US envoys visited Kyiv and Moscow in a bid to revive talks to end Europe’s worst conflict since World War II. European nations are meanwhile worried by what they say is increased Russian-orchestrated sabotage acts on their soil.

Poland and Ukraine said a Kyiv-Warsaw passenger train was struck just two kilometers (1.2 miles) from the Polish border, but reported no casualties.

“Shortly before the locomotive was hit at the Ukrainian-Polish border, a diplomatic train was at Yagodyn station. There were, among others, security advisers from several EU member states and former European leaders on board, including former UK Prime Minister Boris Johnson,” said the Ukrzaliznytsia rail operator.

“In another train that was at Yagodyn station at the very moment of the attack was former CIA Director David Petraeus,” it added. The operator did not say how far the officials were from the train attacked.

Zelensky said Moscow had “deliberately” struck the locomotive.

“It is precisely to prevent these strikes from spreading further into Europe that Ukrainian men and women fight every day, give their lives, and do not allow the aggression to expand,” Zelensky said.

– Poland warns of possible more attacks –

Poland has been one of Ukraine’s main allies and, with Ukrainian airspace closed, trains to Poland have been one of the main routes out of the war-torn country, used by refugees.

Poland’s Prime Minister Donald Tusk chaired an emergency meeting in Warsaw following the strikes, warning he expected Russia to escalate the war “in the coming weeks”. He added: “We cannot exclude that the escalation will also affect our territory… I hope not.”

Russia said it had hit “railway infrastructure used to transport military cargo” from European countries.

– Russia ‘knocking at Europe’s door’ –

Speaking in Kyiv, Poland’s foreign minister Radoslaw Sikorski said the “escalation” should lead to allies to “double” their support for Ukraine.

“This was just a few hundred meters from the Polish border; this affects the safety of my countrymen,” Sikorski said.

“I understand that nobody died this morning in that particular attack, but it could easily have happened.”

Ukraine’s Foreign Minister Andriy Sybiga said President Vladimir Putin considered Russia was “de facto” at war with Europe.

“Europe may consider, or reassure itself, that it is not at war with Russia, but Russia does not see it that way. De facto, it is already at war with the Euro-Atlantic space, carrying out various hostile actions,” Sybiga said.

“Putin’s terror is literally knocking at the door of the European Union and NATO.”

Russian attacks killed at least two people on Sunday in the frontline city of Kramatorsk.

Twenty people, including two children, were also wounded in a second day of attacks on the southern port city of Odesa, Ukrainian officials said.

– Three-way talks –

The Kremlin, meanwhile, said negotiations with Ukraine and the United States on the war could take place in October.

“We do not rule out such a possibility; we are talking about the foreseeable future,” Kremlin spokesman Dmitry Peskov told journalists, cited by Russia’s Ria and Tass news agencies.

Several rounds of negotiations have failed, while US-led efforts stalled during the Middle East war.

In an interview released on Saturday, Zelensky said he would be willing to meet Putin at the G20 summit in Miami in December.

But Peskov said that was “impossible”, speaking to AFP in New Delhi on Saturday, repeating Moscow’s demand that a meeting could only take place in the Russian capital.

AL-MUKALLA: Yemen’s government forces are better prepared, more experienced and better armed to defend the central city of Marib against any renewed Houthi offensive, a senior military official said, amid reports that the Iran-backed group is massing forces around the province.

Brig. Yahya Al-Hatemi, director of the Yemeni army’s military media, told Arab News that government forces had gained significant battlefield experience during more than a decade of fighting and were ready to repel any attempt by the Houthis to advance on Marib.

“The armed forces have generally become more organized, powerful and effective,” Al-Hatemi said.

“Over the past decade, they have gained combat experience that enabled them to overcome adversity, master military tactics and identify the enemy’s strengths and weaknesses.”

Marib has become one of the most strategically important government-held areas in Yemen since the war escalated in 2015.

It is home to more than 2 million displaced people, major army bases, oil and gas fields and a key power station. The Houthis have repeatedly attempted to seize the city, but previous offensives have failed.

Over the weekend, Yemeni media reported that the Houthis had sent large numbers of fighters and military equipment to areas of Marib province under their control, raising fears of preparations for another offensive.

The reported buildup followed major Houthi gains along Yemen’s western coast, including the seizure of the Red Sea port city of Mokha and advances toward the Bab Al-Mandab area.

Al-Hatemi said the army was aware that Marib could become the Houthis’ next major target.

“We know that the new pressure will be directed at Marib,” he said.

“However, Marib has significant military strength and divine protection. Moreover, the Houthis lack a popular support base there. Quite the opposite: The local environment is hostile to them.”

The Houthis launched a major offensive to capture Marib in early 2021, with fighting continuing into early 2022 and leaving hundreds of civilians and combatants dead or wounded.

The campaign largely subsided following the UN-brokered truce in April 2022, although the Houthis continued launching missile and drone attacks and mobilizing forces around government-held parts of the province.

Military commanders say the situation is different today.

Government forces are operating under a more unified command and have accumulated years of experience fighting the Houthis across multiple fronts.

For the first time in more than a decade, Yemen’s military has also reactivated its air force, which has recently carried out strikes against Houthi positions.

“The armed forces were supplied with military equipment they had previously lacked, while the army and navy were restructured,” Al-Hatemi said.

“In addition, the air force, which had been absent for 11 years, was reactivated.”

Presidential Leadership Council member and Marib Gov. Sultan Al-Aradah expressed similar confidence, saying government forces were capable not only of defending the province but eventually of taking the initiative and launching a broader campaign against Houthi-held territory.

“There is no doubt that Marib is part of the broader battlefields across the country,” Al-Aradah told Saba TV.

“From the beginning, the Marib front has focused solely on victory, supporting the people and supporting all fronts across Yemen. The objective of the forces in Marib and elsewhere is to restore the capital, Sanaa.”

Al-Aradah urged families in Houthi-controlled areas not to send their children to fight alongside the group.

“I hope they do not send their misled children into death traps … horrific slaughterhouses that make one shudder with shame,” he said.

“It is deeply regrettable to witness, right before our eyes, these scenes where hundreds, even thousands, of misled individuals are sent off — unaware of where they are going or whom they are fighting.”

Al-Aradah accused the Houthis of reigniting the war through their latest military escalation and blamed Iran for encouraging the group to reject peace efforts.

He also praised Saudi Arabia for its support for Yemen’s internationally recognized government.

“Our Arab brothers, foremost among them Saudi Arabia, provide great support to the Yemeni people in all fields,” he said.

“They stand by Yemen’s constitutional legitimacy and support the Yemeni people in addressing their economic and humanitarian hardships. They also stand by us in our efforts to achieve stability and prosperity under a legitimate state.”

The renewed attention on Marib comes as the battlefield has widened following Houthi advances in western Yemen.

The militia’s gains around Mokha and Bab Al-Mandab have increased pressure on government forces and raised questions over where the Houthis will seek to concentrate their next major offensive.

For government commanders, however, the stated objective now extends beyond simply defending Marib.

“The priority now is to restore the Yemeni state and rid Yemen of terrorist organizations, foremost among them the Houthis, regardless of their form or nature,” Al-Aradah said.

“This is an irreversible commitment tied to the will of the people. There will be no turning back until the state is restored, whatever it takes.”

RIYADH: A total of 114 racing camels worth an estimated SR270 million to SR492 million ($72 million to $131 million) entered to compete in the four final rounds of the Crown Prince Camel Festival in Taif, the Saudi Press Agency reported.

The festival’s closing program featured four championship races, with 35 camels entered in the first round, 13 in the second, 46 in the third, and 20 in the fourth.

The event, organized by the Saudi Camel Federation under the patronage of Crown Prince Mohammed bin Salman, offered SR50 million in prize money and attracted leading owners and competitors from across Saudi Arabia and the Gulf.

The festival’s most prestigious trophies, Al-Saif (Sword) and Al-Bunduq (Rifle), are awarded in the elite Hiyl (female camel) and Zumoul (male camel) championship races. Winning either title significantly enhances a camel’s prestige, breeding value, and market price.

Camel owner and racing specialist Abdullah Al-Sharif said the market value of a single camel competing in the Hiyl category typically ranges from SR3 million to SR6 million.

In the Zumoul category, camels are valued at between SR1.5 million and SR2 million.

Some elite camels command prices ranging from SR7 million to SR8 million, depending on their racing record, results, and bloodlines.

Qualifying for the closing championship trophy rounds can significantly increase a camel’s value, with previous achievements, breeding potential, lineage, prize money, and the level of competition all influencing market prices, Al-Sharif added.

Saudi Camel Sports spokesperson Murdhi Al-Khamaali said the festival has helped promote authentic Arab culture globally by bringing together traditions from Saudi Arabia, the Gulf, and the wider Arab world.

He said the event has grown beyond a sporting competition to become an economic, social, and cultural movement, while also helping revive Taif’s historical and cultural heritage.

Al-Khamaali added that bearing the name of the crown prince has transformed the festival into a cultural and economic destination for camel owners from across the Kingdom and the Gulf.

He said the festival’s rapid growth reflects its expanding importance as a platform for preserving heritage and supporting economic activity. Since its launch in 2018, the event has attracted more than 100,000 camels and earned multiple Guinness World Records titles.

The seventh edition in 2025 marked a major milestone, with participation surpassing 100,000 camels, building on the nearly 99,000 camels recorded across earlier editions.

The festival was recognized by Guinness World Records in 2024 for hosting the world’s largest camel race, with 21,637 camels participating. Held during the Kingdom’s “Year of the Camel,” the event highlighted the animal’s enduring cultural significance across the Arabian Peninsula.

The festival has also received several major accolades, including four Guinness World Records titles and the Makkah Economic Excellence Award in 2023, recognizing its contribution to cultural preservation, economic development, and the promotion of Saudi heritage.

In a separate update issued ahead of the finale, festival results showed Saudi-owned camels leading the standings with victories in 131 heats during the eighth edition.

Saudi-owned camels recorded 47 wins in the Al-Haqayiq category, 21 in Al-Laqaya, 15 in Al-Jadha’a, and nine in Al-Thnaya, for a combined total of 92 victories. They also secured 35 wins in the Intaj Al-Saudiyya races and four in the Sibaq Al-Hajjanah category, bringing their overall tally to 131 wins.

Emirati-owned camels ranked second with 35 victories, followed by Qatar with 27. Kuwaiti and Omani owners recorded three wins each, while Bahrain registered one victory.

DUBAI: French actress Melanie Laurent made a dramatic red-carpet statement in an Elie Saab Haute Couture Fall/Winter 2025–26 gown at the Venice Film Festival.

The sculptural black creation from the Lebanese couturier hugged her silhouette before cascading into a floor-skimming skirt, while intricate silver embellishments illuminated the bodice and skirt with a liquid-metal effect.

Meanwhile, the Venice Film Festival awarded its top prize on Saturday to a drama directed by Danish-Egyptian filmmaker May El-Toukhy about a woman trying to hide a wartime relationship with a Nazi — the only feature film with a female director in the competition.

“Woman Unknown” was a major talking point at the festival because of its subject matter, which has rarely been explored in film, and because El-Toukhy was one of only two female directors in the event.

Only one other woman — Israel’s Rachel Szor, co-director of the chilling documentary “NAZA” about Israel’s war on Gaza — was behind the 21 films vying for prizes at the star-studded closing ceremony in Venice.

“‘Woman Unknown’ is about the female body as a battleground and a public matter. And at the same time, the film tells the tale of women who are invisible, unseen and voiceless,” El-Toukhy, who grew up in Denmark with a Danish mother and Egyptian father, told the ceremony.

The head of this year’s jury, American actor-director Maggie Gyllenhaal, had questioned the dearth of women-directed films on the opening day, but she declined to discuss the issue further at a final press conference.

“I think I’m tired of talking about this same subject over and over,” she said. “I just want to celebrate a brilliantly made movie that I felt was like a laser beam.”

The second-place Silver Lion went to “Possible Love,” a poignant relationship study by South Korean auteur Lee Chang-dong that was one of the most highly praised movies of the festival.

The best director prize went to Russian-born Ilya Khrzhanovsky for his vast, riotous and experimental cinema project “DAU,” which chronicles the life of the troubled father of the Soviet nuclear program, Lev Landau.

JEDDAH: Oman’s refinery output fell 3.7 percent year on year to about 129.1 million barrels through July, with diesel production declining 6.8 percent, according to preliminary data from the National Centre for Statistics and Information. 

The latest figures showed that total motor-fuel production declined 1.4 percent through July, Oman News Agency reported, citing NCSI data. 

Diesel production fell to 43.31 million barrels from 46.48 million barrels a year earlier. Domestic sales declined 8.3 percent to 11.11 million barrels, while exports fell 11.8 percent to 33.33 million barrels. 

The decline in refinery output comes as Oman continues to develop its downstream energy and petrochemical industries as part of its economic diversification strategy. Invest Oman describes the petrochemical sector as a key pillar of Oman Vision 2040, with major projects including the Duqm Refinery and Liwa Plastics supporting the production of higher-value products from the country’s hydrocarbon resources. 

Production of regular gasoline, or 91-octane petrol, fell 4.5 percent to 9.63 million barrels through July, compared with 10.09 million barrels during the same period in 2025. Sales declined 4.6 percent to 10.04 million barrels, while exports rose 9.8 percent to 1.98 million barrels. 

“By contrast, production of premium gasoline, or 95, rose 2.6 percent through the end of July 2026 to 8.32 million barrels, compared with 8.11 million barrels during the same period in 2025,” ONA reported. 

It added that M95 sales, however, fell 10.6 percent to 8.86 million barrels, from 9.90 million barrels, while exports dropped 33.9 percent to 362,900 barrels, compared with 549,100 barrels a year earlier. 

The figures extend a trend seen earlier in the year. Through June, Oman’s total refinery output had fallen 5.1 percent to 108.85 million barrels, with diesel and regular petrol production declining while jet fuel and naphtha output increased. 

Jet fuel, naphtha rise 

Jet fuel production increased 12 percent to 16.79 million barrels through July, from 14.99 million barrels a year earlier. Sales fell 9.2 percent to 2.57 million barrels, while exports rose 27.4 percent to 14.52 million barrels. 

Naphtha production increased 4.5 percent to 22.61 million barrels, while sales rose 3.2 percent to 8.33 million barrels and exports increased 2.6 percent to 14.66 million barrels. 

LPG and other refinery products 

Liquefied petroleum gas production declined 3.3 percent through the end of July to 6.46 million barrels, compared with 6.68 million barrels during the same period in 2025. 

“Its sales also fell 22 percent to 1.76 million barrels, compared with 2.26 million barrels. By contrast, its exports increased 3.9 percent to 2.06 million barrels, compared with 1.98 million barrels,” ONA stated. 

Production of other refinery products fell 15.9 percent to 21.97 million barrels, compared with 26.12 million barrels a year earlier, with sales of those products declining 21.7 percent to 18.32 million barrels and exports falling 3.1 percent to 5.62 million barrels. 

Petrochemical production 

In the petrochemical sector, benzene production increased 7.3 percent to 109,900 tonnes through July, compared with 102,400 tonnes during the same period of 2025, while exports of the aromatic chemical rose 11.3 percent to 108,000 tonnes, according to the statistics. 

Paraxylene production increased 9.6 percent to 370,500 tonnes, compared with 338,000 tonnes a year earlier, with exports rising 1.7 percent to 372,400 tonnes. 

Polypropylene production, meanwhile, fell 25.4 percent to 149,900 tonnes from 200,800 tonnes during the same period last year. 

Despite the decline in output, sales of the key plastic material rose 32.1 percent to 23,500 tonnes, while exports fell 17.9 percent to 122,300 tonnes, compared with 148,900 tonnes. 

RIYADH: Saudi Arabia’s first automotive company and original equipment manufacturer, Ceer, will unveil its first flagship electric vehicles, a sedan and an SUV, on Sept. 21, marking a major milestone in the Kingdom’s efforts to establish a domestic automotive industry.

The reveal comes as Saudi Arabia accelerates its push to develop advanced manufacturing capabilities and build an electric-vehicle ecosystem under Vision 2030, supporting economic diversification and strengthening the Kingdom’s position in the global automotive industry.

Established in 2022, Ceer is moving from vehicle development to the unveiling of its first models as Saudi Arabia seeks to establish itself as a regional hub for electric-vehicle manufacturing.

James DeLuca, CEO of Ceer, said: “At the beginning of this year, we said that 2026 is the year of Ceer. I am happy to announce that we’ve set the date for the reveal of our first flagship vehicles.”

He added: “The world is about to witness a historic moment, the result of an incredible journey from initial design and intensive engineering to the buildup of one of the most advanced manufacturing facilities in the world, in record time.”

Saudi Arabia’s EV push

The Public Investment Fund is driving the Kingdom’s electric vehicle ambitions through investments in companies including Ceer and Lucid, while supporting a broader ecosystem covering manufacturing, infrastructure, technology and supply chains.

Ceer was established as a joint venture between PIF and Foxconn to develop Saudi Arabia’s automotive industry. The company designs, engineers, sources, validates and manufactures vehicles, with plans to sell and service them in the near future.

Workforce and local impact

Since its establishment, Ceer has expanded its workforce from 20 to 2,300 employees, bringing together Saudi talent and global automotive experts.

The company has secured partnerships with international companies including BMW, Hyundai Transys and Rimac, as well as Siemens, Sabelt, Isoclima, ANDRITZ Schuler, Durr and XYG.

These partnerships support Ceer’s target of achieving 45 percent local content by 2034. The company is also developing an advanced manufacturing complex and vehicles tailored to the needs of Saudi Arabia and the wider region.

Ceer is expected to contribute around SR30 billion ($8 billion) to Saudi Arabia’s gross domestic product, improve the trade balance by SR80 billion and create about 30,000 jobs, with Saudis accounting for 80 percent of direct employment.

The company also supports the Saudi Green Initiative’s target of achieving net-zero emissions in the Kingdom by 2060.

RIYADH: S&P Global Ratings affirmed Saudi Arabia’s long- and short-term sovereign credit ratings at A+/A-1, with a stable outlook, saying the Kingdom’s diversified energy infrastructure and fiscal buffers will help it withstand pressures from the ongoing Middle East conflict.

The stable outlook reflects S&P’s assessment that Saudi Arabia can absorb the impact of regional disruptions while maintaining non-oil growth and fiscal flexibility. The agency highlighted the Kingdom’s ability to redirect crude exports to the Red Sea through the East-West oil pipeline, as well as its substantial oil storage and refining capacity at home and abroad.

S&P expects real gross domestic product to contract 0.9 percent in 2026, before rebounding 8.2 percent in 2027 on higher oil production. Growth is then forecast to average 3.3 percent in 2028 and 2029. The sharp swing reflects the impact of the current disruption on oil activity and the expected increase in production next year.

“The authorities and the country’s sovereign wealth fund are recalibrating the pace of project implementation under Vision 2030, which should help contain fiscal deficits and the pace of general government debt accumulation,” S&P said.

The agency noted that non-oil activities have remained resilient despite regional tensions, supported by continued consumer spending, with the non-oil sector, including government activities, now accounting for around 70 percent of GDP, up from 65 percent in 2018.

The affirmation follows Fitch Ratings’ July decision to maintain Saudi Arabia’s “A+” rating with a stable outlook, citing strong fiscal buffers. The International Monetary Fund also upgraded its 2027 growth forecast for the Kingdom to 5.5 percent from 4.5 percent in April, citing its diversified export infrastructure.

Fiscal picture

S&P forecasts a fiscal deficit of 5.8 percent of GDP in 2026, narrowing to an average of 3.4 percent of GDP in 2027-29. The agency also identified Saudi Arabia’s substantial net general government asset position as a key credit strength and said foreign-exchange reserves had reached their highest level since early 2020.

Daniel Al Banna, financial market analyst and wealth management specialist at Hewar Group, told Arab News the affirmation is a strong recognition of the Kingdom’s economic resilience and strategic strength.

He noted that Saudi Arabia had demonstrated strong strategic thinking, flexibility and the ability to protect the continuity of its economic activity without becoming directly involved in the conflict.

Al Banna said: “The rating reinforces Saudi Arabia’s position as one of the strongest sovereign credit stories in the region,” describing current geopolitical pressures as “primarily short-term factors” that have not altered the Kingdom’s broader economic trajectory.

CAIRO: An ‌Israeli airstrike on Sunday killed at least two Palestinians in a vehicle and wounded 13 others in the Gaza Strip, medical staff said.

The strike in the Tel Al-Hawa neighbourhood in western Gaza City, left the vehicle mangled, according to footage circulated on social media. Local medical staff told ‌Reuters that ‌they urged people to provide ‌information that could help identify the two people who were killed and whose bodies were dismembered by the explosion.

The Israeli military said the strike targeted two Hamas militants, without giving further information.

An October 2025, U.S.-backed, ceasefire halted large-scale fighting in ‌Gaza, but ‌it has not ended Israeli strikes and ‌there has been little progress on ‌steps towards permanent peace. Hamas accuses Israel of violating the ceasefire and undermining efforts to implement U.S. President Donald Trump’s broader plan ‌to end the Gaza conflict, which includes the Israeli withdrawal from the strip and the disarmament of Hamas. Israel says Hamas has been violating the deal.

More than 1,300 Palestinians, mostly civilians, have been killed in Gaza since the ceasefire took effect, according to the territory’s health officials, while the Israeli military says four Israeli soldiers have been killed.

Hamas does not usually disclose information about fatalities among its fighters.

STOCKHOLM: Sweden began voting Sunday in a general election after a tight race that will see either the far-right enter government for the first time or the left-wing opposition reclaim power.

Opposition leader Magdalena Andersson of the Social Democrats was among the first to cast her ballot after polling stations opened at 8:00 am (0600 GMT).

Clad in a pale blue suit, the 59-year-old who in 2021-2022 became the first woman to serve as Sweden’s prime minister voted with her husband at a school in her home municipality of Nacka, south of Stockholm.

Opinion polls have long credited the four parties in her left-wing bloc with a comfortable lead over conservative Prime Minister Ulf Kristersson’s four-party alliance, which includes the far-right Sweden Democrats.

But the gap narrowed to a dead heat in the final days of the campaign.

“It is now up to the Swedish people to decide which direction our country should take. Should we have a government entirely dominated by the Sweden Democrats? Something that has never happened in Sweden before? Or should we have a government led by me, which will steer Sweden in a new spirit of cooperation?” Andersson told reporters after voting.

Her party, which governed the Scandinavian country for the better part of the 20th century and remains Sweden’s largest, has pledged to bolster the welfare state and help struggling households cope with rising costs.

‘Make Sweden great again’

Outgoing Prime Minister Kristersson has meanwhile vowed to focus on improving Swedes’ everyday lives now that his government’s clampdown on organised crime and immigration has begun to show results.

Deadly shootings and bombings by organised crime networks have decreased significantly in recent years, and asylum applications are at a record low.

“We want to use our new and far better preconditions to improve the lives of ordinary people… to make Sweden great again,” Kristersson told AFP before the vote, borrowing Donald Trump’s famous catchphrase.

His three-party minority coalition cut a deal in 2022 with the Sweden Democrats giving them influence over government policy, in particular on immigration and crime, in exchange for their support in parliament.

Over the past two decades, far-right leader Jimmie Akesson has steered the party with neo-Nazi roots into the mainstream.

It is now hoping to enter government. Kristersson has promised the far right key cabinet posts if the right-wing wins the election.

“I think it’s a very important election this year, and hopefully a lot of people will realise that we have to change course… so that everyone will feel included in society,” store manager Linda Eriksson, 48, told AFP as she voted at a polling station.

Ingrid Rudien, a 64-year-old assistant secretary, said she hoped the country “can unite together as a nation even though we may have a close result”.

‘We’ve already won!’

Akesson was confident of victory at a final election rally on Saturday in the Swedish capital.

“We’ve already won!” the 47-year-old said to thunderous applause in Stockholm’s Kungstradgarden Park.

“Sweden is becoming safer, better, and more Swedish,” he said, surrounded by blue and yellow campaign posters blaring “Make Sweden Sweden Again”.

Agneta Andersson, a 78-year-old pensioner attending the rally, told AFP she was voting for the far right.

“Like Jimmie, I want it to be like it was when I was young, in the old Sweden. I can’t cope with all this violence in society.”

Voting stations close at 8:00 pm (1800 GMT) when exit polls were to be published, with the first reliable results expected several hours later.

Some eight million people are eligible to vote in the election, in a country of 10.6 million where voter turnout regularly tops 80 percent.

Around half of voters have cast their ballots in advance.

If the right wing were to win the election, the formation of a new government would be fairly straightforward.

But as the four left-wing parties are splintered ideologically, tough negotiations would be needed to form a government even if they hold a majority.

DUBLIN: Thousands of demonstrators marched through Dublin on Saturday to protest against US President Donald Trump’s visit to Ireland, with campaigners condemning his policies on foreign affairs, climate, immigration and social issues, according to The Irish Times.

The Dublin protest drew a broad mix of political parties, campaign groups, trade unions and unaffiliated demonstrators, The Irish Times reported. Organizers said about 25,000 people attended, although the newspaper said the actual number was likely lower.

Marchers walked from the Garden of Remembrance to the Dáil, carrying Palestinian flags and placards criticizing Trump over issues including Gaza, racism, misogyny, climate policy and US military activity.

One protester quoted by The Irish Times said the crowd was intended to send a message of opposition, adding: “With Trump, the only people on the streets are here to oppose him.”

Another protester, Holly Eustance, told the newspaper that Trump’s policies threatened vulnerable species and the planet, saying war and climate change caused widespread destruction while political and economic systems favored billionaires over people.

The march was largely peaceful, though The Irish Times reported that a masked breakaway group, Anti-Imperialist Action, burned a US flag near Molesworth Street, set off firecrackers and chanted against the presence of US troops at Shannon Airport.

Speakers outside the Dáil criticized the Irish government’s handling of Trump’s visit. Labour TD Ciarán Ahern accused officials of “sycophancy,” while Senator Alice Mary Higgins described the trip as a “grotesque pantomime,” according to The Irish Times.

Trump earlier appeared to dismiss questions about the protests, suggesting they were probably “friendly,” but demonstrators quoted in the Irish newspaper said their message was that he was not welcome in Ireland.

MAKKAH: More than 60 early Islamic inscriptions and two historic wells in Wadi Al-Usaylah, northeast of Makkah, are providing archaeologists with a record of early Arabic writing and the pilgrimage routes used by caravans traveling to the holy city.

The six-kilometer-long, two-kilometer-wide valley was historically an important passage for travelers and pilgrim caravans arriving from Iraq and surrounding regions, according to a report by the Saudi Press Agency, or SPA.

The inscriptions, carved into mountain rock faces, date to the seventh and eighth centuries — corresponding to the first and second centuries of the Islamic calendar. They include references to figures from the early Islamic period and offer scholars tangible evidence of changes in the form, structure and aesthetic development of early Arabic script.

Water was also essential to sustaining travelers crossing the arid landscape. Successive Islamic rulers established water infrastructure along the route, with two of the valley’s four original historic wells still surviving near the inscribed rock faces. Some of the wells are believed to date to the Abbasid Caliphate.

The Royal Commission for Makkah City and Holy Sites is carrying out a comprehensive preservation program along the corridor to protect the inscriptions and wells from erosion. The effort forms part of wider initiatives under Saudi Vision 2030 to preserve the Kingdom’s archaeological heritage while developing sustainable cultural destinations, SPA reported.

The Wadi Al-Usaylah findings add to a growing body of archaeological evidence documenting the development of writing and human settlement across Saudi Arabia.

In a July 2026 report, SPA said the King Salman bin Abdulaziz Royal Reserve contains thousands of archaeological inscriptions and rock carvings, including Thamudic and Nabataean writings as well as depictions of animals, hunting scenes and aspects of daily life. More than 400 archaeological and historical sites have been documented across the reserve, with some remains dating as far back as 8,000 BC.

Najran provides another extensive record of the evolution of writing in the Arabian Peninsula. In a September 2024 report, SPA described the UNESCO-listed Hima Cultural Area as a vast outdoor museum containing rock carvings and inscriptions in Ancient South Arabian, Thamudic and Islamic scripts.

Archaeological surveys in Najran have documented inscriptions from different periods, including tribal markings and writings in Thamudic, Sabaean, Himyarite and early Islamic scripts. The accompanying rock art depicts people, camels, horses, ibexes, hunting scenes and battles, offering clues to ancient communities and their material culture, SPA reported.

The continuity and development of Arabic writing are also illustrated by a bilingual inscription discovered and documented in 2024 in Alqan village in the Tabuk Region. According to an SPA report, the inscription dates to the fifth century AD and contains two lines in Thamudic script and one in early Arabic.

The Heritage Commission said the Tabuk discovery provided evidence that Thamudic writing continued to be used alongside early Arabic during the fifth century. It also offered new insights into the coexistence of the two writing traditions and the development of Arabic letter forms.

Together, such discoveries underscore the archaeological value of Saudi Arabia’s mountains, valleys and desert landscapes as repositories of written history. They also highlight the importance of systematic documentation and preservation to protect inscriptions and other remains from erosion and other threats while making them accessible for scientific research and cultural tourism.

For Wadi Al-Usaylah, the combination of early Islamic inscriptions and surviving water infrastructure provides a particularly important glimpse into the networks that connected travelers and pilgrims with Makkah during the formative centuries of Islam.

WASHINGTON: A federal judge has ruled that a plan by the Trump administration to slash staffing at the federal agency tasked with responding to disasters by 50% was unlawful.

The opinion issued late Friday marked a victory for labor groups who had sued the agency. The labor organization had argued that plans by the Department of Homeland Security violated congressional protections that were designed to safeguard the independence of the Federal Emergency Management Agency.

The issue of the FEMA staffing was part of a much larger lawsuit filed by the American Federation of Government Employees and other labor groups, pushing back on efforts by the Trump administration to slash the federal workforce.

U.S. District Judge Susan Illston wrote in her opinion that top Homeland Security officials late last year directed FEMA’s leadership to submit a staffing plan that included a 50% staffing cut even though the agency’s own supervisors objected.

“Frankly, the FEMA staffing plan number appears as if pulled from thin air,” wrote Illston.

The Department of Homeland Security and FEMA did not immediately respond to requests for comment.

Illston wrote that it was clear that the government violated rules established after 2005’s Hurricane Katrina that put decisions on staffing levels squarely in the hands of FEMA, not the Department of Homeland Security and that prevented DHS from “substantially” reducing the “functions” of FEMA.

Illston didn’t order a specific remedy to carry out her opinion but directed the two sides to meet and decide on a course of relief.

Although FEMA has experienced terminations, the 50% staffing cuts ultimately were not carried out. In recent months, after top leadership changes at FEMA and the Department of Homeland Security, the agency has rehired some staffers who were let go.

FEMA was one of the agencies targeted in the federal government for staff reductions as part of a broad Trump administration plan to reduce the size of government. The embattled agency has been buffeted by mass staff departures, disruptions of grant programs, and delays of disaster aid.

In May, a Trump-appointed FEMA Review Council submitted a final report recommending sweeping changes to how the agency supports states, tribes and territories in disaster.

The final version backed away from the recommendation to cut the FEMA workforce by 50%, which was included in a December 2025 draft reviewed by The Associated Press.

The council instead recommended the agency conduct a “strategic review” to determine “appropriate staffing levels.”

In an August report, the Government Accountability Office said it found the departures of thousands of staff in 2025 resulted in a “loss of institutional knowledge and experienced personnel” and “exacerbated longstanding workforce challenges.”

More than 4,300 employees, or about 17% of FEMA’s workforce, separated from the agency in the 2025 budget year, with over 1,500 through voluntary reductions. The agency also made about 2,900 new hires.

The GAO recently recommended to Congress that it “consider requiring” FEMA to base “significant workforce decisions” on a more strategic planning process.

Without it, the GAO found, “FEMA cannot be assured that the agency is positioned to effectively meet its mission needs.”

VENICE, Italy: “Woman Unknown,” a drama about Denmark in the aftermath of the Nazi occupation directed by May el-Toukhy, won the prestigious Golden Lion at the 83rd Venice Film Festival on Saturday.

The Maggie Gyllenhaal -led jury announced the winners, which included a best actor prize for John Malkovich for his performance in the dark CIA comedy “Wild Horse Nine.”

Malkovich was not in attendance at the ceremony, but he sent a video message, explaining that he is shooting in Montreal.

“I am humbled to be chosen for this award which has been given to so many wonderful actors,” Malkovich said.

Only 8 women have won a Golden Lion

El-Toukhy, who was the only woman to have solely directed a film in the main competition this year, is the eighth woman to have won the festival’s top prize.

“To me personally, ‘Woman Unknown’ is about the female body as a battleground,” el-Toukhy said. “At the same time the film tells the tale of women who are unseen, invisible and voiceless.”

She thanked Gyllenhaal for using her voice to shine a light on unequal opportunities for women in moviemaking.

The film, which does not yet have distribution in North America, is centered on a young nanny and housemaid who is about to marry her wealthy employer in the immediate aftermath of the war. But she harbors a secret past intimate relationship with a German soldier that threatens to upend her reputation. The lead, Mathilde Arcel, won the festival’s best actress prize.

Arcel was visibly emotional as she accepted the award, which she placed on the floor as she spoke as she said it was very heavy.

“This is my first lead role in a movie and my first time at a film festival,” she said. “I’m extremely honored.”

South Korean auteur Lee Chang-dong’s poetic portrait of class and labor, “Possible Love,” won the Silver Lion grand jury prize. “Possible Love” is Lee’s first film in eight years, following his acclaimed “Burning.”

“We are living in an era where the meaning of labor is fading and human connections are increasingly becoming severed,” Lee said through a translator. “I made this film to ask what cinema can and should do in times like these. I take this award as a sign that you want me to keep asking these questions.”

Gaza documentary takes special jury prize

“NAZA,” a harrowing documentary about military strategies employed in the war in Gaza from Israeli filmmakers Yuval Abraham and Rachel Szor, was awarded a special jury prize.

“It’s honestly not very easy to stand here, thinking of all the people, the Israeli politicians, the journalists back home who are attacking this film, denying it without even seeing it,” Abraham said. “It is really, really especially important to us that Israelis watch this film.”

The was added to the main competition late — at the request of the filmmakers — and debuted late in the schedule as well, but its impact was felt as it received a record-breaking standing ovation, lasting some 25 minutes, after its premiere.

Shot on the rooftops of Tel Aviv at night in extreme secrecy over three years, “NAZA” features testimony from 24 Israeli military insiders including intelligence officers and soldiers give who insight into the war in Gaza and what they say is the systemic killing of Palestinian civilians.

The jury gave the Silver Lion for directing to Ilya Krzhanovsky for his film “Dau,” a project about the Soviet physicists who built the atomic bomb that has taken over 20 years to make. Krzhanovsky, who renounced his Russian citizenship in protest of the war in Ukraine, dedicated the prize to Ukrainians, including his mother who was born there.

French director Stéphane Brizé’s won the screenplay prize for his corporate drama “A Good Little Soldier.” Malou Khebizi was given the Marcello Mastroianni award for emerging actor for her role in Cédric Kahn’s “A Place to Heal,” which is set in an adolescent psychiatric ward in a public hospital.

The jury this year included “The Voice of Hind Rajab” director Kaouther Ben Hania, English composer Daniel Blumberg, French filmmaker Xavier Giannoli, Afghan filmmaker Shahrbanoo Sadat and Hong Kong filmmaker Johnnie To.

Malkovich’s Oscar chances just went up

Aside from Malkovich’s win, the starrier, Hollywood films playing in competition were shut out of the awards, including “Primetime,” “Bunker” and “Ink.”

Some look to the Venice Film Festival awards for early indications of who might be in with a shot at Oscar nominations and wins. In recent years, Venice has launched winning best actor campaigns for people like Brendan Fraser and Adrien Brody.

Malkovich has yet to win an Oscar.

VATICAN CITY: Pope Leo XIV has named Father Mario Leon Dorado as a successor-in-waiting to the current archbishop of Rabat, Cardinal Cristobal Lopez Romero, who is being investigated over accusations of sexual assault revealed by AFP.

A statement from the Vatican on Saturday said Dorado was made the Moroccan archdiocese’s “coadjutor archbishop,” a title for a church official appointed to assist a sitting archbishop which also confers automatic succession in the event the incumbent retires or dies.

Dorado, a 52-year-old Spanish priest and member of the Missionary Oblates of Mary Immaculate, had been serving in Western Sahara for nearly 25 years, ultimately becoming apostolic prefect there.

In August he was named Rabat’s apostolic administrator, an official tasked with provisionally governing a diocese whose sitting bishop is “impeded or suspended,” after the accusations against Romero came to light.

On July 8, AFP revealed that at least five women were accusing Romero — who was among the prominent cardinals considered in 2025 as potential successors to Pope Francis — of sexual violence and inappropriate behavior.

No complaint has yet been filed with the Moroccan judiciary, the prosecutor’s office and police told AFP recently.

In response to AFP inquiries, Romero has said he “committed neither assault nor violence nor sexual harassment,” while announcing that he was stepping aside pending a Vatican investigation.

Romero’s mandate as archbishop of Rabat is officially due to end in 2027.

After Dorado was named apostolic administrator, two Vatican investigators went to Rabat to speak to some of Romero’s alleged victims and members of the diocese.

DAMMAM: It was a day of contrasts for last season’s SPL champions and runners-up — Al-Nassr and Al-Hilal — on Matchday 7 of the 2026/27 Saudi Pro League. The title holders dropped two valuable points against a winless Al-Khaleej in their worst performance of the season, while Al-Hilal produced their best yet, hitting Al-Taawoun for six in Qassim.

Al-Nassr could not have asked for a worse start against Al-Khaleej. The stifling Dammam heat — reminiscent of their torturous evening against Al-Ettifaq a few weeks ago — combined with a surprisingly well-organised Al-Khaleej side to limit Al-Nassr’s possession, as they ended the first 45 minutes without a shot on target.

With an away fixture against Al-Ain in the AFC Champions League Elite on Tuesday, Ange Postecoglou knew that managing the team’s tempo throughout the game was vital. But after losing to Al-Ittihad last Saturday, Al-Nassr could not afford to drop further points in what promises to be one of the most competitive SPL title races in recent memory.

It did not help that their opponents were going through their roughest start in recent years. Under head coach Jose Gomes, Al-Khaleej had failed to win any of their first six fixtures, drawing four and losing two — including a 5-1 defeat to Al-Hilal and a 3-0 loss to NEOM.

The expectation, then, was that Al-Nassr’s attack would overrun the Al-Khaleej defense. What they got instead was Al-Khaleej’s most composed performance of the season.

The icing on the cake for Al-Khaleej came on the stroke of half-time, when an Angelo Fulgini corner delivered to the far post found the unmarked Omar Mascarell, who headed home for the opener — with Bento’s failure to claim the ball helping Mascarell on his way.

Al-Nassr reorganized in the second half with Mohamed Simakan replacing Abdullah Al-Khaibari. The full-backs pushed up high and wide, with Samu Costa sitting in front of the back three as Al-Nassr’s front four moved freely through Al-Khaleej’s lines. But it was not until Abdullah Al-Hamddan came on in the 70th minute that Al-Nassr registered their first shot on target.

Seconds after coming on, Al-Hamddan received the ball outside the box from Inigo Martinez, who dispossessed Al-Khaleej midfielder Miguel Crespo — who had initially played the ball away after what appeared to be a foul. In the ensuing confusion, Al-Hamddan unleashed a curling effort from outside the box to beat Anthony Moris and send the Al-Nassr fans into raptures.

But — unlike in the aforementioned Al-Ettifaq clash, where Al-Nassr came back from 2-0 down to win 3-2 with a man down — they could not build on the equalizer.

Their best chance came in the 86th minute, when — from the same position Al-Hamddan scored from — Joao Felix fired at Moris, only for his deflected effort to be tipped away.

A golden opportunity arose on the counter in the first minute of stoppage time, with Felix driving toward goal and Ronaldo and Mane on either side of him — but he opted not to pass, as the attack broke down, and Al-Khaleej cleared the danger.

The draw leaves Al-Nassr frustrated — they now sit third behind Al-Ittihad and Al-Hilal. Having just won the SPL Manager of the Month award, it may be that Ange Postecoglou’s honeymoon is coming to an end.

Elsewhere, Al-Hilal bounced back emphatically after a 2-0 defeat to NEOM that ended their 47-game unbeaten league streak. The Blues hit Al-Taawoun for six, dominating every aspect of the game — and all but sealing Zarko Lazetic’s fate at Al-Taawoun. Prior to the game, Asharq Al-Awsat reported that the Al-Taawoun board had taken a collective decision to part ways with the Serbian regardless of the Al-Hilal result — and the scoreline certainly did not help his case.

It was a night to remember for Ollie Watkins and Gabriel Martinelli, who finally hit the ground running at their new club.

In the ninth minute, Ruben Neves delivered one of his trademark long balls to Watkins, who latched on despite the challenge of Awn Al-Saluli to finish past Mailson for the opener.

Nine minutes later, Martinelli opened his Al-Hilal account. The Brazilian winger slipped between Al-Taawoun midfielders Ashraf El-Mahdioui and Oscar Dorley to collect a loose ball in the box before doubling the lead. Martinelli added his second before half-time, when Watkins slipped him through on goal with a threaded ball — the former Arsenal man cutting inside to finish coolly into the net.

Al-Hilal pushed for more in the second half, and in the 50th minute Martinelli completed his hat-trick from Crysencio Summerville’s run to the byline, which teed him up for an easy finish. Watkins secured his brace in the 53rd minute when he won possession from the Al-Taawoun midfield and drove toward goal, leaving Mailson with no chance to make it 5-0.

Sultan Mandash completed the rout with a goal against his former club in the 75th minute, choosing not to celebrate.

It was a statement performance from Al-Hilal, who had come under immense pressure after that defeat to NEOM — which had coincided with the first start of the former Premier League trio of Summerville, Watkins and Martinelli together. The victory moves Al-Hilal into first place on 18 points ahead of the international break.

SPL action returns on Sunday for its final day before the league takes a break for the Arabian Gulf Cup in Jeddah. NEOM face Al-Fateh at 7:20 p.m., before two matches kick off at 9 p.m.: Al-Riyadh against Al-Kholood and Diriyah against Abha.

Europe has long been the primary target for US President Donald Trump’s tirades against traditional allies. However, Asia got a taste of this treatment last month when he cut short, at very short notice, the annual “Ulchi Freedom Shield” US military drills with South Korea.

Seoul is still angry at this development, especially given Trump’s later confirmation that he would also try to arrange a meeting with North Korea’s supreme leader, Kim Jong Un, in coming months. Signs of this frustration included President Lee Jae Myung’s call to speed up the development of new nuclear-powered submarines and his push to regain presidential wartime operational control of South Korean forces from the US, insisting that enhanced domestic military capabilities were needed in parallel with the alliance with Washington.

As remarkable as Trump’s decision was, it only confirmed the degree to which US partnerships with traditional allies have changed during his presidencies, as Washington demands wider concessions in return for US collaboration. These White House expectations include not only huge investments in the US, but also support in a conflict with Iran that has failed to unseat the regime in Tehran, while causing the largest global energy shock in a generation.

Certainly, some agree that Trump has legitimate concerns about South Korea. However, the manner in which he expressed his disagreement, in such a publicly humiliating way, is self-defeating. The US president said he told his South Korean counterpart that “we have 39,000 soldiers over there, guarding you from Kim Jong Un, your next-door neighbor, and you’re not going to help us on a very easy military operation in Iran? That’s strange.”

As ever, Trump’s statement requires a fact check. Currently, Seoul is scheduled this year to pay Washington about $1.19 billion of the estimated $5.5 billion-$6 billion it costs to station approximately 28,500 US troops in South Korea.

Even though that $1.19 billion sum represents a significant increase, Trump claimed that during his first term, Seoul pledged to pay much more: $3 billion. He further contends that the Biden administration failed to follow up on this pledge.

Trump’s decision to end the latest US-South Korea military exercises on Aug. 21 rather than Aug. 27, as scheduled, was embarrassing enough for Seoul. To also confirm that he planned to try to arrange another meeting with Kim was rubbing salt in the wounds.

His tirade has set back recent and extensive efforts by his team to reassure Asian allies about the US commitment to the region. At a recent meeting of Association of Southeast Asian Nations foreign ministers in the Philippines, for instance, Secretary of State Marco Rubio pledged about $2.5 billion of strategic investments in Southeast Asia. During a speech at Singapore’s Shangri-La conference in May, US Secretary of Defense Pete Hegseth emphasized the importance of the region to Washington.

White House expectations include not only huge investments in the US, but also support in a conflict with Iran.

Andrew Hammond

Asian allies also query the utility of reengaging with Kim, after Trump’s first three meetings with him, between 2017 and 2021, failed to deliver any diplomatic breakthroughs.

White House expectations include not only huge investments in the US, but also support in a conflict with Iran.

Andrew Hammond

The prospects appear slim for any sustained de-escalation of tensions in the world’s last Cold War-era frontier in the form of the prize of a verifiable, comprehensive denuclearization of North Korea. Pyongyang’s weapons program has only grown in size and sophistication since Trump’s first term. This potentially widens the negotiating divide between the two sides.

The central challenge in making any meaningful diplomatic process with Kim is, as it was during Trump’s first term, the differing US and Korean interpretations of what exactly would constitute “denuclearization” of the peninsula.

To Trump, this appears to mean unilateral North Korean disarmament. For Kim, it appears to be more about potentially lengthy negotiations in which Pyongyang should be treated as an equal to the US, providing him with the further potential for propaganda victories. In this context, Kim will continue to be wary of commitments on specific time frames, and will want to win further concessions from Trump before agreeing to any reduction in nuclear capabilities, let alone committing to full denuclearization.

As was the case during Trump’s first term, it is far from clear what, if any, sequencing is possible to move the process forward. After the last meeting between Trump and Kim, North Korea disputed the US assertion that the reason the talks collapsed was because Kim demanded a full roll-back of sanctions. Pyongyang said it asked only for partial sanctions relief, and that an offer had been made to permanently halt nuclear and long-range rocket testing.

One reason Pyongyang’s position will not shift far or fast is that it was Kim, not Trump, who emerged as the bigger beneficiary of their previous engagements. The North Korean leader made few concrete concessions while Trump called off US-South Korea military exercises, and held out the prospect of an easing of sanctions on Pyongyang if it did “something meaningful” on denuclearization.

Taking all of this together, the damage to US alliances in Asia from last month’s decisions therefore goes far beyond South Korea and might outlast Trump’s second term. The paradox is that the White House had spent much time in recent months reassuring allies of enduring US support for the region, efforts that have now been badly set back.

• Andrew Hammond is an associate at LSE IDEAS at the London School of Economics.

WASHINGTON: The US military said Saturday that it has pushed back 100 commercial vessels in the past 60 days under its blockade of Iranian ports.

“ZERO ships have passed through the blockade without US forces allowing. American service members remain laser focused on this mission,” US Central Command said on X.

Iran blocked the strategic Strait of Hormuz after the US and Israel launched attacks on Tehran in late February.

In response, the United States has sought to prevent ships from traveling to and from Iranian ports to deprive Tehran of revenue.