Hundreds of Hezbollah supporters cheered and fired guns into the air on Thursday as tankers carrying US-sanctioned Iranian fuel oil arrived in Baalbeck, a stronghold for the group in Lebanon, where petrol is scarce.
Women dressed in long black robes waved Hezbollah flags and threw rose petals and rice at the convoy of fuel tankers travelling from neighbouring Syria where the Iranian shipment docked.
While Hezbollah says the arrival of the fuel will ease Lebanon's crippling energy crisis, fuel importers previously told The National the shipment will last only three days.
Supporters of Iran and its allies in Lebanon celebrated the arrival of the tankers as a victory, but the US-sanctioned product may put Lebanon at risk and bring the small country closer to Iran’s orbit.
“We are here to celebrate a new victory,” said Hawra, a young woman in a chador carrying a basket of rose petals on her arm.
“These flowers are for the glorious convoy.”
Hezbollah Secretary General Hassan Nasrallah said that four ships carrying petrol from Iran were headed to Beirut via Baniyas.
He said a second ship with fuel oil would arrive at the Syrian port in a few days.
The first convoy will involve between 70 and 80 tankers with a total of three million litres of diesel, according to a Hezbollah statement.
Oil shipment analysts TankerTrackers.com had previously said 792 oil tankers would be needed to deliver the Iranian gasoil to Lebanon from Baniyas.
Located in the Bekaa Valley, in north-east Lebanon, Baalbeck is renowned for being the country’s drug capital and a stronghold for Hezbollah.
The group had planned celebrations and a procession to mark the occasion, with English banners adorning Baalbeck’s main entrance - a rare sight. Celebrations were officially cancelled at the last minute, but supporters gathered at the pre-arranged spot and time.
Despite the fanfare, experts say the fuel oil is not a solution to the crisis.
We are here to celebrate a new victory
Hawra,
Baalbeck resident
The sanctioned fuel oil on the first ship can cover Lebanon’s needs for only three days, fuel importers and private generator owners previously told The National.
At the entrance of the city, a large banner with Mr Nasrallah’s face plastered in the corner reads in English: “You broke their siege.”
The group says Lebanon’s economic collapse, caused by decades of corruption and mismanagement, is the result of an American siege. Hezbollah and its ally, the Syrian regime, are under US sanctions but Lebanon is not.
Bachar Al Halabi, MENA research analyst at Clipper Data, says the decision to bring fuel to Lebanon is "mostly about optics."
"They created a narrative that Lebanon is under siege, and that they broke that siege. None of that is true."
The Iranian shipment docked in Baniyas, Syria, earlier this week, with tankers ferrying the petrol by land, sparing Lebanese authorities the dilemma of accepting the shipment and risking US sanctions or refusing it and risking Hezbollah reprisals.
Information Minister George Kordahi said on Thursday after a Cabinet meeting that ministers did not discuss the issue of Iranian fuel entering Lebanon.
"I cannot say the government's position as long as we have not discussed the issue yet," he told the press.
After two years of economic collapse, Lebanon’s central bank is low on foreign currencies needed to import subsidised goods such as petrol and medicine, causing shortages. Lebanon relies on petrol to generate electricity. Shortages have caused power cuts lasting for up to 24 hours and hindering the work of hospitals.
Hezbollah said the fuel will be dispersed to civil defence, hospitals, homes for the elderly, orphanages, official water institutions, fire brigades in the Civil Defence, and the Lebanese Red Cross.
The fuel oil will also be distributed to Al Amanah fuel stations, where it will be sold to the public.
Homemaker Zahraa Zeaiter said she is just happy to have fuel oil.
“People are in need of everything, so when we heard there was help coming, of course I wanted to come here and celebrate,” she said. Baalbeck has been marginalised for years, she said.
Bringing scarce fuel oil to the country scored points for Hezbollah at a time when its constituents are suffering from shortages – and some protesters blame the group for exacerbating the country’s economic crisis.
Mr Al Halabi said importing fuel from Iran was a way for the armed group to claim victory without engaging in warfare.
"This is the biggest victory they can claim without paying a real cost."
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
SQUADS
UAE
Mohammed Naveed (captain), Mohamed Usman (vice-captain), Ashfaq Ahmed, Chirag Suri, Shaiman Anwar, Mohammed Boota, Ghulam Shabber, Imran Haider, Tahir Mughal, Amir Hayat, Zahoor Khan, Qadeer Ahmed, Fahad Nawaz, Abdul Shakoor, Sultan Ahmed, CP Rizwan
Nepal
Paras Khadka (captain), Gyanendra Malla, Dipendra Singh Airee, Pradeep Airee, Binod Bhandari, Avinash Bohara, Sundeep Jora, Sompal Kami, Karan KC, Rohit Paudel, Sandeep Lamichhane, Lalit Rajbanshi, Basant Regmi, Pawan Sarraf, Bhim Sharki, Aarif Sheikh
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
The National in Davos
We are bringing you the inside story from the World Economic Forum's Annual Meeting in Davos, a gathering of hundreds of world leaders, top executives and billionaires.
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The biog
Name: Mariam Ketait
Emirate: Dubai
Hobbies: I enjoy travelling, experiencing new things, painting, reading, flying, and the French language
Favourite quote: "Be the change you wish to see" - unknown
Favourite activity: Connecting with different cultures
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request