Hezbollah chief Nasrallah to break silence after night of escalation with Israel

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Hezbollah leader Hassan Nasrallah is scheduled to give a speech on Friday that will break weeks of silence since the start of the war between Israel and Hamas.

Nasrallah's speech is set to come after the heaviest night of cross-border fighting between Israeli forces and Hezbollah, the Iran-backed militant group based in south Lebanon.

Four people were killed on Thursday as the Israeli military pummelled southern Lebanon after a volley of Hamas and Hezbollah rockets were fired from across the border.

Rockets hit the Israeli border town of Kiryat Shmona in a barrage claimed by the Lebanese section of Hamas's armed wing.

Israel and Lebanese militants have exchanged fire across the border since the Israel-Gaza war began in early October, but last night was the most significant clash so far.

Hamas militants launched an attack on Israel from the Gaza Strip on October 7, and Lebanon's southern border has seen escalating retaliatory exchanges, mainly between Israel and Hezbollah, an ally of the Palestinian group, stoking fears of escalation into a wider war.

On Thursday, Iran's Foreign Minister Hossein Amirabdollahian warned that the region was “like a powder keg” and that “anything is possible” if Israel did not stop attacking Gaza. Iran is Hezbollah's principal backer and also supports Hamas.

US President Joe Biden has sent two aircraft carrier groups to the eastern Mediterranean and warned Hezbollah and others to stay out of the conflict.

“We've got significant national security interests at play here,” US National Security Council spokesman John Kirby told reporters.

“I don't believe we've seen any indication yet specifically that Hezbollah is ready to go in full force. So, we'll see what he has to say.”

Nasrallah's speech will be broadcast as part of an event in Beirut's southern suburbs, a Hezbollah stronghold, at 3pm local time on Friday. It has been framed as commemorating Hezbollah fighters killed by Israeli strikes.

Over in the Gaza Strip, health authorities said more than 9,000 people have been killed since the fighting began.

Amid heavy explosions in Gaza, Israeli "troops completed the encirclement of Gaza City, which is the focal point of the Hamas terror organization", military spokesperson Rear Admiral Daniel Hagari told reporters.

Troops were encountering mines and booby traps, said Brigadier General Iddo Mizrahi, the chief of Israel's military engineers.

"Hamas has learned and prepared itself well," he said.

Israel's death toll in Gaza was far higher than the military had announced, Abu Ubaida, spokesperson for the armed wing of Hamas, said in a televised speech on Thursday.

"Your soldiers will return in black bags," he said.

Israel has said it has lost 18 soldiers and killed dozens of militants since ground operations expanded on Friday.

Hamas and allied Islamic Jihad fighters were emerging from tunnels to fire at tanks, then disappearing back into the network, residents said and videos from both groups showed.

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks.

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.

8. Pillar 2 implementation

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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The UN General Assembly President in quotes:

YEMEN: “The developments we have seen are promising. We really hope that the parties are going to respect the agreed ceasefire. I think that the sense of really having the political will to have a peace process is vital. There is a little bit of hope and the role that the UN has played is very important.”

PALESTINE: “There is no easy fix. We need to find the political will and comply with the resolutions that we have agreed upon.”

OMAN: “It is a very important country in our system. They have a very important role to play in terms of the balance and peace process of that particular part of the world, in that their position is neutral. That is why it is very important to have a dialogue with the Omani authorities.”

REFORM OF THE SECURITY COUNCIL: “This is complicated and it requires time. It is dependent on the effort that members want to put into the process. It is a process that has been going on for 25 years. That process is slow but the issue is huge. I really hope we will see some progress during my tenure.”