Hezbollah leader Hassan Nasrallah speaks on video link during a ceremony to mark a week since the assassination of Hezbollah commander Fouad Shukr, in Beirut. Getty Images
Hezbollah leader Hassan Nasrallah speaks on video link during a ceremony to mark a week since the assassination of Hezbollah commander Fouad Shukr, in Beirut. Getty Images
Hezbollah leader Hassan Nasrallah speaks on video link during a ceremony to mark a week since the assassination of Hezbollah commander Fouad Shukr, in Beirut. Getty Images
Hezbollah leader Hassan Nasrallah speaks on video link during a ceremony to mark a week since the assassination of Hezbollah commander Fouad Shukr, in Beirut. Getty Images

Hezbollah's Hassan Nasrallah tells Israel that 'punishment' is coming


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Hezbollah leader Hassan Nasrallah said on Tuesday that the group's retaliation for the assassinations of Ismail Haniyeh and Fouad Shukr was coming and would be carefully calculated.

It came as six people were killed in Lebanon and seven were injured in Israel after Hezbollah and the Israeli army exchanged fire across the border.

Nasrallah was unclear on what the group would do.

“We will respond, but carefully and slowly. Our response is coming. It will either be by ourselves or collectively with the axis,” he said, referring to the Axis of Resistance – an alliance of Iran-backed groups opposed to Israel and the US.

He was speaking at an event to mark a week since Hezbollah commander Mr Shukr was killed in an Israeli attack on Beirut.

“The Israelis' anticipation over the past week is part of the punishment, part of our response, and part of the battle,” Nasrallah said.

“Hezbollah will respond, Iran will respond, Yemen will respond, and the enemy is waiting and watching, calculating every move as a response.

“This is a major battle and this is a dangerous targeting and the resistance cannot, whatever the consequences, ignore it.

“Israel is the one who decided escalation. We have been very guarded over Lebanon and our country’s interests.”

Israel has been on high alert for attacks from Iran and Hezbollah since last week after its killing of Mr Shukr in Beirut and Hamas leader Mr Haniyeh in Tehran – acts which Israel said were in retaliation for the Majdal Shams attack.

Nasrallah said the group's attacks on Israel in the last few days did not constitute its retaliation.

But he did say Hezbollah had hit “new targets on new bases and new settlements”.

Nasrallah pointed out that Hezbollah drones were able to fly far into Israeli territory on Tuesday despite it being on high alert.

Hezbollah has said it will end its cross-border conflict with Israel when a ceasefire is agreed in Gaza, where more than 39,600 people have been killed, according to the enclave's Health Ministry, since the Hamas-led October 7 attack that killed about 1,200.

Nasrallah reiterated that Israeli Prime Minister Benjamin Netanyahu had no interest in a ceasefire with Hamas and sought only to displace the people of Gaza.

The escalating tension came during the most critical military phase since October, when Hezbollah and other Iran-allied groups across the Middle East started attacking Israeli targets in support of their ally Hamas in the Gaza Strip.

An Israeli strike on the southern Lebanese town of Meifadoun, near the city of Nabatieyeh, killed five people, Lebanon’s Health Ministry said. Separately, one person was killed and another seriously injured in an Israeli raid on the outskirts of the villages of Odaisseh and Rabb El Thalathin.

The Israeli army said it had attacked a “Hezbollah military structure” near Nabatieyeh. Hezbollah announced the death of five of its fighters on Tuesday evening.

In Israel, several people were injured by an Israeli missile interceptor attempting to deflect a barrage of projectiles launched by Hezbollah, the army said.

At least seven were injured during the overall barrage – one of whom was critically injured. The Israeli army did not clarify how many of the seven were injured by the failed interceptor missile.

Hezbollah announced it had launched a squadron of attack drones at the headquarters of the Golani Brigade and Egoz Unit 621, saying they had “achieved confirmed casualties”.

The Israeli army acknowledged “a number of hostile [unmanned aerial vehicles] were identified crossing from Lebanon” but that only one was successfully intercepted.

A man in his 40s was in a critical condition after being hit while driving by one of the Israeli interceptor missiles launched to meet Hezbollah's barrage.

“A preliminary investigation of the incident indicates that it was the fall of an interceptor that missed the target and hit the ground,” the military said.

Israeli police check the site of a Hezbollah explosive drone attack near the northern city of Nahariya, on August 6, 2024. AFP
Israeli police check the site of a Hezbollah explosive drone attack near the northern city of Nahariya, on August 6, 2024. AFP

Ambulance teams “have been dispatched to handle three locations in the Western Galilee, from which a total of seven casualties were evacuated: one in critical condition, one in mild-to-moderate condition, and five in mild condition”, Israel's national ambulance service said.

Air raid sirens sounded in 16 communities across northern Israel on Tuesday afternoon.

Videos circulated on social media showed the damage from the rocket barrage on the military base, with buildings and cars on fire.

The Lebanese group said the attack was in response to the Israeli assassination of Hezbollah member Ali Jawad in the southern Lebanese village of Ebba on Monday.

The Israeli army said Mr Jawad was a commander in Hezbollah’s elite Radwan force.

It came as Israeli fighter jets broke the sound barrier above Beirut in the minutes before Nasrallah's speech.

The disturbance shook the windows of The National’s Beirut bureau and were heard and felt throughout the city and its suburbs. Residents of Beirut said it was the loudest series of sonic booms to hit the Lebanese capital since fighting broke out in October.

The fallout from a deadly rocket attack on the Syrian Druze town of Majdal Shams in the occupied Golan Heights in late July, which killed a dozen children, has left the already volatile region on the course for an all-out confrontation.

Israel said Hezbollah's Mr Shukr orchestrated that attack, while the Lebanese group has denied involvement, instead claiming an Israeli interceptor missile was responsible for the children's deaths.

The two events marked an escalation with major repercussions for the Middle East in general and the Gaza ceasefire talks in particular.

Nasrallah said last week that the red lines crossed by Israel in its assassinations of Mr Shukr and Mr Haniyeh would usher in a “new phase” of the multifront conflict that will make Israel “weep”.

UK Foreign Secretary David Lammy has spoken to Iranian Foreign Minister Ali Bagheri Kani, asking Tehran to “think very carefully” about any retaliation against Israel, western officials have told The National.

Mr Lammy spoke to Mr Kani on Tuesday as concerns deepen over a co-ordinated missile attack on Israel.

“The message from the foreign secretary was loud and clear to think very carefully about any retaliation that they are planning in relation to Israel,” the western official said. But the source admitted it was “regrettable” that it was “a question of when, not if” there would be an Iranian response.

Mr Kani was particularly angry on how Israel had conducted its operations in Gaza and “the reality of the situation, when it appears the Israelis have taken out the [Hamas] chief negotiator” on Iranian soil.

Mr Lammy urged for the Gaza peace negotiations to resume as soon as possible. The conversation was a “good call” with a diplomatic tone, although both politicians “to some extent disagreed at times”.

He has cancelled several important bilateral meetings to remain in London this week to deal with any emergency and to speak to interlocutors “sending the message to all sides about taking a breath and that now is the time for cool heads”, the official said.

With additional reporting by Thomas Harding

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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.”

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Updated: August 07, 2024, 3:42 AM