Israel trying to 'blow up the entire Middle East', says Russia's Lavrov

Russia’s Foreign Minister has accused Israel of trying to “blow up” the Middle East and warned that the country’s actions against Palestinians and the region threaten to ignite a wider conflict.

Speaking at the UN General Assembly on Saturday, Sergey Lavrov also projected cynicism over European countries' recent moves to recognise Palestine.

“Israel's illegal use of force against the Palestinians and aggressive actions against Iran, Qatar, Yemen, Lebanon, Syria and Iraq threaten to blow up the entire Middle East,” Mr Lavrov said.

UNGA 2025 live: UAE, Saudi Arabia, Egypt and Oman to address the UN on Saturday

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“There is … no justification for the collective punishment of Palestinians in the Gaza Strip, where children are dying from bombing and starvation, hospitals and schools are being destroyed and hundreds of thousands left without shelter.”

He called Israel’s reported plans to annex the West Bank “an attempt at a coup aimed at burying UN decisions on the creation of a Palestinian state”.

Turning to moves by European governments to recognise Palestinian statehood on September 22, Mr Lavrov suggested the timing was cynical.

“They had hoped that by the time the General Assembly session was convened, there would be nothing and no one left to recognise,” he told delegates.

France, Britain and several other western powers have recognised a Palestinian state over the past week.

The US, Israel’s closest ally, has strongly opposed the recognition drive. Yet, President Donald Trump pointedly voiced opposition to any annexation of the West Bank after key Gulf partners warned such a step would inflame an already volatile region.

Mr Trump later told reporters in New York that Egypt, Saudi Arabia, Qatar and the UAE were engaged in confidential talks with US backing.

“There are many rumours here about certain agreements taking shape,” Mr Lavrov said, noting speculation about a 21-point plan involving collective governance of Gaza and even Tony Blair as a potential governor.

Mr Lavrov also accused the West of “sabotaging” Iran diplomacy with UN sanctions.

“Yesterday, in the Security Council, the West rejected a rational proposal by China and Russia to extend the 2015 agreement on Iran's nuclear programme in order to allow time for diplomacy,” he said.

“This has finally exposed the West's policy of sabotaging the pursuit of constructive solutions in the UN Security Council and its desire to extract unilateral concessions from Tehran through blackmail and pressure.

“We consider such a policy to be unacceptable, and consider all manipulations to restore anti-Iranian UN sanctions, as well as the sanctions themselves, to be illegal,” he added.

The UN Security Council on Friday rejected a last-minute effort backed by Russia and China to delay for six months the reimposition of sanctions on Iran.

The vote on a draft resolution failed to secure the minimum nine votes needed in the 15-member Security Council.

On Ukraine, Mr Lavrov said that Moscow has no intention of attacking Europe, but any aggression against his country “will be met with a decisive response”.

His comments came after a spate of unauthorised flights into Nato airspace – incursions blamed on Russia – that have rattled Europe, and four days after Mr Trump declared Ukraine could ultimately win back every inch of territory lost to Russia, including Crimea.

The Kremlin has long insisted that Crimea, annexed in 2014, is non-negotiable, while the territories seized since Russia’s full-scale invasion in 2022 are regarded as integral parts of the Russian state.

Despite appeals from European leaders and Ukraine for further punishment, Mr Trump has so far resisted imposing new sanctions on Moscow.

Four reasons global stock markets are falling right now

There are many factors worrying investors right now and triggering a rush out of stock markets. Here are four of the biggest:

1. Rising US interest rates

The US Federal Reserve has increased interest rates three times this year in a bid to prevent its buoyant economy from overheating. They now stand at between 2 and 2.25 per cent and markets are pencilling in three more rises next year.

Kim Catechis, manager of the Legg Mason Martin Currie Global Emerging Markets Fund, says US inflation is rising and the Fed will continue to raise rates in 2019. “With inflationary pressures growing, an increasing number of corporates are guiding profitability expectations downwards for 2018 and 2019, citing the negative impact of rising costs.”

At the same time as rates are rising, central bankers in the US and Europe have been ending quantitative easing, bringing the era of cheap money to an end.

2. Stronger dollar

High US rates have driven up the value of the dollar and bond yields, and this is putting pressure on emerging market countries that took advantage of low interest rates to run up trillions in dollar-denominated debt. They have also suffered capital outflows as international investors have switched to the US, driving markets lower. Omar Negyal, portfolio manager of the JP Morgan Global Emerging Markets Income Trust, says this looks like a buying opportunity. “Despite short-term volatility we remain positive about long-term prospects and profitability for emerging markets.”

3. Global trade war

Ritu Vohora, investment director at fund manager M&G, says markets fear that US President Donald Trump’s spat with China will escalate into a full-blown global trade war, with both sides suffering. “The US economy is robust enough to absorb higher input costs now, but this may not be the case as tariffs escalate. However, with a host of factors hitting investor sentiment, this is becoming a stock picker’s market.”

4. Eurozone uncertainty

Europe faces two challenges right now in the shape of Brexit and the new populist government in eurozone member Italy.

Chris Beauchamp, chief market analyst at IG, which has offices in Dubai, says the stand-off between between Rome and Brussels threatens to become much more serious. "As with Brexit, neither side appears willing to step back from the edge, threatening more trouble down the line.”

The European economy may also be slowing, Mr Beauchamp warns. “A four-year low in eurozone manufacturing confidence highlights the fact that producers see a bumpy road ahead, with US-EU trade talks remaining a major question-mark for exporters.”