The well-informed journalist Barak Ravid published an article on November 12 in which he reported that US Secretary of Defence Lloyd Austin had contacted his Israeli counterpart, Yoav Gallant, to express concern about Israel’s escalation of tensions in Lebanon with Hezbollah. Mr Austin allegedly told Mr Gallant that by doing so, Israel only made a regional war more likely.
An oddly parallel story was published by Reuters on November 16, which described a meeting in early November between Ismail Haniyeh, the head of the Hamas Political Bureau, and Ayatollah Ali Khamenei, the Iranian supreme leader. Mr Khamenei is said to have told Mr Haniyeh: “You gave us no warning of your October 7 attack on Israel and we will not enter the war on your behalf,” even if the Iranians said they would continue to support Hamas politically and morally.
One could wonder about the accuracy of both news items, of course. However, both were amply sourced and, in many regards, reflected the reality we have seen in the past month and a half: a Biden administration that has sought to avoid an Israeli overreaction to Hamas’s October 7 assault, by repeatedly reassuring and backing Israel. And an Iran and Hezbollah that have kept up the pressure on Israel and the US, but without crossing red lines in their operations against them.
Soon after October 7, US National Security Adviser Jake Sullivan told an interviewer that the Biden administration and Iran were engaged in back-channel talks. The Americans reportedly used these to warn Tehran against an escalation. That’s why President Joe Biden sent two aircraft carrier battle groups to the Eastern Mediterranean to show support for Israel.
The Americans have taken a coldly hardnosed view of things, no matter how many Palestinian lives have been lost as a consequence
Critics of the Biden administration have focused on how it has supported Israel’s pitiless bombardment of Gaza, blocking all efforts to impose a ceasefire. But the reality is that the Americans have taken a coldly hardnosed view of things, no matter how many Palestinian lives have been lost as a consequence.
For Washington, there are two priorities today: to support an ally at a time when what is known as the Iran-backed Axis of Resistance feels it scored a major victory on October 7; and to embrace Israel so fully that the US retains major leverage over Israeli actions, allowing it to have a decisive say in the outcomes, especially averting a regional war in the run-up to an American election year.
While there remains room for error, and few observers are yet reassured that a Lebanon war can be avoided, to understand the dynamics of what lies ahead, it’s probably best to look at this through the prism of what the Americans and Iranians decide. In the end, it seems, they are the final reference point for their respective allies, and for now both appear to want to forestall the worst.
Twice in November, Amos Hochstein, a special US envoy, was sent by the White House, first to Beirut then later to Israel. On the face of it, he told the Lebanese and Israelis that they needed to maintain stability along their border. He may well have also sent a direct message along these lines to Hezbollah, accompanied by reassurances that the US did not intend to strike the party.
In his speech days after Mr Hochstein’s visit to Beirut, Hassan Nasrallah, Hezbollah’s secretary general, took a fairly restrained position on the conflict, refraining from engaging in escalatory language. According to Mr Ravid, the Americans saw this “as a sign that their messages were being heard”.
What appears to be taking place today is a “dialogue of deterrence” between the US and Iran, which encompasses their respective allies Israel and Hezbollah. Both sides want to keep away from a war that would lay waste to the region, but also seek to avoid steps that undermine perceptions of their own strength and that of their allies, which are essential to credibly deterring their enemies.
That is why questions still remain as to whether, if Israel poses an existential threat to Hamas, the Iranian and Hezbollah position will shift. While that’s possible, one must also ask why, if Hezbollah did not enter the war fully already, it might do so months into a conflict in which Gaza has suffered so dramatically?
That brings us back to Mr Khamenei’s conversation with Mr Haniyeh. If the report is accurate, it would suggest that while Iran remains committed to the alliance with Hamas, it is unwilling to pay a high price for Hamas’s timing of the attacks if this caught other members of the Axis of Resistance off guard.
In other words, Iran’s (and its allies’) interests and those of Hamas are not the same. This makes one wonder whether Hezbollah will go all the way to prevent Hamas’s defeat in Gaza, or whether the party sees a devastating war with Israel as too great a threat to its power in Lebanon to risk it. For now, no one can say.
This is where the Americans have to decide what to do. The Biden administration doesn't want a regional war, but last week Mr Biden also said that Hamas had to be eliminated. The latter objective may well be incompatible with the former. So, were the Americans merely engaging in brinkmanship?
Whatever the answer is, it will very probably emerge only from the dialogue of deterrence taking place behind the scenes between Washington and Tehran.
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MATCH INFO
World Cup 2022 qualifier
UAE v Indonesia, Thursday, 8pm
Venue: Al Maktoum Stadium, Dubai
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RESULT
Deportivo La Coruna 2 Barcelona 4
Deportivo: Perez (39'), Colak (63')
Barcelona: Coutinho (6'), Messi (37', 81', 84')
Company name: Farmin
Date started: March 2019
Founder: Dr Ali Al Hammadi
Based: Abu Dhabi
Sector: AgriTech
Initial investment: None to date
Partners/Incubators: UAE Space Agency/Krypto Labs
UAE currency: the story behind the money in your pockets
JAPANESE GRAND PRIX INFO
Schedule (All times UAE)
First practice: Friday, 5-6.30am
Second practice: Friday, 9-10.30am
Third practice: Saturday, 7-8am
Qualifying: Saturday, 10-11am
Race: Sunday, 9am-midday
Race venue: Suzuka International Racing Course
Circuit Length: 5.807km
Number of Laps: 53
Watch live: beIN Sports HD
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
THE SPECS
Engine: AMG-enhanced 3.0L inline-6 turbo with EQ Boost and electric auxiliary compressor
Transmission: nine-speed automatic
Power: 429hp
Torque: 520Nm
Price: Dh360,200 (starting)
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Will the pound fall to parity with the dollar?
The idea of pound parity now seems less far-fetched as the risk grows that Britain may split away from the European Union without a deal.
Rupert Harrison, a fund manager at BlackRock, sees the risk of it falling to trade level with the dollar on a no-deal Brexit. The view echoes Morgan Stanley’s recent forecast that the currency can plunge toward $1 (Dh3.67) on such an outcome. That isn’t the majority view yet – a Bloomberg survey this month estimated the pound will slide to $1.10 should the UK exit the bloc without an agreement.
New Prime Minister Boris Johnson has repeatedly said that Britain will leave the EU on the October 31 deadline with or without an agreement, fuelling concern the nation is headed for a disorderly departure and fanning pessimism toward the pound. Sterling has fallen more than 7 per cent in the past three months, the worst performance among major developed-market currencies.
“The pound is at a much lower level now but I still think a no-deal exit would lead to significant volatility and we could be testing parity on a really bad outcome,” said Mr Harrison, who manages more than $10 billion in assets at BlackRock. “We will see this game of chicken continue through August and that’s likely negative for sterling,” he said about the deadlocked Brexit talks.
The pound fell 0.8 per cent to $1.2033 on Friday, its weakest closing level since the 1980s, after a report on the second quarter showed the UK economy shrank for the first time in six years. The data means it is likely the Bank of England will cut interest rates, according to Mizuho Bank.
The BOE said in November that the currency could fall even below $1 in an analysis on possible worst-case Brexit scenarios. Options-based calculations showed around a 6.4 per cent chance of pound-dollar parity in the next one year, markedly higher than 0.2 per cent in early March when prospects of a no-deal outcome were seemingly off the table.
Bloomberg