Just six weeks before a highly consequential election, Washington is scrambling to avoid a full-scale war in the Middle East that could be triggered by an Israeli invasion of Lebanon. US President Joe Biden’s domestic policy and legislative achievements have been remarkable, but his handling of the Gaza war has been woeful. Now US policy faces a meltdown, not at the hands of adversaries like Hezbollah and Iran, but Israel.
The Biden administration adopted a focused policy of conflict containment of the war to Gaza, hoping to manage the strategic fallout from anything deemed plausible inside Gaza. This reflected deep anxiety about the war spreading, particularly into Lebanon, which might spiral into a regional conflict potentially drawing in the US and Iran, and even setting them directly against each other.
Some in the Biden administration have long harboured suspicions that Israeli Prime Minister Benjamin Netanyahu might hope to manoeuvre tensions over Lebanon to eventually, and at long last, secure the direct US strikes against Iran’s nuclear facilities that he has been demanding, without success, for almost two decades.
The Biden administration’s de facto carte blanche for Israel, particularly in the first few months of that savage war of vengeance against the entire Palestinian society in Gaza, was developed for numerous reasons. But an important factor was the belief that by supporting Israel strongly in Gaza, the Biden administration effectively positioned itself to block any Israeli impulse to unnecessarily spread the war into Lebanon.
That calculation appeared to play out precisely on several key occasions.
As early as October 12, Israeli Defence Minister Yoav Gallant and other hawks began pressing for an immediate and massive strike against Hezbollah. One of the key factors thwarting this effort was a forceful intervention by Mr Biden telling Mr Netanyahu and others that such an attack was unnecessary, unwise and would not be supported by Washington. Similar scenarios played out on at least two other occasions in the subsequent months in which Mr Biden was able to restrain Israel.
Israel has been able to establish escalation dominance, because even cautious Israeli leaders can see potential benefits from taking on Hezbollah under current circumstances
However, if things pan out over the subsequent days and weeks, an invasion of Lebanon could expand the Gaza war not just to Israel’s north but also potentially into an uncontrolled regional conflagration. Yet, at the time of writing, neither Israel nor Hezbollah had indicated any interest – at least in public – in a three-week pause in cross-border attacks that was being proposed by Washington and other regional and international governments.
The current standoff goes back to the immediate aftermath of the October 7 attacks, when Hamas demanded that Hezbollah and other militias in the Iranian-managed “axis of resistance” intervene with full force against Israel. Hezbollah’s leader, Hassan Nasrallah, disappeared into virtual hiding, and when he emerged after two weeks, he clarified that while the organisation would be intensifying its military activities, they would be directed at the Lebanon-Israel border area and, supposedly, in the interests of liberating two Lebanese towns still occupied by Israel.
The answer to Hamas was no, but Hezbollah did feel the need to ramp up cross-border attacks so as not to appear completely docile. But since that opening salvo, Israel has been able to establish escalation dominance, because even cautious Israeli leaders can see potential benefits from taking on Hezbollah under current circumstances.
In particular, they hope to inflict significant costs to Iran and its Arab regional militia network, which they believe have benefited virtually cost-free from the aftermath of the October 7 attacks. They would also be hoping to restore the domestic credibility and legitimacy of Israel’s national security institutions that were badly tarnished by the military meltdown on October 7.
Neither Iran nor Hezbollah see any point in a major war with Israel under current circumstances. Hezbollah’s main regional role has been to protect Iran from Israeli or American attacks on its homeland, and particularly its nuclear facilities. Tehran and Hezbollah have had no interest in a war over a place, Gaza, which has little strategic, historical or religious significance to them, or to rescue an organisation, Hamas, which has proven to be an unreliable ally of the “axis of resistance” in the past (Hamas broke it over the Syrian war between 2012-2019).
The main American point to Israel all along has been that this war is unnecessary and avoidable because the other side does not want to fight one.
Israeli ambivalence appeared to decisively dissipate after the pager and walkie-talkie sabotage detonations last week. Reports suggest that Israel wanted to use those explosions in the earliest stages of a potential ground attack on Lebanon, but growing suspicions about the malfunctioning or badly performing devices prompted a “use it or lose it” analysis in Israel. Therefore, if these reports are true, the explosives were detonated independent of a specific policy goal or broader strategy.
Yet predictably enough, a cycle of escalation immediately followed.
What Israel seeks from a ground invasion is not clear, but it potentially ranges from the establishment of a new occupied “security barrier” in southern Lebanon to an all-out effort to smash the infrastructure of Hezbollah similar to that conducted in Gaza against Hamas. Either way, Lebanon has once again been dragged into a conflict that has absolutely no connection to any Lebanese national interest. Yet Israel’s escalations may help obscure that, instead restoring Hezbollah’s popularity and the perceived legitimacy of its resistance.
For the Biden administration, an Israeli ground operation in Lebanon constitutes the ultimate failure of its Gaza war policy. The conflict will have spread despite Washington’s best efforts and because of Israel’s bellicosity rather than that of Hezbollah or Iran.
Mere weeks before a US election is hardly the time any administration is going to get tough on Israel. The Israelis know this, and they are taking full and cynical advantage of the Biden administration’s priority of securing the victory of Vice President Kamala Harris over former president Donald Trump.
Indeed, a ground offensive, if it were to happen, with no urgent need and just six weeks before the US presidential election, will be regarded by many Democrats as shocking and intolerable election interference on behalf of Mr Trump. Relations between Mr Netanyahu and Democrats may never recover.
It could also accelerate the advent of a deeper schism between the US, or at least Democrats, and Israel in general. That’s been a long time in the making, and Mr Netanyahu appears determined to make such a bitter reckoning inevitable, and perhaps imminent.
Meanwhile, his policies could leave Israel fighting ongoing insurgencies against renewed or intensified occupations to the south in Gaza, to the north in Lebanon, and quite possibly to the east in the West Bank. Israel’s only calm border would be the Mediterranean Sea. If that’s a formula for security, it’s hard to imagine what dangerous insecurity might look like.
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Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
Griselda
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ARGENTINA SQUAD
Goalkeepers: Franco Armani, Agustin Marchesin, Esteban Andrada
Defenders: Juan Foyth, Nicolas Otamendi, German Pezzella, Nicolas Tagliafico, Ramiro Funes Mori, Renzo Saravia, Marcos Acuna, Milton Casco
Midfielders: Leandro Paredes, Guido Rodriguez, Giovani Lo Celso, Exequiel Palacios, Roberto Pereyra, Rodrigo De Paul, Angel Di Maria
Forwards: Lionel Messi, Sergio Aguero, Lautaro Martinez, Paulo Dybala, Matias Suarez
SPECS
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PROFILE OF INVYGO
Started: 2018
Founders: Eslam Hussein and Pulkit Ganjoo
Based: Dubai
Sector: Transport
Size: 9 employees
Investment: $1,275,000
Investors: Class 5 Global, Equitrust, Gulf Islamic Investments, Kairos K50 and William Zeqiri
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
Kamindu Mendis bio
Full name: Pasqual Handi Kamindu Dilanka Mendis
Born: September 30, 1998
Age: 20 years and 26 days
Nationality: Sri Lankan
Major teams Sri Lanka's Under 19 team
Batting style: Left-hander
Bowling style: Right-arm off-spin and slow left-arm orthodox (that's right!)
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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Joker: Folie a Deux
Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson
Director: Todd Phillips
Rating: 2/5
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Famous left-handers
- Marie Curie
- Jimi Hendrix
- Leonardo Di Vinci
- David Bowie
- Paul McCartney
- Albert Einstein
- Jack the Ripper
- Barack Obama
- Helen Keller
- Joan of Arc
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Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
PROFILE OF HALAN
Started: November 2017
Founders: Mounir Nakhla, Ahmed Mohsen and Mohamed Aboulnaga
Based: Cairo, Egypt
Sector: transport and logistics
Size: 150 employees
Investment: approximately $8 million
Investors include: Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, Uber co-founder and former CTO Oscar Salazar
UAE currency: the story behind the money in your pockets