Israeli Prime Minister Benjamin Netanyahu and his military establishment are unlikely to accept a truce that would deprive them of the momentum gained from their destruction of Hezbollah’s infrastructure and the assassination of the Lebanese group’s senior leadership, including most recently of secretary general Hassan Nasrallah.
Both American and French diplomats are well aware of this, which could be why they are granting Israel time before pushing for a ceasefire, while exploring ways for de-escalation that could open the door to a broader settlement later. This complex, multi-party settlement – probably requiring several co-sponsors – must inevitably involve Iran, which is navigating between a policy of restraint and seeking a deal that won’t force Tehran to reconsider its reliance on proxies.
The US administration of President Joe Biden, however, has become one of wishful thinking, more focused on waiting passively for opportunities than taking decisive action on major issues. It has thus earned a reputation for impotence, having adopted a policy of appeasement, which has left it in the backseat of a vehicle driven by reckless actors. Today, it finds itself clinging to anyone who might pull it out of the growing regional conflict, which the US does not want to be dragged into – and in this, it has found a common cause with Tehran.
To his credit, Mr Biden has so far succeeded in restraining Iran from engaging in a war with Israel, which would force the US into the conflict alongside Israel. This hasn’t been difficult, as Iran, from the outset, has had no desire for a direct war with Israel, instead preferring to rely on its proxies through what it calls the “unity of resistance” fronts, in response to Israeli aggression in Gaza.
Iran has distanced itself from Hamas after the group’s miscalculated attacks on October 7, and some of its leaders are pointing to the growing public weariness on the Palestine-Israel issue. They are claiming that Iranians want their government to, instead, focus on their economy and livelihoods. If true, this marks a significant shift in the country. While preserving its nuclear capabilities remains a priority, Iran’s regional policy now requires adaptation to new realities and developments, which could entail making some sacrifices.
Iran has distanced itself from Hamas, and some of its leaders are pointing to the growing public weariness on the Palestine-Israel issue
One key aspect of this adaptation involves reconsidering Tehran’s relations with its proxies, should it wish to reach a major agreement with the US – one that could lead to a gradual lifting of sanctions and normalisation of relations with Washington.
There are indications that Iran could be seeking a shift in strategy.
Last year, Tehran’s rapprochement with Riyadh led to a curb on Houthi attacks on Saudi Arabia – an achievement that stands in stark contrast to Washington’s efforts to get the Houthis to cease their attacks on shipping in the Red Sea. The most significant surprise, however, has come in recent days, with Iran’s leadership distancing itself from Hezbollah in its hour of need, just as its military leadership crumbled under unprecedented Israeli strikes.
Iran’s leaders, across the spectrum, adopted the stance that Hezbollah is capable of defending itself. While Israel bombarded southern Lebanon and attacked Hezbollah leaders in Beirut’s southern suburbs, the new administration in Tehran was said to be indirectly negotiating with the US on the sidelines of the UN General Assembly in New York. The message was clear: Iran does not want to engage in direct war with any nation.
For the first time, driven by developments in Lebanon, the Biden administration has forcefully proposed that Iran change its regional behaviour and use its influence with Hezbollah, and other proxies, to prevent further escalation of the conflict. Furthermore, the US requested that Iran persuade Hezbollah to withdraw north of the Litani River, as stipulated in the 2006 UN Security Council Resolution 1701 and cease its rocket attacks on Israel.
These indirect negotiations have aimed to reach major understandings that could eventually lead to direct meetings, should Iran agree to soften its doctrine and transform itself from an adversarial state to a neutral one. Iran would also need to help enable a ceasefire in Gaza through its influence over Hamas and an end to the war in Lebanon by using its influence over Hezbollah. In return, the US would offer incentives, such as lifting sanctions, reaching nuclear agreements and ending Tehran’s international isolation.
In Washington’s view, if Tehran can convince Hezbollah to de-escalate, the Biden administration might be able to persuade Israel to halt its military operations in Lebanon and cease its open-ended attacks of Hezbollah’s leadership. Whether this can be achieved in the aftermath of Nasrallah’s death – and the subsequent bullish remarks from Iran’s supreme leader, Ayatollah Ali Khamenei – remains to be seen.
The American and French proposals are driven by an awareness of Iran’s tough position as it watches Israel degrade Hezbollah. Tehran is unlikely to abandon its prized asset as a political entity; rather, it aims for Hezbollah to survive and regenerate itself under its aegis.
It is my understanding that Iran will not intervene in Israel’s war on Hezbollah unless it launches ground operations into Beirut. This is noteworthy because, for Tehran, Beirut seems to hold more importance than southern Lebanon. This is a puzzle that may reflect its need to draw a red line – and it has chosen the Lebanese capital.
Mr Netanyahu, meanwhile, is at the peak of his confidence. The Israeli Prime Minister’s stated goal has been the safe return of residents to his country’s north, along with international guarantees, and will therefore continue his campaign of aggression. He has shown little regard for the civilians that his campaign has displaced or the devastation it has caused in southern Lebanon, effectively turning it into another Gaza.
Regardless of the diplomatic efforts of Washington and Paris, the initiative remains firmly in Israel’s hands as long as American military aid continues and the Biden administration pledges to fight alongside Israel should the conflict escalate into a regional war. The initiative is also in Iran’s hands as long as it insists on using Lebanon as a supporting front for Hamas in Gaza.
Sooner or later, however, both Israel and Hezbollah will need to de-escalate. Hezbollah is losing while Israel risks getting bogged down in two wars.
It is cynical to wonder why Iran as well as key member of the international community have chosen to watch as Israel severely degrades Hezbollah. Could there be a broader preparation for Iran’s return to the international stage as a neutral state?
In any case, one crucial point remains: no matter how triumphant Mr Netanyahu feels, Israel will remain under siege and isolated as long as it continues to impose new realities through air strikes and forced displacement. If its leadership is truly wise, it would call for a truce, with the conditions appearing to be ripe for a settlement with Lebanon.
The Lowdown
Kesari
Rating: 2.5/5 stars
Produced by: Dharma Productions, Azure Entertainment
Directed by: Anubhav Singh
Cast: Akshay Kumar, Parineeti Chopra
How much of your income do you need to save?
The more you save, the sooner you can retire. Tuan Phan, a board member of SimplyFI.com, says if you save just 5 per cent of your salary, you can expect to work for another 66 years before you are able to retire without too large a drop in income.
In other words, you will not save enough to retire comfortably. If you save 15 per cent, you can forward to another 43 working years. Up that to 40 per cent of your income, and your remaining working life drops to just 22 years. (see table)
Obviously, this is only a rough guide. How much you save will depend on variables, not least your salary and how much you already have in your pension pot. But it shows what you need to do to achieve financial independence.
SPEC%20SHEET%3A%20APPLE%20M3%20MACBOOK%20AIR%20(13%22)
%3Cp%3E%3Cstrong%3EProcessor%3A%3C%2Fstrong%3E%20Apple%20M3%2C%208-core%20CPU%2C%20up%20to%2010-core%20CPU%2C%2016-core%20Neural%20Engine%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EDisplay%3A%3C%2Fstrong%3E%2013.6-inch%20Liquid%20Retina%2C%202560%20x%201664%2C%20224ppi%2C%20500%20nits%2C%20True%20Tone%2C%20wide%20colour%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMemory%3A%3C%2Fstrong%3E%208%2F16%2F24GB%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStorage%3A%3C%2Fstrong%3E%20256%2F512GB%20%2F%201%2F2TB%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EI%2FO%3A%3C%2Fstrong%3E%20Thunderbolt%203%2FUSB-4%20(2)%2C%203.5mm%20audio%2C%20Touch%20ID%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EConnectivity%3A%3C%2Fstrong%3E%20Wi-Fi%206E%2C%20Bluetooth%205.3%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBattery%3A%3C%2Fstrong%3E%2052.6Wh%20lithium-polymer%2C%20up%20to%2018%20hours%2C%20MagSafe%20charging%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECamera%3A%3C%2Fstrong%3E%201080p%20FaceTime%20HD%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EVideo%3A%3C%2Fstrong%3E%20Support%20for%20Apple%20ProRes%2C%20HDR%20with%20Dolby%20Vision%2C%20HDR10%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EAudio%3A%3C%2Fstrong%3E%204-speaker%20system%2C%20wide%20stereo%2C%20support%20for%20Dolby%20Atmos%2C%20Spatial%20Audio%20and%20dynamic%20head%20tracking%20(with%20AirPods)%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EColours%3A%3C%2Fstrong%3E%20Midnight%2C%20silver%2C%20space%20grey%2C%20starlight%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EIn%20the%20box%3A%3C%2Fstrong%3E%20MacBook%20Air%2C%2030W%2F35W%20dual-port%2F70w%20power%20adapter%2C%20USB-C-to-MagSafe%20cable%2C%202%20Apple%20stickers%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20From%20Dh4%2C599%3C%2Fp%3E%0A
BUNDESLIGA FIXTURES
Friday (all kick-offs UAE time)
Hertha Berlin v Union Berlin (10.30pm)
Saturday
Freiburg v Werder Bremen (5.30pm)
Paderborn v Hoffenheim (5.30pm)
Wolfsburg v Borussia Dortmund (5.30pm)
Borussia Monchengladbach v Bayer Leverkusen (5.30pm)
Bayern Munich v Eintracht Frankfurt (5.30pm)
Sunday
Schalke v Augsburg (3.30pm)
Mainz v RB Leipzig (5.30pm)
Cologne v Fortuna Dusseldorf (8pm)
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
BORDERLANDS
Starring: Cate Blanchett, Kevin Hart, Jamie Lee Curtis
Director: Eli Roth
Rating: 0/5
Company%20profile
%3Cp%3E%3Cbr%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Khodar%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Cairo%20and%20Alexandria%2C%20in%20Egypt%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Ayman%20Hamza%2C%20Yasser%20Eidrous%20and%20Amr%20El%20Sheikh%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20agriculture%20technology%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20%24500%2C000%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Saudi%20Arabia%E2%80%99s%20Revival%20Lab%20and%20others%3Cbr%3E%3Cstrong%3EEmployees%3A%3C%2Fstrong%3E%2035%3C%2Fp%3E%0A
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
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.”
Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Saturday's results
Women's third round
- 14-Garbine Muguruza Blanco (Spain) beat Sorana Cirstea (Romania) 6-2, 6-2
- Magdalena Rybarikova (Slovakia) beat Lesia Tsurenko (Ukraine) 6-2, 6-1
- 7-Svetlana Kuznetsova (Russia) beat Polona Hercog (Slovenia) 6-4. 6-0
- Coco Vandeweghe (USA) beat Alison Riske (USA) 6-2, 6-4
- 9-Agnieszka Radwanska (Poland) beat 19-Timea Bacsinszky (Switzerland) 3-6, 6-4, 6-1
- Petra Martic (Croatia) beat Zarina Diyas (Kazakhstan) 7-6, 6-1
- Magdalena Rybarikova (Slovakia) beat Lesia Tsurenko (Ukraine) 6-2, 6-1
- 7-Svetlana Kuznetsova (Russia) beat Polona Hercog (Slovenia) 6-4, 6-0
Men's third round
- 13-Grigor Dimitrov (Bulgaria) beat Dudi Sela (Israel) 6-1, 6-1 -- retired
- Sam Queery (United States) beat Jo-Wilfried Tsonga (France) 6-2, 3-6, 7-6, 1-6, 7-5
- 6-Milos Raonic (Canada) beat 25-Albert Ramos (Spain) 7-6, 6-4, 7-5
- 10-Alexander Zverev (Germany) beat Sebastian Ofner (Austria) 6-4, 6-4, 6-2
- 11-Tomas Berdych (Czech Republic) beat David Ferrer (Spain) 6-3, 6-4, 6-3
- Adrian Mannarino (France) beat 15-Gael Monfils (France) 7-6, 4-6, 5-7, 6-3, 6-2