Lebanon reinstates lockdown amid economic crisis

Lebanon's President Michel Aoun (C) chairing a meeting of the Supreme Defense Council at the presidential palace in Baabda, east of the capital Beirut on November 10, 2020. (AFP)
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Updated 11 November 2020
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Lebanon reinstates lockdown amid economic crisis

  • Lebanese banks still control 90 percent of the circulation, which helps the country avoid additional increases in inflation rates

BEIRUT: As he met with a delegation from the Association of Depositors in Lebanon on Tuesday, the country’s central bank governor, Riad Salameh, stressed: “Lebanon is not bankrupt.”

The governor continued: “However, the financial sector is suffering due to the repercussions of the regional crisis that Lebanon has not been able to break free from, organized smear campaigns that were used as instruments of pressure over the past 3 years, and the public losses due to the increasing current account and budget deficits over the past 5 years. These factors had an impact on the national exchange rate.”

Salameh’s statement coincided with the decision of the Supreme Defense Council, which convened under the chairmanship of President Michel Aoun, to reinstate a two-week lockdown starting next Saturday, with a curfew from 5 p.m. to 5 a.m. every day in an attempt to reduce the country’s rate of coronavirus disease infections.

“Despite the under-performance and stagnation caused by the coronavirus and the country’s decision to not honor its external obligations (Eurobonds), which directly affected the flow of foreign capital and hard currencies, the central bank has proven that it has done its job in a professional way,” Salameh added.

“Lebanese banks still control 90 percent of the circulation, which helps the country avoid additional increases in inflation rates. Since the beginning of the crisis, the central bank granted banks loans in US dollars and Lebanese Pounds (LBP), allowing them to meet the demand on liquidity.

Estimates show that $10 billion is stored in Lebanese houses, which requires a new organizational mechanism to restore the trust in banks. This includes the setting up of a Lebanese digital currency project in 2021 to help implement a cashless system that allows the movement of the money market locally and abroad.

“Lebanon does not have any natural resources. That is why we need to preserve the gold we have because it is an asset that can be liquified in foreign markets if we are ever to face an inevitable fateful crisis,” Salameh pointed out.

The formation of the new Lebanese government is still facing hurdles due to the conditions imposed by the political parties on Prime Minister-designate Saad Hariri, especially by the head of the Free Patriotic Movement, Gebran Bassil, who was sanctioned by the US a few days ago.

The adviser to the French President Emmanuel Macron for the affairs of the Middle East and North Africa, Patrick Durel, is expected to arrive in Beirut on Wednesday night to try and assess the possibility of reviving the French initiative concerning the formation of a government whose mission is to implement reforms.

The US sanctions turned into a dispute between Bassil and the US Ambassador to Lebanon Dorothy Shea, who, on Monday, said Bassil “has a misunderstanding about how sanctions work and a lack of understanding about US policy.” This came in response to the press conference Bassil held last Sunday to defend himself.

Shea affirmed that the sanctions targeting Bassil were “against the individual not the party.”

She also welcomed Bassil’s decision to challenge the sanctions in a US court of law, adding that “Mr. Bassil complained that I did not forewarn him that he would be sanctioned on grounds of corruption, as if that was my responsibility to reveal prior to the designation. It was not. There are various authorities under US law for sanctions. The fact that Mr. Bassil has been designated at this time under the Global Magnitsky Act, does not mean that he or any others, for that matter, could not be sanctioned under a different authority at some later date.”

“During our exchanges, he expressed willingness to break with Hezbollah on certain conditions. He actually expressed gratitude that the US had got him to see how this relationship is disadvantageous to the party. Key advisors even informed me that they had encouraged Mr. Bassil to take this historic decision,” Shea revealed.

Bassil responded to Shea by asking her about “the evidence on the basis of which he was accused of being involved in corruption,” after she had said that such evidence could not be published. He also expressed his commitment to the alliance with Hezbollah.


Israel-Iran air war enters second week as Europe pushes diplomacy

Updated 8 sec ago
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Israel-Iran air war enters second week as Europe pushes diplomacy

  • European leaders push for Iran’s return to negotiations
  • Trump to decide within two weeks on possible military involvement

TEL AVIV/DUBAI/WASHINGTON: Israel and Iran’s air war entered a second week on Friday and European officials sought to draw Tehran back to the negotiating table after President Donald Trump said any decision on potential US involvement would be made within two weeks.
Israel began attacking Iran last Friday, saying it aimed to prevent its longtime enemy from developing nuclear weapons. Iran retaliated with missile and drone strikes on Israel. It says its nuclear program is peaceful.
Israeli air attacks have killed 639 people in Iran, said the Human Rights Activists News Agency. Those killed include the military’s top echelon and nuclear scientists. Israel has said at least two dozen Israeli civilians have died in Iranian missile attacks. Reuters could not independently verify the death toll from either side.
Israel has targeted nuclear sites and missile capabilities, but also has sought to shatter the government of Supreme Leader Ayatollah Ali Khamenei, according to Western and regional officials.
“Are we targeting the downfall of the regime? That may be a result, but it’s up to the Iranian people to rise for their freedom,” Israeli Prime Minister Benjamin Netanyahu said on Thursday.
Iran has said it is targeting military and defense-related sites in Israel, but it has also hit a hospital and other civilian sites.
Israel accused Iran on Thursday of deliberately targeting civilians through the use of cluster munitions, which disperse small bombs over a wide area. Iran’s mission to the United Nations did not immediately respond to a request for comment.
With neither country backing down, the foreign ministers of Britain, France and Germany along with the European Union foreign policy chief were due to meet in Geneva with Iran’s foreign minister to try to de-escalate the conflict on Friday.
“Now is the time to put a stop to the grave scenes in the Middle East and prevent a regional escalation that would benefit no one,” said British Foreign Minister David Lammy ahead of their joint meeting with Abbas Araqchi, Iran’s foreign minister.
Russian President Vladimir Putin and Chinese President Xi Jinping both condemned Israel and agreed that de-escalation is needed, the Kremlin said on Thursday.
The role of the United States, meanwhile, remained uncertain. On Thursday in Washington, Lammy met with US Secretary of State Marco Rubio and Trump’s special envoy to the region, Steve Witkoff, and said they discussed a possible deal.
Witkoff has spoken with Araqchi several times since last week, sources say. Trump, meanwhile, has alternated between threatening Tehran and urging it to resume nuclear talks that were suspended over the conflict.
Trump has mused about striking Iran, possibly with a “bunker buster” bomb that could destroy nuclear sites built deep underground. The White House said on Thursday Trump would decide in the next two weeks whether to get involved in the war.
That may not be a firm deadline. Trump has commonly used “two weeks” as a time frame for making decisions and has allowed other economic and diplomatic deadlines to slide.
With the Islamic Republic facing one of its greatest external threats since the 1979 revolution, any direct challenge to its 46-year-long rule would likely require some form of popular uprising.
But activists involved in previous bouts of protest say they are unwilling to unleash mass unrest, even against a system they hate, with their nation under attack.
“How are people supposed to pour into the streets? In such horrifying circumstances, people are solely focused on saving themselves, their families, their compatriots, and even their pets,” said Atena Daemi, a prominent activist who spent six years in prison before leaving Iran.


European, Iranian FMs to hold nuclear talks on Friday in Geneva

Updated 20 June 2025
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European, Iranian FMs to hold nuclear talks on Friday in Geneva

BRUSSELS, Belgium: Foreign ministers from Britain, France and Germany together with the EU’s top diplomat will hold nuclear talks with their Iranian counterpart in Geneva on Friday, officials and diplomats said.
The meeting comes as European countries call for de-escalation in the face of Israel’s bombing campaign against Iran’s nuclear program — and as US President Donald Trump weighs up whether or not to join the strikes against Tehran.
“We will meet with the European delegation in Geneva on Friday,” Iran’s Foreign Minister Abbas Araghchi said in a statement carried by state news agency IRNA.
European diplomats separately confirmed the planned talks, set to involve French Foreign Minister Jean-Noel Barrot, British Foreign Secretary David Lammy and German Foreign Minister Johann Wadephul, as well as EU foreign policy chief Kaja Kallas.
Lammy was in Washington on Thursday, where he was due to meet US Secretary of State Marco Rubio for talks focused on Iran, the State Department said.
Trump has said he is weighing up military action against Iran’s nuclear facilities as Israel pummels the country and Tehran responds with missile fire.
Israel has killed several top Iranian officials in its strikes and Araghchi’s adviser said that the minister was unfazed by fears he may be targeted next.
“Since it was announced that the Foreign Minister was heading to Geneva for negotiations with the European troika, I’ve received numerous messages expressing concern that the Zionist regime might target him,” Mohammad Hossein Ranjbaran said on X.
But he insisted that Araghchi “seeks martyrdom” and that “a major Israeli plot against him” had already been foiled “in Tehran just a few days ago.”
France, Germany, Britain and the European Union were all signatories of the 2015 nuclear agreement with Iran which Trump sunk during his first term in office.
The EU’s Kallas, in coordination with European countries, has insisted that diplomacy remains the best path toward ensuring that Iran does not develop a nuclear bomb.
On Wednesday, French President Emmanuel Macron said that European nations were planning to suggest a negotiated solution to end the Iran-Israel conflict. He has asked his foreign minister to draw up an initiative with “close partners” to that end.
Barrot has been in regular touch with his German and British counterparts since Israel launched massive air strikes against Iran on Friday.
Speaking in Paris after talks on the crisis on Thursday, Barrot said that the three nations “stand ready to bring our competence and experience on this matter.”
“We are ready to take part in negotiations aimed at obtaining from Iran a lasting rollback of its nuclear and ballistic missile programs,” he added.
The French top diplomat also underlined Iran’s “willingness to resume talks,” including with the United States “on condition there is a ceasefire.”
Israel says its air campaign is aimed at preventing Iran from acquiring nuclear weapons.
Iran had been enriching uranium to 60 percent — far above the 3.67-percent limit set by a 2015 deal with international powers, but still short of the 90-percent threshold needed for a nuclear warhead. Iran denies it is building nuclear weapons.


Israel says Iran fired cluster bomb-bearing missile

Updated 20 June 2025
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Israel says Iran fired cluster bomb-bearing missile

  • Israeli military officials provided no further details

Iran fired at least one missile at Israel that scattered small bombs with the aim of increasing civilian casualties, the Israeli military said on Thursday, the first reported use of cluster munitions in the seven-day-old war.
Israeli military officials provided no further details.
Israeli news reports quoted the Israeli military as saying the missile’s warhead split open at an altitude of about 4 miles and released around 20 submunitions in a radius of around 5 miles  over central Israel.
One of the small munitions struck a home in the central Israeli town of Azor, causing some damage, Times of Israel military correspondent Emanuel Fabian reported. There were no reports of casualties from the bomb.
Cluster bombs are controversial because they indiscriminately scatter submunitions, some of which can fail to explode and kill or injure long after a conflict ends.
The Israeli military released a graphic as a public warning of the dangers of unexploded ordnance.
“The terror regime seeks to harm civilians and even used weapons with wide dispersal in order to maximize the scope of the damage,” Israel’s military spokesperson, Brig. Gen. Effie Defrin, told a briefing.
Iran’s mission to the United Nations and Israel’s embassy in Washington did not immediately respond to requests for comment.
“They are egregious weapons with their wide-area destruction, especially if used in a civilian populated area and could add to the unexploded ordnance left over from conflicts,” said Daryl Kimball, executive director of the Arms Control Association advocacy group.
Noting that Iranian missiles can be imprecise, he said that Tehran should know that cluster munitions “are going to hit civilian targets rather than military targets.”
Iran and Israel declined to join a 2008 international ban on the production, stockpiling, transfer and use of cluster bombs that has been signed by 111 countries and 12 other entities. After extensive debate, the US in 2023 supplied Ukraine with cluster munitions for use against Russian occupation forces. Kyiv says Russian troops also have fired them. The three countries declined to join the Convention Against Cluster Munitions.


UK and Bahrain sign defense pact and £2bn investment deal

Updated 20 June 2025
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UK and Bahrain sign defense pact and £2bn investment deal

  • The agreements were signed during an official visit to London by Crown Prince Salman bin Hamad, who held talks with British Prime Minister Keir Starmer at Downing Street
  • The leaders express concern about the escalation of hostilities between Israel and Iran, and repeat prior calls for an immediate ceasefire agreement in Gaza

LONDON: Bahrain and the UK finalized two major agreements on Thursday during an official trip to London by Crown Prince Salman bin Hamad Al-Khalifa.

During a visit to No. 10 Downing Street for talks with British Prime Minister Keir Starmer, the prince and his host oversaw the signing of a Strategic Investment and Collaboration Partnership, SIP2 for short, said to represent a renewed framework for two-way investment between their countries.

The agreement will enable £2 billion ($2.7 billion) of investment by Bahrain’s private sector in key UK sectors including financial services, technology, manufacturing and decarbonization, officials said. It was signed by Bahrain’s finance minister, Sheikh Salman bin Khalifa Al-Khalifa, and the British chancellor of the exchequer, Rachel Reeves.

The second deal was a Defense Cooperation Accord which, according to officials, aims to enhance interoperability and joint training between the nations’ armed forces, building on the foundations of an already strong naval partnership. It was signed by defense ministers, Lt. Gen. Abdullah Al-Nuaimi and John Healey.

During his discussions with Starmer, Prince Salman reaffirmed the strength of relations between their countries, which he said continues to grow under the leaderships of King Hamad and King Charles, the Bahrain News Agency reported.

The leaders reviewed progress on a proposed UK-Gulf Cooperation Council free trade agreement, and the crown prince welcomed the UK’s decision to fully participate in the Comprehensive Security Integration and Prosperity Agreement, following a joint invitation in December from founding signatories Bahrain and the US.

Regional and wider international developments featured prominently in the discussions between Prince Salman and Starmer, who both expressed concern about the recent escalation of hostilities between Israel and Iran. They agreed on the urgent need to deescalate the conflict, ease tensions and resume dialogue.

They also reiterated previous calls for an immediate ceasefire agreement in Gaza, unimpeded humanitarian access to the territory, and the release of all hostages still held by Hamas.

Starmer congratulated Bahrain on its recent election as a nonpermanent member of the UN Security Council for a two-year term beginning in January 2026, and both leaders agreed to work closely to bolster their diplomatic efforts in the run-up to that.


Iran appoints new Revolutionary Guards intelligence chief

Updated 20 June 2025
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Iran appoints new Revolutionary Guards intelligence chief

  • He replaces Mohammed Kazemi

TEHRAN: Iran appointed a new chief of intelligence at its Revolutionary Guards on Thursday, the official Irna news agency said, after his predecessor was killed in an Israeli strike last week.
Major General Mohammad Pakpour, the commander of Iran’s Islamic Revolutionary Guards Corps , appointed Brig. Gen. Majid Khadami as the new head of its intelligence division, Irna said.
He replaces Mohammed Kazemi, who was killed on Sunday alongside two other Revolutionary Guards officers — Hassan Mohaghegh and Mohsen Bagheri — in an Israeli strike.
Pakpour had himself been recently appointed after Israel killed his predecessor Hossein Salami in a strike on June 13.
“During the years that our martyred commanders Kazemi and Mohaqeq led the IRGC Intelligence, we witnessed significant growth in all aspects of intelligence within the IRGC,” said Pakpour.
Israel launched air strikes on nuclear and military sites in Iran last week, claiming that its arch enemy was on the verge of developing a nuclear weapon, which Iran denies.
Israel killed several top Iranian officials, prompting a counter-attack by Iran, which on Thursday hit an Israeli hospital.
Upon his appointment by Iran’s supreme leader Ali Khamenei last Friday, Pakpour threatened to open “the gates of hell” in retaliation for Israel’s attacks.
Top Israeli figures have openly talked about killing Khamenei.