GENEVA: The Palestinian economy is “in free fall,” the United Nations reported Thursday, with production in Gaza plunging to one-sixth of its level before Israeli forces began a blistering military response to the Oct. 7 attacks in the territory.
The report from UN Trade and Development, or UNCTAD, also warned of “rapid and alarming economic decline” in the West Bank, citing expanded Israeli settlements, land confiscations, demolition of Palestinian buildings and violence by settlers.
The report made no mention of corruption in Palestinian institutions.
“The Palestinian economy is in free fall,” Pedro Manuel Moreno, the agency’s deputy secretary-general, told reporters in Geneva. “The report calls for the international community to halt this economic free fall, address the humanitarian crisis, and lay the groundwork for lasting peace and development.”
That would include a “comprehensive recovery plan” for Palestinian areas, more international aid, the lifting of Israel’s blockade on Gaza, and the release of revenues and withheld funds for Palestinians retained by Israel, he said.
Gaza’s economy was weak even before the war, when unemployment was close to 50 percent, but the war has brought it to a near-standstill, with the UN estimating that roughly 90 percent of the territory’s population has been displaced, many living in squalid tent camps and dependent on international aid.
The war has also hurt the West Bank. After the Oct. 7 attacks, Israel immediately revoked work permits that allowed some 150,000 Palestinians to work inside Israel, depriving them of a key source of income.
A military crackdown that Israel says is aimed at militants has also rippled through the economy, with frequent army raids and military checkpoints making it difficult for people to work or move around.
With violence continuing, there’s little sign of any recovery plan being launched anytime soon.
Mutasim Elagraa, who coordinates UNCTAD’s assistance to Palestinians, said: “If we want to return Gaza to pre-October 2023, we need tens of billions of dollars, or even more, and decades.”
The ultimate goal is “to put Gaza on a path of sustainable development,” which will take more time and money, he said.
Economic output in Gaza plunged to just over $221 million in the half-year including the last quarter of 2023 and first quarter of 2024 — the last quarter for which figures are available — or about 16 percent of the total figure for the same half-year period in 2022 and 2023, when the total was just over $1.34 billion, the agency said.
Meanwhile, more than 300,000 jobs in the West Bank — home to some 3 million Palestinians — have been lost, driving unemployment rates up to 32 percent, up from under 13 percent before the conflict, the agency reported.
By early this year, as much as 96 percent of Gaza’s farming assets, including livestock farms, orchards, machinery and storage facilities, had been “decimated,” UNCTAD said.
Over 80 percent of businesses were damaged or destroyed, and the damage has continued to worsen, it said.
Since the 1990s, Israel has collected import duties for Palestinians — leaving about two-thirds of all Palestinian tax revenue under the control of the Israeli government. Israel has repeatedly withheld or suspended the payments, accusing the Palestinian Authority of encouraging violence or taking hostile steps against Israel in the UN and other international bodies.
From 2019 through April this year, Israel had withheld or deducted a total of more than $1.4 billion, crimping the ability of Palestinian officials to provide public services and pay salaries, pensions and debts, it said. The European Union last month said it paid some $43 million to help the Palestinian Authority pay salaries and pensions in the West Bank.
Israel’s offensive in Gaza has killed at least 41,084 Palestinians and wounded another 95,029, the territory’s Health Ministry said. The ministry’s count does not differentiate between civilians and militants.
Israel launched its campaign vowing to destroy the Palestinian group Hamas after the Oct. 7 attack on southern Israel in which militants killed some 1,200 people and abducted 250 others.
Palestinian economy is in free fall and will require billions to rebuild: UN
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Palestinian economy is in free fall and will require billions to rebuild: UN
- The report from UN Trade and Development, or UNCTAD, also warned of “rapid and alarming economic decline” in the West Bank, citing expanded Israeli settlements
- The report made no mention of corruption in Palestinian institutions
Egypt affirms keenness on Lebanon’s security, preventing violation of its sovereignty, statement says
- Hezbollah calls it biggest security breach in war with Israel
- Iranian ambassador to Lebanon reportedly injured
CAIRO: Egypt affirmed its keenness on Lebanon’s security and stability and preventing the violation of its sovereignty from ‘any outside party’, the foreign ministry said in a statement on Tuesday, shortly after deadly pager blasts in Lebanon that killed at least eight people.
Algeria’s president is being sworn in for a second term after lopsided election
- The figures showed Tebboune leading Cherif who had run with the Movement of Society for Peace by around 75 percentage points
ALGIERS, Algeria: Algerian President Abdelmadjid Tebboune was sworn in on Tuesday for a second term after being elected in a landslide vote marred by apathy and questions around the vote count.
The ceremony to inaugurate Tebboune’s second five-year term took place at the People’s Palace, in Club-des-Pins, a seaside resort on the west coast of the capital, Algiers. Tebboune’s two challengers, Islamist Abdellali Hassan Cherif and Socialist Youcef Aouchiche attended the ceremony that came three days after Algeria’s constitutional court certified Tebboune’s landslide victory in the Sept. 7 elections.
The court announced on Saturday after a recounting of the vote that Tebboune and his two opponents had called into question.
The figures showed Tebboune leading Cherif who had run with the Movement of Society for Peace by around 75 percentage points. Cherif won nearly 950,000 votes, or roughly 9.6 percent. Aouchiche’s Socialist Forces Front won more than 580,000 votes, about 6.1 percent.
With 7.7 million votes, the incumbent won 84.3 percent of the vote, surpassing his 2019 win by millions of votes and a double-digit margin.
Cherif and Aouchiche were criticized for participating in an election that government critics denounced as a way for Algeria’s political elite to make a show of democracy amid broader political repression.
Throughout the campaign, each of the three candidates emphasized participation, calling on voters and youth to participate and defy calls to boycott the ballot.
The nationwide turnout was 46.1 percent, surpassing the 2019 presidential election when 39.9 percent of the electorate participated, according to the court’s figures.
How an EU-led operation to salvage a burning Red Sea oil tanker hopes to prevent a major environmental disaster
- Operation Aspides launched a critical salvage mission to prevent an oil spill that threatens to devastate the marine ecosystem
- The Greek-flagged oil tanker, MV Sounion, was attacked by Houthi militants, raising fears of a major ecological and economic disaster
DUBAI: An EU-led operation to salvage a stricken oil tanker, which has been burning in the Red Sea for almost a month after coming under attack by Yemen’s Iran-backed Houthi militia, reached an important milestone on Monday, potentially staving off one of the worst ecological disasters in history.
The Greek-flagged oil tanker MV Sounion was attacked by Houthi militants on Aug. 21 off the coast of Hodeidah. Carrying 150,000 tonnes of crude oil, the tanker was left severely damaged and at risk of spilling its cargo into one of the world’s most fragile marine ecosystems.
On Sept. 14, the salvage mission, led by the EU’s Operation Aspides, finally got underway after repeated delays. On Monday, it issued a statement via the social media platform X announcing the ship had been moved.
The Sounion “has been successfully towed to a safe area without any oil spill,” the EU mission said. “While private stakeholders complete the salvage operation, Aspides will continue to monitor the situation.”
Until the vessel has been safely docked and unloaded, however, the environmental and commercial threat posed by a major spill remains.
The initial attack on the Sounion involved missiles launched by Houthi militants, which struck the vessel as it navigated through one of the busiest shipping lanes in the world. Soon after, the militants returned and detonated explosive charges, setting parts of the ship ablaze.
The attack is part of a broader Houthi campaign to disrupt global shipping as a show of solidarity with Palestinians amid the ongoing war in Gaza. The Houthis have targeted more than 80 vessels in the Red Sea since October 2023, killing at least four sailors.
In response to the attacks, the US and UK have mounted strikes against Houthi targets in Yemen. However, these strikes have failed to deter the militia’s attacks on shipping.
The Sounion attack presents a multifaceted crisis. The immediate concern is the possibility of a catastrophic oil spill, potentially four times worse than the 1989 Exxon Valdez disaster in Alaska, which spilled 11 million gallons of crude oil and devastated the local ecosystem.
The Red Sea’s marine life, including its renowned coral reefs, is especially vulnerable, and a spill could have lasting consequences, affecting species and habitats for many decades to come.
Julien Jreissati, Greenpeace’s Middle East and North Africa program director, warned that the Red Sea’s unique coral species, some of the most resilient to climate change, are under threat.
Should a spill occur, its “magnitude could be nearly impossible to contain, spreading contamination across vast areas of seawater and coastlines,” Jreissati said in a statement.
The long-term impact on marine life would be “devastating, with oil residues potentially persisting in the environment for years or even decades,” he said, adding that the “potential for a major environmental disaster is significant as the vessel could break apart at any time.”
IN NUMBERS
- 150k Tonnes of crude oil aboard the Greek-flagged MV Sounion.
- 80 Vessels targeted by the Houthi militia since Oct. 7, 2023.
The economic and humanitarian impact would be equally severe. The Red Sea is not only home to diverse marine life but is also a vital global shipping route, connecting Europe, Asia, and Africa. A major oil spill would disrupt this passage, affecting global trade.
Furthermore, a spill could contaminate desalination plants that supply fresh water to millions in Saudi Arabia, Yemen, and Eritrea.
The Red Sea’s closed nature, bordered by the Suez Canal to the north and the Bab Al-Mandab Strait to the south, means that any contamination could persist in the water for an extended period.
Efforts to salvage the Sounion have been fraught with complications. The EU’s Aspides naval mission, established in February to protect merchant vessels in the region, is leading the rescue operation, working closely with private sector actors.
Early in the operation, the crew of 23 Filipinos and two Russians, along with four private security personnel, were rescued by a French vessel and taken to Djibouti.
Aspides initially attempted to tow the vessel earlier in September, but the mission was paused due to unsafe conditions and concerns about further damage to the tanker. It was not until mid-September that salvage crews were able to secure a connection to tow the vessel.
The towing process has been dangerous. The tanker, still smoldering and billowing smoke, had to be moved at a “painfully slow” pace to a safe location in the northern Red Sea.
Greek news agencies reported over the weekend that the rescue vessel, Aigaion Pelagos, was towing the Sounion, escorted by the rescue tug Panormitis and several frigates equipped with firefighting and oil spill recovery capabilities.
According to the Greek state news agency ANA-MPA, “three frigates, helicopters and a special forces unit” were involved in the salvage operation.
“Despite challenging conditions, with temperatures reaching up to 400 degrees Celsius due to the fire, the specialized salvage team successfully secured the tanker to the Aigaion Pelagos,” ANA-MPA reported.
The destination of the vessel remains undisclosed, and both ships’ radars have been turned off for safety reasons.
The complexity of the operation reflects the broader challenges faced by the international community in addressing the fallout from Houthi attacks.
While the US Navy has offered assistance, the operation is currently being managed by private entities, with no direct involvement from American forces.
Sabrina Singh, the deputy spokesperson for the US Department of Defense, confirmed earlier this month that the US Navy is “standing by” but has not been called into action.
The Houthi militia has justified its attacks on international shipping as part of its resistance to Israeli actions in Gaza, claiming that the Sounion belongs to a company with alleged ties to Israel.
However, the militia has also attacked multiple vessels with no ties to Israel.
Houthi spokesperson Yahya Saree vowed further attacks as the anniversary of the Oct. 7 Hamas-led attack that triggered the Gaza war approaches, signaling that the threat to Red Sea shipping is far from over.
The Sounion crisis echoes the near catastrophe of the FSO Safer, another oil tanker that posed an enormous environmental threat in the Red Sea. The decaying vessel was anchored off the coast of Yemen for years with more than 1 million barrels of oil on board.
After months of international negotiations and funding efforts, the Safer was finally unloaded in 2023 under a UN-led effort, narrowly avoiding what could have been one of the worst oil spills in history.
The Safer’s precarious condition and the drawn-out efforts to secure it illustrated the difficulty of managing such crises in conflict zones.
Jordan armed forces downs drone attempting to cross Jordanian territory
- Petra: ‘The border guard forces ... shot it down and it was transferred to the specialized authorities’
- Jordan neighbors Syria and Iraq — both countries where Iranian proxy forces operate — and also is next door to Israel and the Israeli-occupied West Bank
CAIRO: Jordanian armed forces thwarted an attempt by a drone to cross the kingdom’s territory, Jordan’s state news agency Petra said on Tuesday, without clarifying the direction from which it was coming.
“The border guard forces ... shot it down and it was transferred to the specialized authorities,” Petra said citing an official source in the army’s leadership.
Petra also quoted the source as saying: “We are dealing firmly with various threats on the kingdom’s borders.”
Jordan neighbors Syria and Iraq — both countries where Iranian proxy forces operate — and also is next door to Israel and the Israeli-occupied West Bank.
The Jordanian statement came shortly after Lebanon’s Hezbollah group accused Israel of detonating pagers across Lebanon, killing at least eight people and wounding nearly 3,000 others including Iran’s envoy to Beirut.
In April, the kingdom shot down Iranian drones flying over to Israel.
More recently in September, a gunman from Jordan killed three Israelis at the Allenby Bridge border crossing in the occupied West Bank before security forces shot him dead.
US MQ-9 drone crashes near Yemen: Pentagon
- The Houthis claimed Tuesday that they had shot down three MQ-9s over the past week — a figure Ryder described as “too high”
WASHINGTON: A US MQ-9 Reaper drone crashed near Yemen, the Pentagon said Tuesday, after Iran-backed Houthi rebels claimed to have downed several of the aircraft in recent days.
“Yesterday, an MQ-9 did crash in the vicinity of Yemen. That is being investigated, but I don’t have any additional details to share,” Pentagon spokesman Major General Pat Ryder told journalists.
The Houthis claimed Tuesday that they had shot down three MQ-9s over the past week — a figure Ryder described as “too high.”
The Pentagon spokesman said he could not provide a specific number for security reasons, but that the Houthis’ figure “is not accurate.”
The latest drone crash came after the Pentagon confirmed in February that another MQ-9 — which can be used for both reconnaissance and strikes — went down off the Yemeni coast after apparently being struck by a Houthi missile.
The Houthis — who are opposed to government forces in Yemen and are one of several militant groups arrayed against Israel — began attacking shipping in the Red Sea and Gulf of Aden in November.
They say they are attacking Israel-linked vessels in support of Palestinians in Gaza, which has been ravaged by the Israel-Hamas war, but ships from multiple countries that have no ties to the conflict have been targeted.
