Israeli Defense Chief Says Temporary Truce with Hamas is Possible

FILE -Israeli Prime Minister Benjamin Netanyahu, left and Defense Minister Yoav Gallant attend a press conference in the Kirya military base in Tel Aviv, Israel, Oct. 28, 2023. (Abir Sultan/Pool Photo via AP, File)
FILE -Israeli Prime Minister Benjamin Netanyahu, left and Defense Minister Yoav Gallant attend a press conference in the Kirya military base in Tel Aviv, Israel, Oct. 28, 2023. (Abir Sultan/Pool Photo via AP, File)
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Israeli Defense Chief Says Temporary Truce with Hamas is Possible

FILE -Israeli Prime Minister Benjamin Netanyahu, left and Defense Minister Yoav Gallant attend a press conference in the Kirya military base in Tel Aviv, Israel, Oct. 28, 2023. (Abir Sultan/Pool Photo via AP, File)
FILE -Israeli Prime Minister Benjamin Netanyahu, left and Defense Minister Yoav Gallant attend a press conference in the Kirya military base in Tel Aviv, Israel, Oct. 28, 2023. (Abir Sultan/Pool Photo via AP, File)

Israel’s defense minister says the window is closing on an opportunity to reach a temporary cease-fire deal with Hamas that he believes could also bring calm to the country’s volatile northern border with Lebanon.
Speaking to reporters, Yoav Gallant said that conditions are ripe for at least a six-week pause in fighting that would include the release of many of the hostages held in Gaza. However, he would not commit to a permanent end to the fighting, as Hamas has demanded, raising questions about the feasibility of a deal.
“Israel should achieve an agreement that will bring about a pause for six weeks and bring back hostages,” he said. After that period, he said, “we maintain the right to operate and achieve our goals — including the destruction of Hamas.”
The United States, along with mediators Egypt and Qatar, has been working for months to broker a cease-fire to end the devastating war between Israel and Hamas. A main area of disagreement has been Hamas’ demand for an end to the nearly year-old war and a full withdrawal of all Israeli troops from the Gaza Strip.
Israeli Prime Minister Benjamin Netanyahu has raised a new sticking point in recent weeks, saying that Israel must remain stationed in a strategic corridor along Gaza’s border with Egypt indefinitely.
Gallant has been quoted in Israeli media as saying that Israel could withdraw from the corridor for six weeks — to allow hostages to go free without risking Israel’s security. The two men reportedly got into a heated shouting match at a recent Cabinet meeting where ministers overwhelmingly sided with Netanyahu.
During Monday’s meeting with foreign journalists, Gallant was asked about his relationship with the prime minister.
“As defense minister, my first priority is the state of Israel and those who protect her, and then everything else,” The Associated Press quoted him as saying.
The current US-led proposal calls for a three-phase plan, beginning with a six-week pause in fighting during which Hamas would release some of the roughly 70 hostages who are still believed to be alive and held by the militants.
In exchange, Israel would free dozens of Palestinian prisoners, withdraw troops from Palestinian population centers, allow displaced Gazans to return to their original place of residence and facilitate the influx of large amounts of badly needed humanitarian aid.
White House national security spokesman John Kirby said on Monday that Hamas had sought changes to the evolving proposal, calling it the “main obstacle” to a deal. Hamas rejected Kirby's allegations as “baseless” and again accused the US of hindering an agreement by siding with Israel.
Gallant cast doubt on Hamas' intentions and was skeptical about whether the deal’s second phase — which is to include the release of the remaining hostages and a complete halt to the fighting — could be implemented.
He said repeatedly that Israel remains committed to its “war goals” — bringing home all hostages, destroying Hamas’ military and governing capabilities, and making sure the group can never threaten Israel again.
With Hamas repeatedly regrouping in areas of Gaza that Israeli troops have left, and with no plan for an alternative postwar government, it remains unclear when or if these goals can be fully achieved.
Gallant accused Hamas of intransigence in the talks and called for more international pressure on the militant group. Still, he said that after inflicting heavy damage recently on Hamas in Gaza and Hezbollah in Lebanon, there is an opportunity for at least the first phase of the deal.
He said he believed a truce with Hamas could also lower tensions with Hezbollah and allow displaced Israelis to return to their homes in northern Israel, near the Lebanese border.



Iraq Faces 2025 Fiscal Squeeze Amid Oil Price Decline, Adviser to PM Says 

A general view shows an oil rig used in drilling at the Zubair oilfield in Basra, Iraq, July 5, 2022. (Reuters)
A general view shows an oil rig used in drilling at the Zubair oilfield in Basra, Iraq, July 5, 2022. (Reuters)
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Iraq Faces 2025 Fiscal Squeeze Amid Oil Price Decline, Adviser to PM Says 

A general view shows an oil rig used in drilling at the Zubair oilfield in Basra, Iraq, July 5, 2022. (Reuters)
A general view shows an oil rig used in drilling at the Zubair oilfield in Basra, Iraq, July 5, 2022. (Reuters)

Iraq faces a budget crunch in 2025 due to the slump in the price of oil, the overwhelming source of government revenue, a top economic adviser to Prime Minister Mohammed Shia al-Sudani said.

"We don't anticipate major problems in 2024, but we need stricter financial discipline for 2025," Mudher Saleh told Reuters in an interview late on Monday.

Iraq, OPEC's second-largest producer, is heavily dependent on oil revenues. The hydrocarbons sector accounts for the vast majority of export earnings and some 90% of state revenue.

This huge reliance on oil makes Iraq particularly vulnerable to fluctuations in global crude prices.

Still, Iraq increased its budget in 2024 even after record spending in 2023, when more than half a million additional employees were hired into the already-bloated public sector and a capital-intensive nationwide infrastructure revamp began.

The 2024 budget rose to 211 trillion dinars ($161 billion) from 199 trillion dinars ($153 billion) in 2023, maintaining a projected deficit of 64 trillion dinars, Saleh said.

The budget assumes an oil price of $70 per barrel in 2024, around $6 less than the likely average price this year.

Saleh said that paying salaries and pensions on time remain a top priority. They account for 90 trillion dinars ($69 billion), or over 40% of the budget, and are a key factor of social stability in Iraq.

"The government will pay salaries even if it costs everything. Salaries are holy in Iraq," he said.

Infrastructure development, meanwhile, could be refocused on the most strategic projects - such as key road and bridge works in the capital Baghdad - if the state finds itself in a financial crunch, he said.

To bolster finances, Iraq is focusing on increasing non-oil revenues through improved tax collection but is not exploring any new levies, Saleh said.

He estimated that Iraq loses up to $10 billion annually due to tax evasion and customs-related problems.

Concerns for the 2025 budget reflect a challenging global oil market. Oil prices have been on a downward trend since mid-2022, with Brent crude, the international benchmark, falling from over $120 per barrel to below $75 in recent days.

This decline is largely attributed to weakening global demand, particularly from China, the world's largest oil importer, as its economic growth slows down.