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Eight Key Iranian Developments Following ‘Al-Aqsa Flood’

In December, Iranian Supreme Leader Ali Khamenei led the funeral prayer for Quds Force leader Razi Mousavi. Photo: Khamenei's website
In December, Iranian Supreme Leader Ali Khamenei led the funeral prayer for Quds Force leader Razi Mousavi. Photo: Khamenei's website
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Eight Key Iranian Developments Following ‘Al-Aqsa Flood’

In December, Iranian Supreme Leader Ali Khamenei led the funeral prayer for Quds Force leader Razi Mousavi. Photo: Khamenei's website
In December, Iranian Supreme Leader Ali Khamenei led the funeral prayer for Quds Force leader Razi Mousavi. Photo: Khamenei's website

As the “Al-Aqsa Flood” operation by Hamas and the Gaza war began, Iran was already dealing with the fallout from protests sparked by the death of Mahsa Amini, making the autumn of 2022 one of the bloodiest in the country’s recent history.

The war in Gaza erupted at a crucial time for Iran’s leadership, which was facing international pressure over its crackdown on protests, its drone supply to Russia, and stalled nuclear talks.

From the start, Tehran described Hamas’ attack as a “natural and spontaneous reaction” to what it called Israel's “provocative war policies” and actions by the far-right Israeli Prime Minister.

Iranian officials denied any role in planning the operation, but their diplomatic moves suggested they were prepared for the conflict’s impact on the region.

Less than a week after the attack, Iran’s late Foreign Minister, Hossein Amir-Abdollahian, began a regional tour, meeting with leaders of countries and groups allied with Iran, including in Iraq, Syria, Lebanon, and Qatar.

His aim was to coordinate efforts and send regional messages.

Iran also warned Israel that it could face multiple fronts if its military actions in Gaza didn’t stop.

Tehran has since worked to strengthen the image of armed groups in the region, pushing to legitimize its support for these factions amid the ongoing political and regional unrest.

This marked a key moment for Iran, as Tehran claimed it had elevated the “Resistance Axis” groups from a regional to a “global” level, referring to this shift as a move from the “World of Resistance” to the “Global Resistance.”

In doing so, Iran, which had been trying to ease tensions with its neighbors, adopted a more aggressive stance towards groups linked to it. Many saw this as part of Iran’s broader strategy to expand its influence across the region.

Officially, Iran told the international community that these groups act independently, make their own decisions, and produce their own weapons.

However, several Iranian officials have acknowledged the role of Gen. Qassem Soleimani and the Revolutionary Guards in supplying weapons and technology to these groups.

Iran’s second significant move after the Al-Aqsa Flood came a month into the Gaza war when Supreme Leader Ali Khamenei called for cutting off Israel’s “economic lifelines,” especially oil and energy routes.

Iranian-backed groups, especially the Houthis, began attacking commercial ships in the Red Sea, disrupting shipping for months.

At the same time, Iran-aligned militias in Iraq launched drone attacks on Israel and US bases in the region.

The US responded after one of its bases in Syria was attacked, striking positions held by these militias.

Politically, Iran insisted that its allied groups’ demands be met for any Gaza ceasefire, and it opposed international peace proposals, especially the “two-state solution.”

In December, Iran’s foreign minister even noted that both Iran and Israel rejected the two-state plan.

In the third phase, Israel ramped up airstrikes against Iranian forces in Syria. In December, an Israeli strike killed Razi Mousavi, a key Iranian logistics officer.

A month later, the Revolutionary Guards confirmed the death of their intelligence chief in Syria. The biggest blow came in April, when an Israeli airstrike on a meeting at the Iranian consulate killed Gen. Mohammad Reza Zahdi, Iran’s top military commander in Syria and Lebanon.

In its fourth major escalation, Iran nearly went to war with Israel after responding to the bombing of its consulate by launching hundreds of missiles and drones directly from its territory.

Israel claimed it intercepted the attack but retaliated by striking a radar system at a military airport in Isfahan, near a key nuclear site.

This clash heightened fears of a shift in Iran’s nuclear ambitions, with growing talk in Tehran about developing deterrent weapons and Israel threatening to strike Iran’s nuclear facilities.

The fifth key moment for Iran followed the deaths of President Ebrahim Raisi and Foreign Minister Hossein Amir-Abdollahian in a helicopter crash near the Azerbaijani border. Authorities quickly denied conspiracy theories, ruling out an Israeli attack.

Three months later, Iran’s military confirmed the crash was caused by bad weather, but some questions remained unanswered.

During this period, Iran’s political focus shifted away from the Gaza war due to the presidential election and efforts to form a new government.

Candidates in the election avoided discussing the Gaza conflict or Iran’s support for Hamas, despite criticism over ignoring pressing issues like sanctions and stalled nuclear negotiations.

Most candidates only praised Iran’s missile program and vowed to strengthen deterrence against Israel.

The sixth major event occurred during the inauguration of Iran's new president, Masoud Pezeshkian, on July 30, when Hamas leader Ismail Haniyeh was assassinated at a Quds Force facility in northern Tehran, marking a significant turn in the Gaza war.

Khamenei promised to respond to the “violation of Iranian sovereignty” following the assassination of a “guest of Iran.”

Officials and military leaders varied in their tone and language of threats but consistently stressed the need for a response as time passed and doubts about Iran’s actions increased.

Haniyeh's assassination in Tehran raised significant questions about the operation, especially regarding potential security breaches.

The seventh key moment was marked by the “Pager Bombings,” alongside a message of de-escalation from Pezeshkian, particularly towards the US and Israel.

Before traveling to New York, Pezeshkian stated at a press conference that Iran does not want to destabilize the region or export its revolution. He expressed a willingness to engage with the US if it shows it is not hostile, even referring to the US as “brotherly.”

During meetings at the UN General Assembly, he reiterated, “Iran is ready to set aside its weapons if Israel does the same,” according to an audio recording.

Pezeshkian explained that the delay in Iran’s response to Haniyeh’s assassination was due to indications that a ceasefire agreement between Israel and Hamas was imminent, expressing frustration over the lack of progress and ongoing Israeli attacks.

Pezeshkian downplayed Hezbollah’s ability to confront Israel independently, challenging the narrative from officials close to Khamenei.

His remarks, along with concerns about possible security breaches during the “Pager Bombings” and the targeting of Hezbollah leaders, raised suspicions in Tehran about vulnerabilities in Iran’s defense and heightened fears of internal security lapses.

The eighth and most critical phase began with the assassination of Hezbollah Secretary-General Hassan Nasrallah, a key figure in Iran’s regional strategy, second only to Gen. Soleimani.

The Israeli airstrike on Nasrallah’s headquarters also led to a significant loss for the Revolutionary Guards.

Nasrallah is highly regarded among Iran’s leaders, especially conservatives. His name has occasionally been mentioned as a potential successor to Khamenei, but such a candidacy would likely face opposition from various political factions due to his non-Iranian status.

In response to the assassinations of Haniyeh and Nasrallah, Iran launched its second direct missile attack on Israel.

This prompted Israel to threaten retaliation, indicating it could target various facilities, including oil refineries, fuel stations, and nuclear and military sites.

The situation between Israel and Iran remains highly volatile, with the potential for further escalation.

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From Wells to Budget: Where Does Libya’s Oil Money Go?

Tugboat Al-Hani begins operations at Zueitina port (National Oil Corporation)
Tugboat Al-Hani begins operations at Zueitina port (National Oil Corporation)
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From Wells to Budget: Where Does Libya’s Oil Money Go?

Tugboat Al-Hani begins operations at Zueitina port (National Oil Corporation)
Tugboat Al-Hani begins operations at Zueitina port (National Oil Corporation)

Libya depends on oil for nearly 98% of its income. Yet a central question persists: How are those revenues collected and spent in a country divided between rival governments? And why do Libyans complain of poverty when their country holds Africa’s largest oil reserves and produces and exports about 1.4 million barrels a day?

The process starts with the National Oil Corporation, which collects proceeds from crude oil and gas sales in US dollars and deposits them in accounts at the Libyan Foreign Bank. The money is then transferred to the Central Bank of Libya's accounts in Tripoli, recorded as state budget sovereign revenue, and converted into Libyan dinars.

The dollar trades at 6.36 dinars at the official rate, compared with 9.12 on the parallel market.

The Finance Ministry in Tripoli then issues spending authorizations under approved financial arrangements, after which the central bank releases funds to ministries and other state bodies through the main budget chapters.

Libya’s oil export revenues have swung sharply in recent years, ranging between $18 billion and $22 billion. They rose to about $18 billion in the first half of this year, nearly double the level in the same period last year, according to the Economy Ministry in the interim Government of National Unity.

Libyan oil expert Mohamed al-Shahati attributed the increase during that period to the war involving Iran.

Where is the breakdown?

Economists say Libya’s dependence on oil as its near-exclusive source of income lies at the heart of the crisis.

Ayoub al-Farsi, an economics professor at the University of Benghazi, said Libya showed how excessive reliance on natural resources could turn into a complex financial crisis when combined with political fragmentation and a lack of economic diversification.

“The Libyan economy is a clear example of how excessive dependence on natural resources can become a complex financial crisis,” he said, adding that political fragmentation and the absence of diversification had created conditions that directly affected people’s lives.

Al-Farsi, a member of the Central Bank of Libya’s Monetary Policy Committee, said the economy was built around a rentier-state model that depended almost entirely on oil exports to fund the treasury and provide foreign currency.

That dependence, he told Asharq Al-Awsat, had created deep structural distortions.

Agriculture and industry had been marginalized, the state bureaucracy had expanded to absorb workers into unproductive public-sector jobs, and the country had grown heavily dependent on imports for most consumer goods, he said.

Industrial activity remains limited, largely confined to the private sector and small-scale production. Critics also point to a market dominated by a small number of traders and importers, helping imported goods crowd out local production.

At protests across Libyan cities, the question is often the same: Where is the oil money going? Why are people struggling in an energy-producing country?

Al-Shahati said part of the answer lies in the difference between the value of the oil Libya produces and the amount that actually reaches the state treasury.

“Not every barrel produced in Libya is converted directly into a dollar entering the public treasury, because foreign partners have a share,” he told Asharq Al-Awsat.

Foreign companies have become production partners under various contractual arrangements, he said.

He also pointed to a stark contradiction: Libya produces oil, yet depends heavily on imports of gasoline, diesel, and other petroleum products to meet domestic demand.

That means a growing share of the country’s resources is converted into foreign currency to pay for fuel imports.

Al-Shahati said another problem was the lack of a regularly published, unified, and easy-to-read account that answers basic questions, such as: What was the total value of the oil produced? How much went to foreign partners? How much was exported for the state? How much went to the domestic market? And how much net revenue was actually available for public spending?

“The figures in circulation provide parts of the picture,” he said, “but they do not always show the full flow of revenues from the wellhead to the state’s public accounts.”

Libya’s oil fields are concentrated mainly in the eastern Sirte Basin, which holds about 82% of its oil reserves, as well as in the Murzuq Basin in the southwest and offshore areas along the coast.

Fuel and power crises

Those weaknesses in the oil revenue chain are unfolding as Libya grapples with a severe electricity crisis.

The country has suffered several “blackouts” in recent days, with some areas going without electricity for more than 17 hours a day.

Researcher Ezzedine Mokhtar sees the power cuts as one part of a wider pattern of recurring financial failures, including fuel shortages.

He blamed the hardship facing many Libyans on “corruption” and “unlimited spending” by two rival governments competing for power in the country’s east and west.

He also cited “oil smuggling through Arkenu, whose revenues go to specific individuals rather than the state treasury.”

Mokhtar said Libya’s subsidy system was another core problem, with more than 60% of the country’s budget going to fuel subsidies.

He called on the Tripoli government to phase out those subsidies gradually and to draw up a national plan to develop the workforce.

“We have no industrial skills in anything,” he said. “We import everything — yogurt, dairy products, fruit, vegetables, frozen fish, and even underwear. Everything comes from abroad.”

Libya ranks 10th globally in proven oil reserves, with about 48.3 billion barrels, according to Worldometer.

The UN Panel of Experts said in its latest report on Libya, covering October 2024 to February 2026, that Arkenu had moved at least $3 billion in oil revenues to bank accounts outside Libya between January 2024 and November 2025.

According to the report, Arkenu was established in 2023 as a private company and is indirectly controlled by Saddam Haftar, deputy commander-in-chief of the Libyan National Army. It faces accusations of “oil smuggling.”

Reuters previously investigated the company and concluded, based on shipping documents, London Stock Exchange Group data, and information from Kpler, that some oil revenues were being diverted away from the Central Bank of Libya.

How are revenues distributed?

Oil revenues are distributed across the four main chapters of the state budget, according to experts and economists.

Chapter One, salaries and wages, takes the largest share. It covers public-sector employees across eastern, western, and southern Libya through the unified national identification number system.

Chapter Two covers operating expenses for ministries and public institutions.

Chapter Three covers subsidies, including fuel, water, and electricity.

Chapter Four covers development and projects, including infrastructure, as well as allocations to the National Oil Corporation to sustain and increase production.

Al-Shahati said 26% of oil revenues went toward importing fuel products, equivalent to about $7 billion if crude traded at $70 a barrel.

This year, he said, the figure could rise to between $8 billion and $9 billion because oil prices had climbed above $85 a barrel and the gap between crude prices and diesel and gasoline prices had widened amid shortages.

He also pointed to higher domestic consumption driven by economic growth and a rise in smuggling.

A second problem, al-Shahati said, is the absence of an approved national budget, which would make it possible to determine how spending should be allocated among population groups and regions.

“What is clear is that the main cities control most spending,” he said.

He also pointed to “a large and obvious imbalance” in salaries across Libya’s three regions, job grades, and types of employment.

Those gaps, he said, risk widening financial divisions between social groups.

Even an agreement to unify development spending did not appear to be properly implemented because there were no clear standards and no comprehensive budget.

“There are no criteria for distributing oil revenues,” al-Shahati said. “The distribution process is random and unsustainable.”

Libya fell to 177th out of 182 countries in the 2025 Corruption Perceptions Index, from 173rd out of 180 countries in 2024, reflecting worsening corruption and no tangible improvement over the past two years.

Pressure on the local economy

A report by UN Secretary-General Antonio Guterres on Libya highlighted deep structural strains in the economy, driven by high public spending, near-total dependence on oil and gas revenues, and mounting pressure from food, fuel, and electricity prices.

The report, submitted to the UN Security Council on Aug. 17, covers the period from April 1 to July 28.

Citing the International Monetary Fund, it said Libya’s fiscal deficit reached 30% of gross domestic product last year, while public debt climbed to 146% of GDP.

Inflation also rose into double digits, eroding purchasing power.

The UN report noted unjustified increases in fuel consumption by military and security agencies and the energy sector, as well as repeated double purchasing.

The cost of institutional division

Libya’s political and institutional split and the presence of multiple authorities have made the economic crisis worse, al-Farsi said.

The distortions, he said, were no longer merely structural.

They had created parallel public finances and pushed consumer spending higher to meet the demands of rival authorities, sending salaries and subsidies to unprecedented levels.

Repeated shutdowns of oil fields in previous years, combined with lower actual revenues, pushed financial authorities toward deficit financing and higher public debt, al-Farsi said.

That flooded the market with money without a corresponding rise in domestic production.

Oil revenues reached $21.9 billion in 2025, according to the National Oil Corporation, up from $18.6 billion in 2024, an increase of 15%.

Al-Farsi said the deterioration in public finances had left monetary authorities in a difficult position and forced them into emergency measures to protect reserves and contain the deficit.

The result, he said, was a weaker national currency, liquidity shortages and a collapse in confidence.

Development tools had also been paralyzed.

“Monetary policy shifted from an instrument for stimulating growth and investment into a tool for managing daily crises,” he said.

Why has the crisis not been solved?

Economists point to several reasons.

Al-Shahati put “corruption spreading on an unprecedented scale” near the top of the list.

“Corruption is no longer confined to the margins,” he said. “It has come to dominate the core of public finances in key sectors, obstructing any attempt at reform.”

He also blamed the absence of an institutional vision following the breakdown of middle management, which had once linked fiscal and monetary policy to economic realities and provided unified political backing.

Policies, he said, had become detached from the economy and lost their ability to restore balance.

Conventional reforms that had worked elsewhere would not work in Libya, al-Shahati said, because the country lacked a central political authority capable of building an institutional vision and curbing corruption that had spread through both the state and private sector.

Al-Farsi said Libya could not escape its fiscal and monetary crisis without addressing the roots of the problem.

That meant unifying the management of public finances, curbing government spending, and launching genuine structural reforms that would gradually shift Libya from consuming oil rents to building a diversified economy.

Mokhtar also called on the Tripoli government to develop a strategic plan to make better use of human resources and support small and medium-sized industries.

For him, breaking Libya’s dependence on oil revenues is part of the way out.

Masoud Suleiman, chairman of Libya’s National Oil Corporation, said in media remarks last week that the country needed between $30 billion and $40 billion in investment to develop untapped oil and gas resources.

The corporation, he said, aims to raise production to 2 million barrels a day by 2030.

Features

Bandar Abbas, Iran’s Trade Hub on Hormuz Thrust to Frontline of US War

Fishermen check their nets and small boats on the seashore in the port city of Bandar Abbas, in southern Iran on August 10, 2026. (AFP)
Fishermen check their nets and small boats on the seashore in the port city of Bandar Abbas, in southern Iran on August 10, 2026. (AFP)
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Bandar Abbas, Iran’s Trade Hub on Hormuz Thrust to Frontline of US War

Fishermen check their nets and small boats on the seashore in the port city of Bandar Abbas, in southern Iran on August 10, 2026. (AFP)
Fishermen check their nets and small boats on the seashore in the port city of Bandar Abbas, in southern Iran on August 10, 2026. (AFP)

With a long shoreline on the Strait of Hormuz, Iran's southern trade hub of Bandar Abbas has found itself at the frontlines of the war with the United States, with residents struggling to revive livelihoods battered by months of fighting.

Like elsewhere in Iran, economic strain has squeezed households since US-Israeli strikes triggered the Middle East war on February 28. But unlike much of the country, the port city of around half a million people has remained exposed to fighting even after an April 8 ceasefire brought relief elsewhere.

But despite a lull in hostilities in July, residents still feel squeezed. Saeed Tajik, 42, used to work at a shipyard before losing his job and turning to driving a taxi.

"The prices of housing and food have become extremely high. Almost all the basics -- rice, yoghurt, and oil -- have doubled," said Tajik.

Fuel shortages have long been common in southern Iran, where authorities restrict supplies in an effort to curb widespread fuel smuggling.

But now, "the queues have become longer ... it happens that we wait in the long line for fuel only to get told 'there is none' upon arriving," Tajik said as he drove past a station where motorists waited under the punishing summer heat.

Hormuz has emerged as a central flashpoint after an April ceasefire and June framework deal failed to resolve disagreements between Washington and Tehran over the future management of the strait.

During the war, US strikes hit bridges, highways and railway infrastructure around Bandar Abbas until mid-July, in what analysts saw as attempts to cut off the city and disrupt Iranian military logistics in the south.

- 'Nothing left' -

Inside the city, under a towering concrete statue of two armed men with their arms trained towards Hormuz waters, economic strains play out in long queues snaking outside petrol stations and soaring prices squeezing shoppers in local markets.

The city's repeatedly hit airport remained largely closed until August 15, leaving travelers facing arduous road journeys, sometimes combined with flights and boat crossings.

Outside the city, construction crews still toil under the sweltering summer sun to repair the Gachin bridge, split by a US strike, as cars rumble along a dusty detour below.

Along the waterfront, traditional wooden vessels known as lenjes sit moored alongside fishing and commercial boats, part of a centuries-old trading network linking southern Iran with Arab states across the Gulf.

Arash Tondro, 45, used his lenj to carry Iranian fresh and dried fruit to the United Arab Emirates and return with household goods and other imports.

"My income dropped to zero at the beginning of the war," said Tondro, who later rerouted some trade through Oman's Khasab port as regional seaways were disrupted and "many of the lenjes were hit by drones".

After the UAE suspended trade with Iran on Tuesday following a missile attack on a ship that Tehran denied carrying out, Tondro said he was again unsure how his work would be impacted.

"People in the south mostly rely on trade or fishing. If you take the sea and trade away from them, there is practically nothing left. We don't have agriculture here; whatever there is comes from the sea," he said.

- 'No sales' -

As night falls and August's oppressive heat begins to ease, fish vendors set up along a busy street, laying out shark, tuna and shrimp as the smell of the day's catch hangs in the humid air.

Among them is 22-year-old Anoush Mallah, who recently moved onto the street after soaring rents forced him to close his shop in one of the city's bazaars.

"Business has been terrible since the war started. There are no sales, it's very weak," he told AFP.

"People are short of money. The fishermen aren't going fishing either."

Many fishermen around Bandar Abbas only began returning to sea in recent weeks, after months ashore for fear of being caught in the crossfire of US-Iran fighting.

Diplomatic efforts have so far failed to end the war. For Mallah, the uncertainty only adds to the strain.

"Let it (the war) start and get some result; right now, we're just left in limbo," he said.

Features

The Ethiopian Dam Dispute and Egypt’s ‘Right to Self-Defense’

Egyptian Foreign Minister Badr Abdelatty. Photo: Foreign Ministry
Egyptian Foreign Minister Badr Abdelatty. Photo: Foreign Ministry
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The Ethiopian Dam Dispute and Egypt’s ‘Right to Self-Defense’

Egyptian Foreign Minister Badr Abdelatty. Photo: Foreign Ministry
Egyptian Foreign Minister Badr Abdelatty. Photo: Foreign Ministry

Over the past two weeks, Egypt has repeatedly stressed its right to prevent any actions by Addis Ababa on the Nile River that could harm its water interests, stressing that it possesses the “right to self-defense” over Ethiopia’s Grand Ethiopian Renaissance Dam (GERD).

According to experts who spoke to Asharq Al-Awsat, Egypt’s signaling means that it “will not hesitate to use all legitimate means to safeguard its water security.”

They explained that the message is a stern warning to Ethiopia and suggests that Cairo is seeking to shift from a policy of protesting Ethiopian measures to preventive deterrence, aimed at stopping the establishment of a new status quo on the Nile.

New Egyptian Warning

Egyptian Foreign Minister Badr Abdelatty said that “Egypt will not allow the construction of additional dams ... that affect its water interests,” stressing Cairo’s commitment to a legally binding agreement that guarantees its water rights.

In a television interview on Wednesday evening, Abdelatty said that Egypt does not oppose African countries’ right to development, noting Cairo’s participation in dam and infrastructure projects in several Nile Basin states. However, he stressed the need to balance the right to development with the rights of downstream countries.

He also underscored Egypt’s commitment to protecting its water interests. “We have the right to self-defense to protect our interests and water security,” said the minister. “We will not accept any agreement regarding the Nile River unless it is legally binding,” he reiterated.

Mohamed Hegazy, a member of the Egyptian Council for Foreign Affairs and a former assistant foreign minister, says the right of self-defense is protected under international law after all peaceful means have been exhausted.

According to Hegazy, the core message is that Cairo still prefers agreement and negotiation, but it no longer accepts using negotiations to impose a fait accompli.

He argued that the most significant aspect of Abdelatty’s statements is that they send three simultaneous messages - Rejection of unilateral measures, rejection of additional dams, and insistence on the right of self-defense to protect water security.

Hussein El-Behairy, an African affairs expert at the National Center for Middle East Studies, said the minister’s recent statements reaffirm Egypt’s right to defend its historical and water rights in the Nile by whatever means the Egyptian state deems appropriate to preserve what Egyptians view as a matter of life and death.

Ethiopia’s Grand Ethiopian Renaissance Dam (GERD). Reuters

Escalating Egyptian Position

This is the third time Egypt has signaled the possibility of using its “right to self-defense” and preventing dam construction on the Nile.

On August 16, Egypt’s state news agency quoted an unnamed Egyptian official as saying that Cairo “will neither accept nor allow any party to control the flow of Nile waters to downstream countries,” stressing that the Egyptian state possesses multiple tools capable of protecting its people’s interests in the Nile.

The statement came in response to remarks attributed to Ethiopian Minister of Water and Energy Habtamu Itefa concerning the construction of additional dams on the Nile and control over water flows to downstream states, namely Egypt and Sudan.

Earlier, on August 4, Egyptian Minister of Water Resources and Irrigation Hani Sewilam stated during a press conference that Egypt “will not allow the construction of new Ethiopian dams on the Nile River.”

He said: “It is well known that Ethiopia has plans to build additional dams, but will the Egyptian state allow this? No.”

According to Hegazy, the ball is now in Ethiopia’s court. If Addis Ababa agrees to resume serious negotiations leading to a legally binding agreement on GERD, the crisis can be contained.

However, if Ethiopia continues to create new realities on the Nile, the scope for a diplomatic solution will narrow, making risk management and deterrence a more prominent part of Egypt’s strategy.

El-Behairy does not expect the escalation to pave the way for new negotiations on GERD unless the Ethiopian government is willing to make concessions in response to Cairo’s demands. These demands include reaching a legally binding agreement that guarantees Egypt’s water rights during periods of drought and severe drought, and providing Egypt with information regarding the operation of the dam in a manner that does not harm its water interests.