Southeast Asia: The New Terrorist Destination

Government troops waged a four-month battle against ISIS in the city of Marawi, Philippines. (Reuters)
Government troops waged a four-month battle against ISIS in the city of Marawi, Philippines. (Reuters)
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Southeast Asia: The New Terrorist Destination

Government troops waged a four-month battle against ISIS in the city of Marawi, Philippines. (Reuters)
Government troops waged a four-month battle against ISIS in the city of Marawi, Philippines. (Reuters)

It seems that Southeast Asia may be the new destination of terrorists, who have suffered a series of defeats in Iraq and Syria. The leaders of these organizations have indeed started to transfer what remains of their funds and members to several of the region’s countries.

The first question we should ask is whether Southeast Asia is the only option available to ISIS and other extremist groups or are there other destinations that can become the base for their resurgent terror attacks around the world?

Africa definitely remains the second choice to become a base for terror training camps and the recruitment of new ISIS and al-Qaida members. The ground there, however, does not seem ready to receive these terrorists due to various factors that we will not get into.

Southeast Asia however enjoys the geographic and demographic elements that make it an exemplary choice that would compensate these two organizations the losses they have suffered in the Middle East.

Attractive region for terror

An in-depth exploration reveals that there are several factors that make Southeast Asia a suitable environment for future terrorism. The first of these factors is the high population density of the majority of these countries, especially Indonesia that has a population of 260 million. There, ISIS can easily win over thousands of sympathizers and gain new recruits.

The geography there is rife with tens of thousands of small islands that act as fortresses and caches for fugitive terrorists.

This is compounded by a lack of security coordination between Southeast Asian countries, which is in contrast to the coordination between extremist groups there, most notably those in Indonesia, Malaysia and the Philippines.

Furthermore, the poverty in those countries makes it easy for extremists to lure recruits with the promise of financial rewards. Racial and sectarian discrimination suffered by the Muslim youth also make them easy prey for terrorist recruitment and brainwashing.

The Philippines and Hapilon’s death

The clashes between the Philippine military and ISIS in the city of Marawi have drawn attention to the rise of the terrorist threat in Southeast Asia. The Philippine defense minister announced in October that ISIS chief in Southeast Asia and Abou Sayyaf group leader Isnilon Hapilon was killed in the clashes. He was blacklisted by the United States as one of its most wanted terrorists.

The four-month Marawi battle, where ISIS seized four neighborhoods, highlighted fears that the group would seek to establish a regional base south of the archipelago, reported Agence France Presse.

How did ISIS infiltrate Catholic-majority Philippines and not other predominantly Muslim Middle Eastern or Asian countries?

A report by the Stratfor American geopolitical intelligence platform examines how ISIS inspired Hapilon to unite in 2014 the ranks of extremist organizations in the region under the ISIS banner. Stratfor said these organizations as a blend of local criminal gangs operating under the guise of “jihad”. Hapilon and other extremist leaders in the Philippines gained in the meantime recognition by operating under the ISIS name and adopting its tactics.

Perhaps the most interesting aspect of Philippines’ southern Mindanao island is its strategic location on the marine border with Indonesia and Malaysia. This makes it a prime destination for Indonesian and Malaysian extremist fugitives.

The Rohingya crisis and Asian terror

One of the most important questions that is being raised recently is whether the arrival of extremists in Southeast Asia is connected to the suffering Myanmar’s Rohingya Muslims are enduring at the hands of the Buddhist government.

We have definitely detected serious ISIS, Qaida and other extremist attempts to portray the developments in Myanmar as a war against Islam and Muslims. They have all come to agree that Myanmar will become the scene of the major battle, said Jay Solomon of the Washington Institute for Near East policy.

This was demonstrated in a statement released in September by the Qaida higher command that called on all “jihadist brothers in Bangladesh, India, Pakistan and the Philippines to head to Myanmar to aid our Muslim brothers.” It urged them to “make the necessary preparations, including training and the like, to resist this oppression and injustice.”

In a separate statement, Qaida’s Shura council declared that Buddhists had occupied Rakhine state from where Islam was spread to Burma some 200 years ago. Buddhists then changed Burma’s name to Myanmar where its Muslim population was oppressed.

Does this mean that Qaida is more present in Myanmar than ISIS?

In order to properly read the Southeast Asian extremist scene, we must address the security and political developments there and the rise of fundamentalism.

As the Rohingya crisis escalated, Buddhists and their embassies throughout the Middle East and Southeast Asia came under attack. In September, molotov bottles were thrown at the Myanmar embassy in Jakarta, Indonesia. This prompted police in Pakistan to bolster security around Myanmar diplomatic missions in Islamabad.

In Bangladesh, officials said that they have not yet witnessed the arrival of foreign fighters to support the Rohingya, but they have confirmed that the threat is very high.

The above all means that “jihadist” groups have learned how to exploit civil wars and social unrest to spread their roots and raise the number of their recruits.

The crisis has reached such a dire point that a senior Bangladeshi official declared that the situation in Myanmar is a “man-made disaster.”

Qaida returns to the fray

The most disturbing analyses of the developments in Southeast Asia said that the situation has gone beyond ISIS and instead brought al-Qaida back into the picture.

Several security, counter-terrorism and intelligence officials in the region stated that various Qaida branches in the islands surrounding Myanmar had in recent years trained Rohingya on “jihad”.

The Qaida problem here is greater than the Rohingya crisis. It is seeking to regain from ISIS the top spot as the most dangerous extremist group. But why is Southeast Asia such an important strategic target for it?

The area has never been free of pro-Qaida groups and it still retains sleeper cells that can play a very dangerous role should they be ordered to act. In addition, Qaida knows that the United States has a historic military presence in Southeast Asia, which makes their positions strategic targets. Furthermore, observers will notice that Southeast Asia is a main passage for the world’s oil trade, making it another Qaida target.

This prompted the American Foreign Affairs magazine to ask if Qaida will make a return to the scene.

It essentially said that the US was too preoccupied with defeating ISIS to notice that al-Qaida was regrouping. Observers in the report wondered if it will achieve its goal of once again being labeled as the most dangerous terrorist group. Some stated however that the US and other countries were effective in their war against terrorism, giving them reason to believe that al-Qaida was in real and constant decline.

Upcoming terror

It is certain that Southeast Asia may be confronted with a threat that is worse than al-Qaida and ISIS. Foreign Affairs said that the organization is different than what it was a decade ago and Southeast Asia may witness the rise of al-Qaida under a new form, one which brings together ISIS’ orphans who are longing to avenge their humiliating losses in the Middle East.

Their arrival in Southeast Asia is connected to stability and political unrest and extremist radical ideology will never be eliminated as long as social injustice remains and conflicts and wars in Asia, Africa and the Middle East rage on.



72 Hours that Arranged the Succession: Khaddam Recalls What Happened after Hafez al-Assad's Death

Bashar al-Assad during his father’s funeral in June 2000. (AFP)
Bashar al-Assad during his father’s funeral in June 2000. (AFP)
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72 Hours that Arranged the Succession: Khaddam Recalls What Happened after Hafez al-Assad's Death

Bashar al-Assad during his father’s funeral in June 2000. (AFP)
Bashar al-Assad during his father’s funeral in June 2000. (AFP)

Former Syrian Vice President Abdul Halim Khaddam’s recent memoirs tackle the three days that followed the death of the late President Hafez al-Assad on June 10, 2000. He recalled the events from the perspective of someone who was inside the room where the succession was arranged.

The memoirs, edited and introduced by Ibrahim Hamidi, are due to be published in early September by Raff Publishing, a subsidiary of the Saudi Research and Media Group (SRMG).

Khaddam contacted Hafez al-Assad to ask permission to travel to Baniyas, leading to a lengthy conversation about health and age in which Assad said: "I have carried burdens beyond my capacity." He ended the conversation with a request: "Call me when you arrive."

Upon Khaddam's return to Damascus on Saturday, he was informed that the presidential palace was calling for him and that "Dr. Bashar" - Assad’s son - was waiting for him at home, at which point he realized that the president had died.

In the reception hall, he found the members of the Syrian command with Bashar and his brother-in-law Assef Shawkat with discussions focusing on how to announced the death. Minister of Defense General Mustafa Tlass informed him that the Regional Command had made two decisions: nominating Bashar for the presidency and amending Article 83 of the Constitution regarding the age of the President of the Republic since Bashar was 34 years old and the constitution required the minimum age to be 40. The People's Assembly was to meet in the evening to approve the amendment.

The memoirs are due to be published in early September by Raff Publishing, a subsidiary of the Saudi Research and Media Group (SRMG).

On the evening of Hafez’s death itself, Khaddam recalled that he met with Bashar at his home and suggested promoting him to the rank of general and appointing him Commander-in-Chief of the Army and Armed Forces, "so that he would have a legitimate status in the state" before a referendum.

Bashar asked him whether they should consult Tlass, and Khaddam replied that they would inform him of the decision rather than ask him.

The following day, the proposal was presented to Tlass in the presence of Bashar, whereupon the Defense Minister's face turned pale and he fell silent before stating that he would order the drafting of the decree.

Here, the memoirs record the most striking point of contention: the decree was delayed, and when the director of Tlass's office was asked about the reason, he replied that the General wanted to promote Bashar to the rank of "Lieutenant General" rather than "General", a proposal that would have kept the position of Commander-in-Chief of the Army within the reach of the Defense Minister.

Khaddam revealed his conviction was that Tlass "was not fit for this position," and that he had made a decision to support Bashar "to the end, even if it were at the expense of old comrades."

Bashar al-Assad and Abdul Halim Khaddam at the Syrian parliament in 2000. (AFP)

The memoirs reveal that Bashar’s path to the presidency began in 1994 with the death of his brother Bassel. Khaddam recalled that while everyone was in Qardaha for the burial, he learned that Anisa Makhlouf and her brother Mohammad Makhlouf had met and decided to terminate Bashar’s studies in London so that he could take his brother’s place as Hafez’s eventual successor.

Recalling that period, Khaddam said: "We must not forget that the elder Assad built a regime in which he placed Syrians before two choices: either to accept the regime with all its flaws, or civil war."

The issue is not merely a story of military protocol; it reveals the fragility of the moment of transition in a regime built for decades around a single individual, and how the party, constitution, army, and family intervened within a few short hours to produce a succession intended to appear natural. The details of those 72 hours appear in the book's chapter titled "The Death of Hafez al-Assad."


School Starts Soon in Lebanon but Thousands Still Shelter in Them During War

Displaced woman, Randa al-Taki, 51, and her daughter Fatima Haidar, 11, arrange their clothes inside their makeshift room that set on a basketball court inside a public school turned into a shelter for people whose villages in southern Lebanon were destroyed or occupied by Israeli forces, in Tyre, southern Lebanon, Thursday, Aug. 27, 2026. (AP)
Displaced woman, Randa al-Taki, 51, and her daughter Fatima Haidar, 11, arrange their clothes inside their makeshift room that set on a basketball court inside a public school turned into a shelter for people whose villages in southern Lebanon were destroyed or occupied by Israeli forces, in Tyre, southern Lebanon, Thursday, Aug. 27, 2026. (AP)
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School Starts Soon in Lebanon but Thousands Still Shelter in Them During War

Displaced woman, Randa al-Taki, 51, and her daughter Fatima Haidar, 11, arrange their clothes inside their makeshift room that set on a basketball court inside a public school turned into a shelter for people whose villages in southern Lebanon were destroyed or occupied by Israeli forces, in Tyre, southern Lebanon, Thursday, Aug. 27, 2026. (AP)
Displaced woman, Randa al-Taki, 51, and her daughter Fatima Haidar, 11, arrange their clothes inside their makeshift room that set on a basketball court inside a public school turned into a shelter for people whose villages in southern Lebanon were destroyed or occupied by Israeli forces, in Tyre, southern Lebanon, Thursday, Aug. 27, 2026. (AP)

Eleven-year-old Fatima Khashab helps her mother tidy the small area where their family sleeps, in a row of makeshift living quarters in a school gymnasium.

About 200 families are sheltering in the school in Lebanon’s southern coastal city of Tyre. Most are from villages farther south that have been destroyed in the latest war between Israel and the Iran-backed Lebanese group Hezbollah or are occupied by Israeli forces, like Fatima’s hometown of Mansouri.

The school year will start on Sept. 15, but thousands of displaced people still shelter in public schools. With negotiations between Israel and Lebanon — and between the US and Iran — stalled, there is no political solution in sight that would allow them to go home.

Education officials say they have a plan to reopen the schools while maintaining shelters for families with nowhere to go. But anxiety is high.

“We don’t know if we will be able to go back to our village or if the crisis will get even worse. Nobody except for God knows what’s going to happen," said Fatima’s mother, Randa al-Taki, 51.

On top of that, she said, “Our children are deprived of school, and we don’t know if they are going to learn this year or not.”

Education is again disrupted for children in Lebanon

Lebanon has traditionally prided itself on its education system. Its economy relies on sending educated young people abroad to work. They send remittances and make investments back home.

That system is in danger of crumbling.

Since 2019, Lebanon has been battered by an economic collapse, the COVID-19 pandemic, the 2020 Beirut port explosion and two wars. The current conflict has disrupted education for hundreds of thousands of children.

“There’s an estimated at least four years of learning loss now,” said Nora Ingdal, Lebanon country director for Save the Children, which has set up learning spaces for displaced children. “A sixth grader is actually on the level of a second grader.”

At the height of the current conflict, half of Lebanon’s public schools were used as shelters, disrupting education for more than 250,000 students, according to a report by the Arab Center for Research and Policy Studies, a Qatar-based think tank.

Nasser Yassin, the center’s director in Beirut and a former Lebanese government minister who was in charge of the crisis response during the 2024 war, said the government should have used other places for shelters whenever possible, not schools.

“We should not respond to a displacement crisis by creating a long-term education crisis,” he said.

About 350,000 people remain displaced

The latest conflict between Israel and Hezbollah began on March 2, when the group fired rockets across the border two days after Israel and the US launched a war on Iran.

At the height of the war, some 1.2 million people were displaced in Lebanon.

Since late June, a shaky truce has allowed most to return home. In Beirut, the displacement crisis is no longer visible the way it was early in the war, when tents lined the seaside corniche and families slept in their cars along main thoroughfares.

But the Israeli military still occupies large swaths of southern Lebanon and has said it won't withdraw before Hezbollah is fully disarmed, a prospect that appears unlikely. Israeli troops have demolished houses in areas they control and launched strikes that they say target Hezbollah militants.

“Every day we see how they are demolishing our village with bulldozers, and they’re either blowing up the houses or bombing them in front of our eyes, and we can’t do anything,” al-Taki said of Israel's military. She is unsure if their house is still standing. Lebanon's state news agency reported new airstrikes and shelling on their hometown over the weekend.

Around 350,000 people remain displaced, according to the UN humanitarian office. While most have rented apartments or moved in with relatives, some 21,000 still stay in collective shelters.

Some have been displaced since the previous Israel-Hezbollah conflict, which erupted into full-scale war in September 2024.

That’s the case for Malak Abu Sari, 11, whose home was destroyed. Her family is staying in the school in Tyre.

Fatima's family was displaced in 2024, too, but they were able to return home before fleeing in March, early in the current war, and again about a month ago after briefly going back.

‘We feel that we’re suffocating’

At the school, Fatima's family is surrounded by relatives and former neighbors. The familiar faces make them feel less alone. Humanitarian groups organize activities for the children. One woman brought her cockatiel when she fled, and children stop by to play with him.

But the families chafe at the lack of privacy.

“We have a place to stay in the school, and thank God for that, but to be honest, we feel that we’re suffocating between these tarps,” al-Taki said.

Before the war, the family made a living farming zaatar, a herb used in a popular Levantine spice mix. Her husband sold snacks from a tuk-tuk on beaches. Now they've missed the zaatar season, and there’s no work.

Fatima pines for her old life. She misses being in her own bed and not in a cramped room with tarps for walls.

“I miss a lot of things,” she said. “I want to go back to school and stay in our own house.”

Online learning poses a challenge

Georgia Hachem, adviser to Lebanon’s education minister, said around 80 schools are still serving as shelters, but many host a small number of families.

In some cases, those schools will reopen for classes while part of the facility continues as a shelter. In other cases, families will be consolidated in a single location. In Beirut, the ministry will move displaced families to unused buildings.

“We have a solution for every single shelter, and no student will be left without a seat,” Hachem said.

The bigger issue, she said, is the 340 schools damaged in the war, with some 30 of them destroyed and no funds to repair them. Other schools are inaccessible in occupied areas.

After the war began, the education ministry offered online classes to students whose schools closed, but families in shelters often have internet problems and limited resources, Ingdal said.

“Maybe there’s one device in the family and you have five kids who are going to learn,” she said.

Most students can return to school in person this year, Hachem said, but a handful of schools will remain online.


Investors Prosper and Consumers Pay as the Iran War Exacts an Uneven Economic Toll 6 Months in

People walk near an anti-US mural in Tehran, Iran, July 15, 2026. Majid Asgaripour/WANA (West Asia News Agency) via Reuters
People walk near an anti-US mural in Tehran, Iran, July 15, 2026. Majid Asgaripour/WANA (West Asia News Agency) via Reuters
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Investors Prosper and Consumers Pay as the Iran War Exacts an Uneven Economic Toll 6 Months in

People walk near an anti-US mural in Tehran, Iran, July 15, 2026. Majid Asgaripour/WANA (West Asia News Agency) via Reuters
People walk near an anti-US mural in Tehran, Iran, July 15, 2026. Majid Asgaripour/WANA (West Asia News Agency) via Reuters

As the US and Israel relentlessly bombed Iran in the opening days of war, the most dramatic predictions of the conflict’s toll were unsparing: surging oil prices, worldwide recession and economic catastrophe.

But six months into the conflict, the direst predictions haven’t come true even if no corner of the world's economy has been untouched.

“So far, the global economy has pulled off the financial equivalent of a ‘Mission Impossible’ scene,” said Michael Ashley Schulman, an investment strategist with Cerity Partners.

Here's a look at how the global economy has weathered the war, and who have been the winners and losers:

Winner: Investors who didn’t panic

Stock markets hate uncertainty, and the decision by the US and Israel to attack Iran on Feb. 28 delivered heaps of it. Columns of smoke rose from Tehran, frantic Iranians clogged roadways trying to escape, and mounting deaths, including of children, made headlines. It was enough for any investor to feel squeamish.

Oil prices surged and Wall Street began a retreat that would begin five consecutive losing weeks. The Dow and Nasdaq entered corrections. The S&P 500 had its worst month since 2022.

But a major turnaround has unfolded since the market bottomed in late March. The Dow has gained nearly 19%, the S&P is up almost 22% and the Nasdaq has surged 27%. If those gains survive the waning months of 2026, all three indexes would post their fourth consecutive year of gains.

The International Monetary Fund, in a July report, said the economy was “being shaped by two major forces, pushing in opposite directions.” The war has strained growth, but enthusiasm over artificial intelligence has offset the drag.

Main Street may be paying more for fuel, food and travel. But Wall Street, so far, is shrugging it off.

Loser: Anyone on the move

The war's most obvious economic consequence has been its impact on oil. With tanker movement through the Strait of Hormuz slowed to a crawl, the price of Brent crude climbed from a prewar close of about $72 a barrel to as high as nearly $120. Although prices have eased, they are still up about 20% from before the war.

Oil's price affects everything from crayons to cosmetics, but it hits anyone on the move especially hard.

Jet fuel is expected to cost, on average, 70% more than in 2025, according to the International Air Transport Association. Airlines, in turn, have raised ticket costs, hiked baggage fees and slapped on fuel surcharges while slashing flights or backing off from plans for added routes. Lufthansa Group, for one, cut 20,000 short-haul flights. Spirit Airlines, though troubled for years, evaporated.

“The likelihood that fuel surcharges are going to be rolled back and airfares are going to be brought down is very low over the next few months,” said Brett House, a Columbia University economist. “There is less choice for consumers and less competition between airlines, and therefore, less pressure to rein in fare increases.”

A plume of smoke rises after a strike on the Iranian capital Tehran, on March 3, 2026. (AFP)

Winner: The case for clean power

With tankers at a standstill and fuel prices climbing, the war strengthened a clean-power sales pitch.

Sales of electric vehicles hit records in some parts of the world. In Singapore, year-over-year growth of EVs reached 110%. In New Zealand, the figure hit 180%. And in Colombia, EVs notched a 300% increase.

Worldwide, EVs are projected to account for 29% of total vehicle sales in 2026, according to an International Energy Agency outlook, up from 25% last year. That growth is even more impressive considering the world’s two biggest economies, the United States and China, saw declining demand for EVs.

Countries that were particularly reliant on Gulf oil have been spurred to action. In Southeast Asia, leaders have rolled out more use of renewable energy and researched deploying nuclear power. In Africa, countries have looked to expand domestic refining and accelerated the installation of solar panels.

Scott Lehmann, a supply chain expert at Sphera, an operational intelligence firm, counts 26 countries and regions that have announced clean energy and electrification measures in response to the war.

“The crisis is forcing investment faster than any policy framework would have,” he said.

Loser: The fight against hunger

For the privileged, the costs brought by war may barely be a blip. For the poorest, it's a different story.

With the Gulf not just a leader in global oil production, but also of fertilizer, the war has dealt a blow to farmers. Just as many were making decisions about their crops, fertilizer prices soared, peaking in April at 44% higher than before the war, according to the World Bank’s price index.

In response, some farmers trimmed their fertilizer use, potentially imperiling next year’s harvests. “If you’re reducing your fertilizer usage right now, it’s in a way borrowing against next year’s soil health,” said Arif Gasilov, a natural resources expert with the Gasilov Group consultancy.

The United Nations World Food Program has warned that tens of millions could be pushed into hunger. In testimony this week, its acting executive director, Carl Skau, said the “suffocation of fertilizer exports” had hit Asia and Africa hard. Higher transportation costs hindered the WFP’s own humanitarian efforts, too.

“An oil tanker anchored in the Strait of Hormuz can mean one less meal a day for a child in Sudan,” Skau said. “When oil prices go up, so does the price of flour, rice and vegetables.”

A drone view shows vessels near the Strait of Hormuz, as seen from Musandam, Oman, August 28, 2026. (Reuters)

Winner: The Trumps’ businesses

The war has already cost the US tens of billions of dollars and caused thousands in Iranian casualties. It has shaved an estimated hundreds of billions of dollars from projected global output.

But the family of the man at the center of it all, President Donald Trump, has been among the beneficiaries.

Military contractor Powerus, about to be taken public by Eric and Donald Trump Jr., won an Air Force contract worth as much as $90 million to supply interceptors to shoot down Iranian drones.

Similarly, the private equity firm 1789 Capital Management, which Don Jr. joined days after his father’s reelection, owns stakes in several other military contractors profiting from the war. One of them, Anduril, won US approval for up to $2 billion in sales of drone interceptors. A second, Elon Musk’s SpaceX, is providing satellite service to guide US drones against Iran. And a third — rocket maker Firehawk Defense — won Pentagon contracts for propellants and warheads to replenish dwindling US supplies.

A spokeswoman for 1789 Capital, Alexa Henning, said Don Jr. wasn't involved in the decision to put money in those companies, so there is no “nefarious connection.”

The president himself has done well, too.

His investment portfolio run by outside managers has scooped up shares of US military suppliers helped by the war, including Lockheed Martin, General Dynamics and Northrop Grumman. Democrats released a report this week saying Trump’s holdings in oil and gas stocks have soared by as much as $15.5 million.

A White House spokeswoman, Anna Kelly, insisted “there are no conflicts of interest” and that “President Trump only acts in the best interests of the American public.”

Even as Trump's personal finances have benefited, his political fortunes are another question. The conflict has been unpopular and could weigh on voters as midterm elections near.