Normalization of Ties with Damascus and Caesar Act

A truck crosses the Syria-Jordan border after it was reopened on Wednesday (Reuters)
A truck crosses the Syria-Jordan border after it was reopened on Wednesday (Reuters)
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Normalization of Ties with Damascus and Caesar Act

A truck crosses the Syria-Jordan border after it was reopened on Wednesday (Reuters)
A truck crosses the Syria-Jordan border after it was reopened on Wednesday (Reuters)

The train of normalization of ties bound for Damascus has departed. Still, the dispute remains over how fast it should go, the stops it should make, and the challenges and reforms needed for its railway to reach the Syrian capital.

A few have boarded the train openly, others secretly, while some have booked a ticket and set conditions for them to make the trip. However, many are waiting for the test results, monitoring the regime’s behavior while betting on sanctions and isolation taking effect.

In late 2018, Damascus received the first dose of Arab normalization of ties with the UAE, Bahrain, and other Arab countries, reopening their embassies. They joined a host of other nations like Egypt, Jordan, Oman, Iraq, and Algeria. These countries did not shut down their embassies in Syria, even after the Arab League had suspended Damascus’ membership in 2011.

The Czech Republic was the only European country that kept its ambassador in Damascus to represent both itself and US interests.

Since the spring of 2012, Western countries have either altogether boycotted Damascus and shut down their embassies or resorted to transferring their ambassadors to Beirut for “security reasons” and allowing them to make periodic visits to Syria.

The same applies to Syria’s embassies abroad, most of which have been closed, except for some capitals, which either maintain a good political relationship with Damascus (such as Bucharest) or have international institutions that require the presence of a representative for the Syrian government, such as Vienna, Geneva, Paris, and New York.

The second dose of normalization took place this year, as European countries expanded their contacts with Damascus.

Some countries, such as Cyprus, Greece, and Spain, have extended the stay of their diplomats in Syria or have begun to dust off diplomatic headquarters in Damascus.

More so, Athens agreed to the presence of Syrian diplomats for the first time in years, and Ankara decided to replace diplomats at the Syrian consulate in Istanbul.

Security-wise, most of these countries were establishing or resuming intelligence contacts with Damascus.

Ali Mamlouk, the head of the National Security Bureau, had visited European capitals, including Rome, and stopped by Arab countries either overtly or covertly.

Mamlouk received several western intelligence officials from major European countries and envoys from the previous US administration to investigate the file of the missing US journalist, Austin Tice.

What’s New in Terms of Normalization of Ties?

Today, Damascus is taking its booster shot regarding the normalization of ties with officials taking the relationship beyond its security and diplomatic scope to the open political level. This can be witnessed at ministerial meetings with government delegates in New York when dealing with the Syrian opposition’s delegation is waning.

It can also be noticed through direct contact with President Bashar al-Assad in Damascus.

Previously, several countries avoided political contacts or direct communication with Assad in public.

Some countries even avoided changing their ambassador or appointing a charge d’affaires in Damascus in order not to give the Syrian president any credibility.

Nevertheless, matters appear to have changed now.

Without surprise, Iran and Russia, key regime backers in Syria, sent officials to Damascus to meet with Assad.

Chinese Foreign Minister Wang Yi’s public visit to Damascus, the first in a decade, took place on July 17, the same day Assad was sworn in as president once again. The top Chinese diplomat’s visit symbolically acknowledged the validity of Syrian presidential elections that were otherwise slammed by the West and the local opposition.

As far as communication with Assad goes, Abu Dhabi Crown Prince Sheikh Mohamed bin Zayed phoned the Syrian president concerning “humanitarian” support in the face of the “coronavirus pandemic” in early 2020.

Later, Iraqi President Barham Salih called Assad to explain why he was not invited to a recent summit in Baghdad.

However, what attracted attention was Jordanian King Abdullah II’s phone conversation with Assad a few days ago. The call had different dimensions.

Firstly, it came after the Jordanian monarch had met with US President Joe Biden and Russian President Vladimir Putin in July and August.

Amman revealed that the monarch reaffirmed “Jordan’s support for efforts to preserve Syria’s sovereignty, stability, territorial integrity, and people.”

Secondly, the call comes after King Abdullah telling CNN that the “Syrian regime was there to stay.”

Thirdly, Jordan has hosted the operations room led by the US Central Intelligence Agency (CIA) to train thousands of Syrian opposition fighters against Damascus since 2013.

Fourthly, the call comes after Russia and Jordan succeeded in pushing Syrian opposition fighters in Daraa to surrender and hand over their arms, helping Assad’s government to fully return to the war-torn country’s south.

Fifth, it follows Amman hosting several Syrian ministers, including Defense Minister Ali Ayoub, to review the situation at borders between Jordan and Syria.

Sixth, the call ensues Amman getting the green light from the US to run natural gas pipelines and electricity networks from Egypt to Syria without facing sanctions.

What’s the Difference Between Normalization and Sanctions?

Washington had sanctioned more than 600 Syrian individuals and entities as of mid-2020, when the Caesar Syria Civilian Protection Act went into effect. Meanwhile, European countries sanctioned 350 individuals and entities.

The UK, after exiting the EU, issued its own sanctions list.

According to the Caesar Act, there are seven official stipulations to lift sanctions off Damascus and six political conditions to normalize ties with the Syrian capital. Four of the conditions for normalization date back to before the events of 2011.

Legally, any change to the Caesar Act requires Congress voting. But the US president has the right to suspend all or part of the sanctions for renewable periods not exceeding 180 days, if specific criteria are met:

i. The Syrian and Russian governments cease using Syrian airspace to target civilian populations
ii. Areas of Syria not under government control are no longer cut off from international aid and have regular access to humanitarian assistance, freedom of travel, and medical care
iii. The Syrian government release all political prisoners and allow access to detention facilities
iv. The Syrian government and its allies cease the deliberate targeting of medical facilities, schools, residential areas, and other civilian targets
v. The Syrian government take steps to fulfill its obligations under the Chemical Weapons Convention and the Treaty on the Nonproliferation of Nuclear Weapons, and make “tangible progress” toward becoming a signatory to the Convention Prohibiting Biological and Toxin Weapons
vi. The Syrian government permit the safe, voluntary, and dignified return of Syrians displaced by the conflict
vii. The Syrian government takes “verifiable steps” to establish meaningful accountability for perpetrators of war crimes in Syria and justice for victims of war crimes committed by the Assad government.

What is clear is that “normalization doses” are clashing with the “Ceasar Act virus,” which first demands a strategic change in Syria and a vote in Congress. This explains the cautious steps the Biden administration is taking towards Assad and his government, as well as the public criticism leveled by US officials and legislators against the actions taken by Amman towards Damascus.



Nothing Left: Nepal Flood Survivors Face Loss and Uncertainty

An aerial view shows houses standing amid debris during a helicopter flight from Nuwakot to Rasuwa following the deadly flash floods and mudslides in Nepal, September 3, 2026. (Reuters)
An aerial view shows houses standing amid debris during a helicopter flight from Nuwakot to Rasuwa following the deadly flash floods and mudslides in Nepal, September 3, 2026. (Reuters)
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Nothing Left: Nepal Flood Survivors Face Loss and Uncertainty

An aerial view shows houses standing amid debris during a helicopter flight from Nuwakot to Rasuwa following the deadly flash floods and mudslides in Nepal, September 3, 2026. (Reuters)
An aerial view shows houses standing amid debris during a helicopter flight from Nuwakot to Rasuwa following the deadly flash floods and mudslides in Nepal, September 3, 2026. (Reuters)

In Nepal's flood-ravaged Rasuwa district, Yangee Tamang grapples with grief and uncertainty, days after deadly torrents swept away entire villages, leaving a landscape of mud, rock and debris.

From a helicopter flying up the valley of destruction, the ground below resembles a puzzle with missing pieces. Entire sections of settlements have vanished.

Picturesque villages of green paddy fields and houses sit beside vast chunks of land washed away.

Tamang's house sits on a hillside in Syabrubesi in Rasuwa district, but the flood swept away the settlement below, where her relatives lived and markets were.

"It is all gone, nothing is left. No one is left," Tamang told AFP, after tracing the route of the August 26 destruction by air on Thursday, with roads below washed out.

Rescue teams in Nepal have recovered more than 1,250 bodies, and more than 5,000 are missing, after the gigantic wave triggered by a rock and ice avalanche roared down the China-Nepal border.

What were once busy villages, markets, green hillsides and winding roads in Rasuwa have been transformed into vast stretches of mud, broken rock and debris.

"It wasn't really water, it was gas-like, all black and it moved like boiling water," she said.

"It was all so sudden, it was not possible for anyone to run away."

- 'Hope has died' -

About 100 people are feared trapped in hydropower tunnels.

Tamang's husband is safe, but his workplace, the nearby Chilime Hydropower Project, which was smashed by the flood.

"I don't know what we will do. Nothing is left here for us to live," she said.

The river, still flowing brown, traces a path of destruction, and the enormous amount of debris has changed the shape and course of the waterways.

The floodwaters, carrying huge quantities of mud and rocks, rushed through river valleys with tremendous force.

In narrow gorges between the lush green hills, soil lies exposed where the flood stripped away trees and grass.

Roads that once connected remote communities have been washed away, while bridges lie destroyed or have completely disappeared.

Vehicles remain stranded on washed-out roads along hillsides.

Along the route, many surviving buildings are buried beneath thick layers of mud.

Some remain standing but are left empty, the people gone.

Risang Tamang, another resident, said for those left, the future is bleak.

"It is difficult -- roads are is such a state, so many bridges have been swept away. Now, even if you have money, there is nowhere to buy anything," he told AFP.

"Any hope that we can live here has died."


Ali al-Taher Ridge Emerges as Flashpoint in Israel-Hezbollah War

A photograph taken from the southern Lebanese area of Nabatieh shows smoke as it rises from the site of Israeli strikes that targeted the hilltops of the mountainous area of the strategic Ali al-Taher Ridge on August 14, 2026.  (Photo by AFP) /
A photograph taken from the southern Lebanese area of Nabatieh shows smoke as it rises from the site of Israeli strikes that targeted the hilltops of the mountainous area of the strategic Ali al-Taher Ridge on August 14, 2026. (Photo by AFP) /
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Ali al-Taher Ridge Emerges as Flashpoint in Israel-Hezbollah War

A photograph taken from the southern Lebanese area of Nabatieh shows smoke as it rises from the site of Israeli strikes that targeted the hilltops of the mountainous area of the strategic Ali al-Taher Ridge on August 14, 2026.  (Photo by AFP) /
A photograph taken from the southern Lebanese area of Nabatieh shows smoke as it rises from the site of Israeli strikes that targeted the hilltops of the mountainous area of the strategic Ali al-Taher Ridge on August 14, 2026. (Photo by AFP) /

The Ali al-Taher ridge in southern Lebanon, which is named after a Shi'ite Muslim scholar whose shrine sits at its summit, has become one of the most contested pieces of ground in the Israel-Hezbollah war.

The cluster of hills is not especially large. But what it overlooks in southern Lebanon — and what Hezbollah is suspected to have built beneath it — thrust it to the center of the fight between Israel and the Iran-backed militant group.

WHERE IS IT?

Located about 15 km (10 miles) from the Israeli border, the Ali al-Taher ridge has a commanding view of a broad sweep of southeastern Lebanon. Israel held it during a 22-year occupation of south Lebanon that ended in 2000.

After the current war erupted on March 2, Israeli troops pushed deep into southern Lebanon and seized key hilltops, including the historic Beaufort Castle on the ‌route to Ali al-Taher.

In ‌June, Israel's military described the ridge as one of its "primary operational focuses," ‌and ⁠included it in ⁠a map of an expanded, self-declared buffer zone where its troops are operating.

The ridge has effectively become a dividing point between a swathe of Lebanese territory occupied by Israeli troops to the south, and towns to the north that Israel's air force has bombed heavily, including Nabatieh.

WHY IS IT STRATEGIC?

Hezbollah is believed to have built an underground command center and weapons stores within the ridge itself, Lebanese security sources told Reuters in July. At 600 meters above sea level, it granted Hezbollah an advantage in launching short-range missiles and drones towards northern Israel, according to analysts.

Ali al-Taher also connects border areas ⁠in southern Lebanon to the hilly Iqlim al-Tuffah region further north, which has long ‌served as a key logistical and operational base for Hezbollah, the ‌Lebanese security sources said.

The Israeli air force has struck the ridge heavily in recent months.

In June, an Israeli military official, ‌speaking on the condition of anonymity, told Reuters that Hezbollah fighters were stuck underground without food or water. The ‌Times of Israel, citing a military probe, said on June 20 that one Israeli soldier was killed and 13 wounded during operations to capture a major underground Hezbollah facility beneath the ridge.

Hezbollah has said that Israel has sought to advance but that its fighters still had "full control over the area and are at complete readiness to confront any attempt by the enemy forces to ‌advance or infiltrate."

In July, the Israeli military said it would "not allow Hezbollah terrorists to emerge from the underground terrorist infrastructure and operate in the area or pose ⁠a threat" to Israeli soldiers.

WHAT ⁠IS THE POLITICAL SIGNIFICANCE?

Ali al-Taher lies near Zawtar Al Gharbiyeh, a town from which Israeli troops withdrew in July as part of a US-brokered roadmap that would see Israeli troops gradually withdraw from southern Lebanon as Lebanese troops disarm Hezbollah.

But with Hezbollah refusing to give up its weapons — and Israel saying it won't withdraw until the group disarms — that plan has ground to a halt.

As Israeli elections planned for October draw closer, capturing Ali al-Taher could be an attractive prize for Israeli Prime Minister Benjamin Netanyahu's government.

"Before the elections, Israel needs a big win in an area that has always been seen as a Hezbollah stronghold," said Andrea Tenenti, a strategic communications expert and former spokesperson for the UN force in Lebanon, UNIFIL.

Still, it may prefer a slow siege to avoid Israeli troop casualties, said Hassan Jouni, a Lebanese analyst and retired army general.

"Israel is hesitant to storm Ali al-Taher for fear of casualties, especially at this sensitive moment before elections," Jouni told Reuters.

The deadlock in Lebanon mirrors the wider Middle East standoff — negotiations between the United States and Iran remain stalled, with no breakthrough in sight.


Not Just Nvidia: These Power and Cooling Firms Are Riding the Trillion-Dollar Data Center Boom

An aerial view of an Amazon Web Services IAD10 data center on August 26, 2026 in Sterling, Virginia. (Getty Images/AFP)
An aerial view of an Amazon Web Services IAD10 data center on August 26, 2026 in Sterling, Virginia. (Getty Images/AFP)
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Not Just Nvidia: These Power and Cooling Firms Are Riding the Trillion-Dollar Data Center Boom

An aerial view of an Amazon Web Services IAD10 data center on August 26, 2026 in Sterling, Virginia. (Getty Images/AFP)
An aerial view of an Amazon Web Services IAD10 data center on August 26, 2026 in Sterling, Virginia. (Getty Images/AFP)

While Nvidia is synonymous with the AI boom, a lesser-known group of power and cooling equipment suppliers is cashing in on a global data center construction spree as developers race to avoid infrastructure bottlenecks.

Energy-hungry data centers have triggered a surge in demand for equipment ranging from transformers to advanced cooling systems, creating winners across Asia's supply chain, though earlier stock-price gains have moderated.

McKinsey forecasts nearly $7 trillion in data-center investment globally by 2030; Nvidia last week said it expects AI spending to remain robust for years.

But building data centers fast enough to meet demand is becoming more difficult. Hyperscalers often want facilities delivered within six months, but grid connection delays can stretch as long as 24 months in some emerging markets and more than eight years in major developed markets, according to consultancy Pivotale AI.

"Outside the industry circle, people are talking about (graphics processing units), but within the circle, people most certainly question you about the lead time for generators and transformers," said Wing Kin Cheung, the CEO of digital infrastructure service provider BodaData.

Transformers convert high-voltage electricity from grids into levels suitable for servers, cooling systems and power distribution units.

AI SCRUTINY DEEPENS

Leading transformer suppliers including ‌South Korea's HD Hyundai Electric ‌and China's Hainan Jinpan Smart Technology reported surging demand in the first half of 2026 tied to AI ‌infrastructure projects, ⁠particularly in North America.

HD ⁠Hyundai Electric recently said demand in Europe was rising as US hyperscalers expanded investments in markets like Finland, Germany and Britain, while Middle Eastern demand remained strong.

Its order backlog rose 23% to $8.5 billion at the end of June from six months earlier, and it said it expects data center demand to remain robust.

"We currently have an order backlog covering more than three years, with a substantial portion of production capacity for major power equipment secured for the coming three years," the company told Reuters.

"We are also in order discussions with some key customers for volumes scheduled for delivery as far out as 2030."

For Jinpan, new data-center orders in the first half more than quadrupled from a year earlier, while its related backlog nearly tripled.

As AI chips consume more electricity, equipment makers are also betting on technologies aimed at improving efficiency and reducing ⁠environmental impacts, amid growing public scrutiny over data centers' consumption of water and electricity.

Bank of America estimates power ‌consumption per AI rack could climb to more than 1.5 megawatts by the end of 2030, nearly 100 ‌times that of a conventional rack, citing Nvidia's roadmap.

One technology attracting greater attention is the solid-state transformer (SST), a device that replaces bulky magnetic coils and copper windings with semiconductors ‌to transform and route electricity.

UBS estimates SSTs will increase power efficiency by around 4% and reduce costs. While commercial adoption remains in its early stages, the ‌bank expects their penetration to climb to 40% in 2030 and forecasts that Chinese companies will gain share thanks to technological expertise and cost advantages.

HD Hyundai Electric and Jinpan said they are deepening SST development, while Taiwan's Delta Electronics, a major supplier of power infrastructure, said a small data center is using its SSTs.

Delta told Reuters that demand for AI power, cooling and data center infrastructure solutions remains a growth engine and it is expanding its production footprint across Thailand, the US and China to meet increased demand.

COOLING RACE

Cooling ‌systems are emerging as another growth area as operators struggle to manage the heat generated by powerful AI chips.

"Power and cooling basically go hand in hand; so basically the more power you use, the more cooling you ⁠need to use because you generate heat," ⁠said Matty Zhao, Bank of America's Asia-Pacific head of research for basic materials, oil and gas.

The bank forecasts liquid cooling will account for 70% of new AI data-center installations versus air cooling by 2030, up from about 30% today. Liquid cooling can reduce energy consumption by over 27%, McKinsey says.

Developers are also exploring unconventional approaches, including floating facilities, underwater data centers and servers in caves or tunnels.

That is creating opportunities for a broader range of suppliers.

"With the expansion of data center self-generation and the floating data center market, opportunities are also opening up to enter new markets for marine medium-speed engines," HD Hyundai Electric said.

Strong demand for thermal-management products is lifting Delta and local peers Asia Vital Components and Auras Technology, as well as China's Shenzhen Envicool Technology. All are suppliers in Nvidia's ecosystem.

SUPPLY CHAIN CONSTRAINTS

Despite surging orders, the stock-price gains of suppliers have moderated as investors question elevated valuations amid intensifying competition.

Delta's shares are up more than 90% this year, while HD Hyundai Electric has stayed largely flat, cooling from gains of more than 100% last year. China's Jinpan and Envicool have fallen nearly 30% and 20%, respectively, after surging 118% and 244% in 2025.

"Even if revenue increases, I think gross margin will probably remain at roughly this level," Delta Chairman Ping Cheng said in July.

"There are many variables in the market, including new product platforms, deployment delays and component shortages. These issues may become somewhat more serious in the second half of this year."

Bank of America's Zhao said investors should be aware of potential risks.

"Not everyone can win," she said. "You have to be cherry-picked for the leaders who actually get the customers."