In West Bank, Israeli Army Operation Batters War-Depleted Economy

Israeli army vehicles drive along a damaged road near the main entrance to Jenin refugee camp during an ongoing Israeli military operation in the West Bank city of Jenin, 05 February 2025. (EPA)
Israeli army vehicles drive along a damaged road near the main entrance to Jenin refugee camp during an ongoing Israeli military operation in the West Bank city of Jenin, 05 February 2025. (EPA)
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In West Bank, Israeli Army Operation Batters War-Depleted Economy

Israeli army vehicles drive along a damaged road near the main entrance to Jenin refugee camp during an ongoing Israeli military operation in the West Bank city of Jenin, 05 February 2025. (EPA)
Israeli army vehicles drive along a damaged road near the main entrance to Jenin refugee camp during an ongoing Israeli military operation in the West Bank city of Jenin, 05 February 2025. (EPA)

When a ceasefire began in Gaza last month, Palestinian activist Ahmad Kilani hoped the pause in fighting would also bring a return to peace in his hometown of Yabad in the occupied West Bank.

But his joy turned to fear when, just two days later on Jan. 21, large columns of Israeli army vehicles backed by helicopters and drones stormed the nearby Jenin refugee camp at the start of a major crackdown in the West Bank.

Israel has since blown up some 20 buildings in the camp, sending plumes of heavy smoke over the densely populated area, and carried out air strikes.

It says it is targeting armed groups that receive support from Iran, including Hamas and Islamic Jihad.

The United Nations' Palestinian relief agency (UNRWA) has said that almost all of Jenin camp's 20,000 residents have been displaced over the past two months.

UNRWA said the area "has been rendered a ghost town" in a statement carried by Reuters.

The Israeli military set up roadblocks and checkpoints across the kidney-shaped stretch of land about 100 km (62 miles) long, and dozens of people were killed or injured in fighting.

"After the ceasefire in Gaza, the war here expanded," Kilani, a member of the Committee for Humanitarian Work in Palestine, an aid group active in the West Bank and Gaza, told the Thomson Reuters Foundation.

"We saw destruction that we did not anticipate seeing. Even though we heard about it, we did not expect it to happen so quickly and in this way."

Since that incursion, hundreds of Israeli troops backed by helicopters, drones and armored vehicles have been waging sporadic gun battles with Palestinian fighters while carrying out searches in streets and alleyways for weapons and equipment.

At least 25 Palestinians have been killed, including nine members of armed groups, a 73-year-old man and a 2-year-old girl, according to Palestinian officials. The Israeli military says it has killed at least 35 gunmen and detained more than 100 wanted people.

Israeli roadblocks have made travelling even short distances between towns and villages into an hours-long trial for Palestinians.

"Nothing can describe the situation we are living in, and every day is worse than the day before. If we discuss something now, it would be worse in a couple of hours," Kilani said.

Relatively well-off friends who once raced to dish out alms and aid are now themselves on the lookout for charity, he said. People have locked themselves indoors to avoid the incessant security operations and Israeli checkpoints, he added.

"Sometimes I scream at myself - what are we headed towards?"

ECONOMIC FREE FALL

The war in Gaza - where more than 47,000 people have been killed and almost the entire population of 2.3 million displaced in a landscape reduced to rubble by Israeli air strikes - was already taking a heavy toll on the occupied West Bank's economy.

The conflict started on Oct. 7, 2023 when Hamas-led fighters attacked southern Israel, killing about 1,200 people and seizing 250 hostages, according to Israeli tallies.

Hundreds of people have been killed in the West Bank since the start of the war in Gaza. Many of the dead were gunmen, but young people throwing stones and civilians were also killed, and thousands have been arrested.

Palestinian attacks in the West Bank and Israel have also killed dozens of Israelis. On Tuesday, two Israeli soldiers were killed and eight wounded when a gunman opened fire on troops in the area, setting off a gunfight in which the shooter was killed by Israeli soldiers, the Israeli military said.

Economic activity in the occupied West Bank fell by 23% in first half of 2024, the World Bank said in a report in December.

Unemployment stands at about 35% as Palestinian laborers have been banned from travelling to work in Israel since October 2023.

Before then, about 177,000 Palestinians worked in Israel. By the second quarter of 2024, the number had dropped to 27,000, the World Bank said.

Many of the Palestinians employed by the Israeli economy work in settlements in the West Bank, according to the International Labour Organization (ILO).

"The conflict's impact has now exceeded all previous economic crises in the Palestinian territories over the past two decades," the World Bank report noted.

Economic contraction in the occupied West Bank is estimated to have more than doubled the short-term poverty rate from 12% in 2023 to 28% by mid-2024, the ILO said last year.

In August, Israeli banks began refusing shekel cash transfers from Palestinian banks in the West Bank, a move that Palestinian officials said could soon prevent Palestinians from accessing vital goods and services.

Olive oil bandits have also appeared as desperate people steal olives from groves with the intent of pressing them into oil and selling them on the black market, Kilani said.

"This wasn't something that existed before," he said.

He described a society coming apart at the seams.

"It is not that one school is closed; it is that schools have been closed for a year; health (clinics) are closed, and people cannot get their medicine," Kilani said.

"Companies are closing, banks are closing, and people cannot get to their lands to plant them."

NO WORK

Israel has occupied the West Bank of the Jordan River, which Palestinians want as the core of an independent state, since the 1967 Middle East war.

It has built Jewish settlements there that most countries deem illegal. Israel disputes this and cites historical and Biblical ties to the land.

The United Nations Human Rights office says the new Israeli military operation in the West Bank could endanger the Gaza ceasefire and has called for an immediate end to the violence and a halt on expanding settlements.

As economic prospects disappear, residents like Robeen Idris are becoming increasingly desperate.

The 45-year-old lives in Hebron in the southern West Bank with his wife, seven children and parents. His mother has cancer, and his dad wears a pacemaker.

"There is no work because the roads are closed, and the situation is difficult," he said. "I cannot spend money to buy them food, water, and medicine."

Idris has been unemployed since August 2023. Before then, he worked in sanitation in Israeli hotels. Now those jobs are out of reach, and he has developed diabetes, which he blames on stress.

Economic conditions are forcing business and factory owners to cut their workforce, often replacing laborers like himself with their own family members, he added.

"There is no need for them to employ strangers," he said.



S&P Global Ratings Affirms Saudi Arabia Credit Rating at A+ with Stable Outlook

An aerial view of the Financial District in Riyadh (SPA)
An aerial view of the Financial District in Riyadh (SPA)
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S&P Global Ratings Affirms Saudi Arabia Credit Rating at A+ with Stable Outlook

An aerial view of the Financial District in Riyadh (SPA)
An aerial view of the Financial District in Riyadh (SPA)

Credit rating agency S&P Global affirmed Saudi Arabia's credit rating at A+ with a stable outlook, according to its latest report.

It stated that the stable outlook reflects its view that Saudi Arabia will be able to withstand pressures stemming from the ongoing Middle East conflict.

This takes into account the Kingdom's diversified energy export infrastructure, including its ability to redirect crude oil exports to the Red Sea through the East-West oil pipeline, as well as its substantial oil storage and refining capacity both domestically and abroad.

The agency also noted that the stable outlook reflects continued non-oil growth momentum and associated non-oil revenue, together with the government's ability to calibrate investment expenditure linked to Saudi Vision 2030, which should continue to support the economy and fiscal trajectory.

Despite the conflict, non-oil activity has remained reasonably resilient, supported by consumer spending.

S&P expects real GDP to contract by 0.9% in 2026 before rebounding sharply by 8.2% in 2027, supported by an increase in oil production, and to average 3.3% in 2028-2029.

The non-oil sector, including government activities, now accounts for about 70% of GDP, up from 65% in 2018, reflecting continued structural progress in economic diversification.

The agency further highlighted Saudi Arabia's substantial net general government asset position as a key strength and noted that foreign-exchange reserves reached their highest level since early 2020.

It stated that the ongoing recalibration of Saudi Vision 2030 project implementation should support fiscal resilience. S&P also expects the Kingdom to continue adopting a prudent and flexible approach in this regard, having stressed its commitment to achieving Saudi Vision 2030 goals without jeopardizing public finances.

The agency noted that ongoing structural reforms will remain important in supporting non-oil growth.


CEER to Reveal First Flagship Vehicles in Saudi Arabia on Sept. 21

A glimpse of the car's design that CEER aims to launch later this September (Asharq Al-Awsat)
A glimpse of the car's design that CEER aims to launch later this September (Asharq Al-Awsat)
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CEER to Reveal First Flagship Vehicles in Saudi Arabia on Sept. 21

A glimpse of the car's design that CEER aims to launch later this September (Asharq Al-Awsat)
A glimpse of the car's design that CEER aims to launch later this September (Asharq Al-Awsat)

CEER, Saudi Arabia's first automotive company and Original Equipment Manufacturer (OEM), has announced the reveal date of the world premiere of its first flagship vehicles, an electric sedan and SUV, on September 21.

Friday’s announcement reflects the Kingdom’s strategic direction toward developing an advanced industrial sector aligned with the objectives of Saudi Vision 2030 and strengthening Saudi Arabia’s position on the global automotive industry map.

“At the beginning of this year, we said that 2026 is the year of CEER. I am happy to announce that we’ve set the date for the reveal of our first flagship vehicles,” said CEO of CEER James DeLuca.

“The world is about to witness a historic moment, the result of an incredible journey from initial design and intensive engineering to the buildup of one of the most advanced manufacturing facilities in the world, in record time.”

CEER was created as a joint venture between the Public Investment Fund and Foxconn. It is the only company in Saudi Arabia to design, engineer, source, validate, manufacture, and soon sell and service a portfolio of aspirational vehicles.

CEER is positioned to be a key enabler of Saudi Arabia's industrial transformation (Asharq Al-Awsat)

Since its inception in 2022, CEER has been focused on building a diverse mix of Saudi talent and global experts that had grown from 20 employees to 2,300; securing key partnerships with renowned international partners including BMW, Hyundai Transys, Rimac, Siemens, Sabelt, Isoclima, ANDRITZ Schuler, Dürr, XYG, Lear, Benteler, Fangxin, Shin Young, JVIS, as well as leading local companies including Zamil Group, Abdul Latiff Jameel Group and APICO (Balubaid Group) that are driving the target of reaching 45% local content by 2034; building one of the most advanced manufacturing complexes in the world; and designing, engineering and testing vehicles that are tailor-made to the specific requirements of Saudi Arabia and the region.

CEER is positioned to be a key enabler of Saudi Arabia's industrial transformation, creating lasting economic impact and supporting the Kingdom's diversification ambitions under Vision 2030.

CEER is projected to contribute $8 billion (around SAR30 billion) to Saudi Arabia’s GDP, $21 billion (around SAR80 billion) to trade balance improvement, and create approximately 30,000 direct and indirect jobs, with 80% of direct jobs held by Saudis. CEER supports the Saudi Green Initiative target of Net-Zero emissions in Saudi Arabia by 2060.


Oil Falls but on Track for 8% Weekly Gain on Supply Concerns; US Diesel Hits Record High

WHITING, INDIANA - SEPTEMBER 08: An aerial view shows the sprawling BP refinery on September 08, 2026 in Whiting, Indiana. (Photo by SCOTT OLSON / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)
WHITING, INDIANA - SEPTEMBER 08: An aerial view shows the sprawling BP refinery on September 08, 2026 in Whiting, Indiana. (Photo by SCOTT OLSON / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)
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Oil Falls but on Track for 8% Weekly Gain on Supply Concerns; US Diesel Hits Record High

WHITING, INDIANA - SEPTEMBER 08: An aerial view shows the sprawling BP refinery on September 08, 2026 in Whiting, Indiana. (Photo by SCOTT OLSON / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)
WHITING, INDIANA - SEPTEMBER 08: An aerial view shows the sprawling BP refinery on September 08, 2026 in Whiting, Indiana. (Photo by SCOTT OLSON / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)

Oil prices fell on Friday but remained on course for a weekly gain of more than 8% while US diesel prices hit a record high as attacks along Middle East shipping routes stoked concerns about prolonged supply disruptions.

Brent crude futures were down $3.45, or 3.21%, to $104.18 a barrel at 1132 GMT.

US West Texas Intermediate crude fell $2.96, or 2.89%, to $99.52 a barrel. Both benchmarks hit their highest levels since mid-May earlier in the session.

The benchmarks reversed early gains after the Financial Times reported that foreign ministers in the Middle East are trying to work out a temporary deal with Iran to manage shipping through the Strait of Hormuz.

Brent and WTI rose more than 6% on Thursday after an escalation in shipping attacks in the region.

"Some headlines of possible new talks in the Middle East are weighing moderately on oil prices today," said UBS energy analyst Giovanni Staunovo. "I keep seeing near-term risks to the upside for oil prices, but we should expect ongoing high price volatility too."

In a further potentially significant development for Riyadh, satellite imagery showed smoke on Thursday in the vicinity of Saudi Arabia's East-West Pipeline, which has become a vital means for the kingdom to divert its crude exports away from Hormuz.

Saudi Arabia's crude supply fell by 2.3 million barrels per day on the month to 6 million bpd in August, the lowest level in more than three decades, the International Energy Agency said on Friday, citing attacks on Saudi energy facilities.

Adding to concerns over regional oil flows, Yemen's Iran-aligned Houthis on Friday reached the island of Perim in the Bab el-Mandeb Strait, four Yemeni government sources told Reuters, potentially tightening their grip on one of the world's vital shipping routes.

Iran said it had attacked 10 ships near the Strait of Hormuz on Wednesday, after the US hit five Iranian oil tankers. Iran's Islamic Revolutionary Guard Corps said it would escalate its response to any further attacks.

Vessel transits at the Strait of Hormuz fell to seven on Thursday from 11 the previous day, preliminary ship-tracking data showed on Friday.

The strait handled about 125 commodity vessels and one-fifth of global daily oil and liquefied natural gas supplies before the Iran war began in late February.

Meanwhile, two European Central Bank policymakers opened the door on Friday to further interest rate increases if a war-fuelled rise in energy prices continues and pushes up other prices in the euro zone.

SUPPLY DISRUPTIONS LIFT FUEL PRICES

Oil supply disruptions due to the Iran war, along with Ukrainian attacks on Russia's refineries, pushed the US national average diesel price past $6 a gallon for the first time on Thursday, according to price tracker GasBuddy.

"Refined products, particularly diesel, are feeling a one-two punch right now," said Tim Waterer, chief market analyst at KCM Trade.

"As long as both the Gulf shipping constraints and Russian refining outages remain in play, diesel and other refined products are likely to show a higher upside tendency than the broader crude market," he added.

Commerzbank raised its year-end Brent crude forecast to $85 a barrel from $75, while increasing its diesel forecast to $1,200 a ton from $950 and its jet fuel forecast to $1,230 a ton from $980.