Fitch says Israel's current credit rating level can absorb impact of Israel-Iran conflict
Fitch also said that it expects the risk premium in oil prices arising from the conflict to be contained within the $5-$10 range and that it does not expect the conflict to persist for more than a few weeks.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
an hour ago
- The Independent
War in Gaza tests ties between Israel and traditional European allies
Britain threatened Tuesday to take further action against Israel if it does not agree to end the war in Gaza, a day after two dozen mostly European countries condemned Israel's restrictions on aid shipments into the territory and the killings of hundreds of Palestinians trying to reach food. Despite the increasingly strong words, many are skeptical that Israel will yield to such pressure without more significant punitive action — and especially without the backing of Germany and the U.S., Israel's strongest Western allies. Outrage over Israel's actions in Gaza has grown in Europe as images of suffering Palestinians have driven protests in London, Berlin, Brussels and other capitals. More recently, the almost daily killings of Palestinians while seeking aid have tested the EU's friendly relationship with Israel like never before. But Europe remains divided on its stance toward Israel, and its limited sanctions and condemnations so far have had little effect. Here's a look at what Europe can do or has done — and why it hasn't done more. EU reviews its ties with Israel over Gaza The EU has been reviewing its diplomatic and trade ties with Israel over its conduct in Gaza. An internal report recently found indications that Israel has violated its human rights obligations under the EU-Israel Association Agreement, a 25-year-old legal framework governing the political relationship and trade cooperation between the two sides. But so far the EU has taken no action to suspend such ties. Some have criticized the EU — Israel's biggest trading partner — for a lack of political courage and for underestimating its leverage on Israel. 'What we can see is mounting pressure, but those are words, those are not actions,' said Yossi Mekelberg, a senior consulting fellow at London's Chatham House think tank. Individual countries, such as Britain, Canada and Australia, have slapped sanctions on Israeli settlers in connection with violence against Palestinians, including asset freezes and travel bans. But such measures have yielded few results. In addition, Australia, Canada, New Zealand and Norway have sanctioned two far-right Israeli ministers for allegedly 'inciting extremist violence' against Palestinians in the West Bank. The U.K. said in May that it would suspend free trade talks with Israel, also over the West Bank. British Foreign Secretary David Lammy hinted at stronger action Tuesday, saying he felt 'sickened' by the suffering in Gaza, but he did not specify what measures were being considered. 'We will continue to pressure. We will continue to act,' Lammy told British media, stressing the need to work with allies to get the 'maximum result.' Speaking Tuesday on X, European Commissioner Ursula von der Leyen reiterated the EU's call for 'the free, safe and swift flow of humanitarian aid. And for the full respect of international and humanitarian law. Civilians in Gaza have suffered too much, for too long.' If Israel does not change course, options could include fully or partially suspending the EU-Israel Association Agreement, which would require a unanimous agreement by all 27 members of the EU. Other steps could be suspending an aviation agreement, blocking imports from settlements, limiting scientific and technological cooperation, and curtailing travel for Israelis in the visa-free zone known as Schengen, according to a leaked document sent by the EU's top diplomat, Kaja Kallas, to member states. The document was seen by The Associated Press and verified by two EU diplomats. Nations could act on their own, including sanctioning specific companies or individuals in Israel or the occupied West Bank. Why hasn't Europe taken stronger action? The short answer is that Europe remains divided, and it is highly unlikely that the entire EU would reach unanimity to drastically dial up pressure on Israel. European nations such as Ireland, the Netherlands and Spain have publicly urged the EU to reassess its ties with Israel, charging that Israel has violated human rights conditions in its agreement with Brussels. But Germany and Hungary have staunchly defended Israel, along with Romania, which just bought air-defense systems from Israel. Suspending EU ties with Israel would require a unanimous decision, which is likely impossible to obtain. Germany is the main holdout Monday's joint statement by 25 countries was rejected by the U.S. ambassador to Israel, Mike Huckabee, who called it 'disgusting.' Western allies should instead pressure the 'savages of Hamas," he said. Israel condemned the countries' stance and said Hamas was the sole party responsible for prolonging the war. Hamas triggered the ongoing 21-month war with its Oct. 7, 2023, attack on southern Israel, and continues to hold some 50 Israeli hostages. One significant outlier in Europe is Germany, traditionally a staunch ally of Israel in Europe, with relations rooted in the memory of the Holocaust. The country has vehemently rejected the idea of suspending the EU's association agreement with Israel. Chancellor Friedrich Merz and other officials have gradually sharpened their criticism of Israel's actions in Gaza in recent months. But they still appear to favor trying to influence Israel by conveying their concerns directly. Germany did not join allies in signing Monday's letter condemning Israeli restrictions on aid. There were signs of pushback within the German government Tuesday, when the parliamentary leader of Merz's junior coalition partner, the Social Democrats, said Germany should join Britain's initiative and that 'double standards undermine our international credibility.' Merz said Monday that he had spoken at length with Netanyahu last week and 'told him very clearly that we do not share the Israeli government's Gaza policy.' 'The way the Israeli army is acting there is unacceptable,' he said. Nomi Bar-Yaacov, an expert on diplomacy in the Middle East, said any EU action must go beyond words. 'Israel doesn't listen to language," Bar-Yaacov said. "I mean, language doesn't go anywhere with the current Israeli government. Unless a mechanism is agreed and enforced promptly, then the words have no meaning whatsoever.' ___ McNeil reported from Brussels. Associated Press Writer Geir Moulson in Berlin contributed to this report.
Reuters
an hour ago
- Reuters
Oil prices fall as key trade talks falter ahead of tariff deadline
NEW YORK, July 22 (Reuters) - Oil prices fell for a third consecutive session on Tuesday, as fading hopes for a trade deal between the U.S. and Europe threatened to slow economic activity in the world's largest oil markets. Brent crude futures were down 92 cents, or 1.3%, to $68.29 a barrel by 12:03 p.m. EDT. U.S. West Texas Intermediate crude futures for August delivery, set to expire on Tuesday, fell $1.09, or 1.6%, to $66.11 per barrel. The more active September WTI contract was down 92 cents, or 1.4%, to $65.03 a barrel. The European Union was exploring a broader set of possible counter-measures against the U.S. as prospects for an acceptable trade agreement with Washington fade, EU diplomats told Reuters on Tuesday. U.S. President Donald Trump, who has set an August 1 deadline for countries to secure trade deals or face steep tariffs, earlier threatened a 30% tariff on EU imports if a deal is not reached. Prospects of an interim trade deal between the U.S. and India before that deadline have also dimmed, two Indian government sources told Reuters. "It appears that tariff factor is becoming a greater focus ahead of the U.S. deadline," analysts at energy advisory firm Ritterbusch and Associates said in a note. Diesel was the top decliner across the energy complex, reflecting concerns about the economic outlook. The industrial fuel, used predominantly in manufacturing, construction and heavy transport, had been the top performer in oil markets over recent weeks due to tight global supplies. U.S. ultra-low sulfur diesel futures slid more than 3% on Tuesday to $102.16 a barrel. Still, crude price declines may be limited by the possibility that the U.S. could scale back the tariffs it has threatened or even delay them, Ritterbusch and Associates said. Meanwhile, a Reuters poll of analysts showed U.S. crude oil inventories likely fell by about 600,000 barrels in the week to July 18.
BBC News
2 hours ago
- BBC News
Gaza war: Is the UK selling arms to Israel?
UK Foreign Secretary David Lammy has condemned Israel's conduct in Gaza and said that Britain could "do more in the coming weeks" if the Israeli government does not change how it is pursuing the war in the expressed anger that the "international community has not been able to bring this war to an end" and said he was "sickened" by the killings of Palestinians at aid centres by Israeli forces in recent Israel began its military campaign in Gaza after the 7 October attacks, significant public attention has focused on the issue of assistance provided by the UK. Much of the weaponry used in Israel Defense Forces' (IDF) strikes on the strip has been built or sold by Western information around the extent of the UK's military support to Israel often remains unclear or classified, and some MPs have called for a public inquiry into the extent of the assistance. Does the UK supply Israel with arms? The UK is not one of Israel's main suppliers of arms. The US is by far the biggest seller - helping Israel develop one of the world's most advanced militaries - followed by Germany and 2015, the UK has approved arms export licences to Israel worth over £500m ($676.4m) - peaking in 2018, according to Campaign Against Arms Trade (CAAT) pressure much of the attention around the UK's support for Israel has focussed on parts made in Britain for the F-35 jet. A state-of-the-art multi-role fighter, it has been used extensively by Israel to strike UK supplies between 13-15% of the components used in the jet, including ejector seats, rear fuselage, active interceptor systems, targeting lasers and weapon release the Labour Party came to power last year, it suspended 30 out of 350 arms export licences, affecting equipment such as parts for fighter jets, helicopters and drones. Any UK company that wants to sell arms abroad must apply for a licence, and the government said at the time that there was a "clear risk" the equipment could be used to commit serious violations of international crucially, parts for the F-35 were not included in the export ban. The government said it could not prevent Israel obtaining these components as they are sent to manufacturing centres abroad as part of a global programme - not directly to Israel. Professor Anna Stavrianakis, an expert in UK Arms Export, described the government's decision to allow for this exemption as "an enormous loophole"."UK-made parts for the F-35 mostly go to the USA, where they are incorporated into jets bound for Israel," she told BBC Verify, noting that because the White House "does not want to stop supporting Israel", the UK export bans were quite limited in their UK also co-developed the Hermes drone, which has been widely used in Gaza. While the UK version of the aircraft, called the Watchkeeper 450, is unarmed, the Israeli-made Hermes drone can be armed with Spike missiles and was reportedly used in the attack that killed seven World Central Kitchen aid workers last is hard to say what the UK is still exporting to Israel under the active licences. Foreign Secretary David Lammy said last year that the ban was not a "blanket ban or an arms embargo" and said it remained essential that Israel could defend itself from to the Department of Business and Trade, 161 of the extant licences relate to military products.A UK Parliament report said that the remaining licences could include "items such as trainer aircraft and naval equipment, and dual-use items for civilian use in telecoms and data equipment". Has the UK shared intelligence with Israel? The extent to which the UK has shared intelligence with Israel since the 7 October attacks is unclear. The government has a long-standing "defence partnership with Israel" which defence officials say includes "education, joint training and capability development".The Royal Air Force (RAF) has flown hundreds of surveillance flights over Gaza since December 2023, reportedly using Shadow R1 spy planes based at an RAF base in Akrotiri in nearby an interview on Monday, Lammy insisted that the RAF flights over Gaza have not led to the sharing of any military intelligence with the IDF."It would be quite wrong for the British government to assist in the prosecution of this war in Gaza," the foreign secretary said. "We are not doing that." In 2023 the UK acknowledged that some of its "unarmed" drones circling over the strip were aiding in the search for Israeli hostages taken by Hamas during the 7 October attacks. There are 50 people still held by Hamas, with 20 believed to be Forces Minister Luke Pollard reaffirmed that stance in April 2025, telling MPs that UK drone flights over Gaza were being conducted with the "sole purpose of locating hostages".The Ministry of Defence (MoD) has refused to comment on whether Israeli aircraft have access to the RAF's base in Cyprus. But BBC Verify also identified Israeli Air Force planes in UK airspace over the past year after reports in the independent outlet DropSite. Several Re'em refuelling planes appeared on specialised flight tracking sites over RAF bases at Brize Norton and MoD spokesperson told BBC Verify: "It is standard practice to routinely authorise requests for limited numbers of allies and partners to access the UK's air bases.""We cannot comment on or provide information relating to foreign nations' military aircraft movements or operations," the spokesperson added. Are Israeli troops training in the UK? The UK often runs training courses for the militaries of allied nations, many of which focus on leadership, logistics and cyber-operations. For example, thousands of Ukrainian troops have come to Britain since Russia launched its full-scale invasion in 2022 for basic Coaker - a minister of state at the UK MoD - said in April that "fewer than 10" IDF personnel have been trained on non-combat military academic courses in the UK every year since declined to say exactly how many IDF troops had taken part in courses over that time, or what classes they had taken "in order to protect personal information". But ministers have insisted that the courses emphasise the importance of complying with international humanitarian Forces Minister Luke Pollard confirmed in June that "a limited number of Israel Defense Forces personnel" were taking part in UK-based training courses, but declined to offer further details. Has the UK sanctioned Israel for its actions in Gaza? The UK's approach to holding Israel accountable for its campaign in Gaza changed after the general election in 2024. The new Labour government dropped the government's opposition to arrest warrants issued for Prime Minister Benjamin Netanyahu and former defence minister Yoav Gallant by the International Criminal Court (ICC).Since then, it has become more vocal in its criticism of Israeli leaders, and joined 27 other nations this week in condemning the "inhumane killing of civilians" seeking food and water in the Labour government suspended talks to upgrade its free trade agreement with Israel in May, with Lammy calling the Israeli treatment of Palestinians "an affront to the values of the British people".But while the government has sanctioned two far-right Israeli ministers for "inciting violence" in the occupied West Bank, it has yet to impose any sanctions on Israel directly for its actions in Gaza, which have killed at least 59,029 people according to the Hamas-run health ministry. What do you want BBC Verify to investigate?
