Qatar Warns of ‘Industrial Catastrophe’ If Strait of Hormuz Remains Closed
By Kyle Anzalone | The Libertarian Institute | September 8, 2026
Qatar is warning that there will be significant global consequences if the Strait of Hormuz is not reopened soon. Iran closed the Strait in response to the war started by the US and Israel. President Donald Trump also imposed a blockade of Iranian ports.
On Monday, Qatar’s Foreign Ministry spokesperson, Mohammed Al-Ansari, said reopening the Strait of Hormuz remains a priority, warning that the prolonged disruption could lead to an “industrial catastrophe.”
The Strait of Hormuz has become a major issue for Trump. Before the war, the Strait was treated as an international waterway. However, after the US and Israel attacked Iran, Tehran seized control of the Strait.
Since then, Tehran has limited traffic to nations that are not participating in the war against Iran. Additionally, Iran is requiring vessels to use preapproved shipping lanes and pay a “service fee.”
Tehran says any agreement to end the conflict must recognize Iran’s sovereignty over the Strait. Iran is in negotiations with Oman to establish new protocols for ships transiting the waterway. Washington is demanding that Tehran return the Strait to its pre-war status.
The US has attempted to force open the Strait of Hormuz. The US is currently escorting tankers through the waterway in hopes of defending the vessels from Iranian missiles and drones. Over the past week, US warships and tankers were targeted by Iranian missiles and drones.
While US officials have claimed that the amount of oil exiting the Strait is close to prewar levels, monitoring agencies say only a small fraction is getting out of the Persian Gulf.
Trump has attempted to pressure US allies into joining a coalition to reopen the Strait without success. The President has recently turned his focus toward South Korea. He recently scaled back war games with Seoul, in part, because South Korea refused to aid the war against Iran.
On Tuesday, Seoul said it still had not determined if it would provide assistance to the war. “We are closely consulting with the international community, including the US, on ways to make a substantive contribution toward the swift restoration of freedom of navigation in the Strait of Hormuz and peace and stability in the Middle East,” Defense Ministry spokesperson Chung Bin-na said. “No specific measures have been decided at this point.”
Iran warned South Korea that any involvement in the US war would have “consequences.”
Yemeni drones reportedly struck Saudi oil, military sites
Al Mayadeen | September 8, 2026
The Yemeni Resistance, Ansar Allah, appears to have launched a major drone attack targeting sites in southwestern Saudi Arabia in recent hours, with reported strikes and fires detected around Jazan, Abha, and Khamis Mushait.
According to data compiled by Egypt’s Intel Observer, the operations appear to have affected several strategic facilities, including Aramco’s Jazan oil refinery and the Jazan Bulk Plant, where multiple hotspots were detected. Another hotspot was also identified near King Abdullah Airport in Jazan.
Reported strikes target oil and military facilities
Satellite data from NASA’s Fire Information for Resource Management System (FIRMS) VIIRS also showed multiple heat signatures at Aramco’s bulk plant in Abha, suggesting the facility was directly hit in a recent operation.
Additional hotspots reportedly appeared around oil and gas storage facilities at the Asir Central Power Plant in Abha. The facility supplies baseload electricity to the southern region of Saudi Arabia.
King Khalid Air Base also reportedly hit
King Khalid Air Base in Khamis Mushait also appears to have been targeted, with a fire hotspot detected at the site.
The satellite detections indicate possible fires at several locations, but they do not by themselves establish the cause of the heat signatures.
Saudi Arabia admits hits
The Saudi Ministry of Energy announced that a number of energy facilities and infrastructure in the southern region of the Kingdom were targeted this morning.
The ministry said the attacks caused fires to break out at several sites, resulting in the temporary suspension of some operations.
Meanwhile, the Yemeni Armed Forces announced early Tuesday that it is preparing a statement to “announce a large-scale military operation deep inside Saudi territory.”
Ansar Allah repels Saudi-backed advance in Yemen’s al-Jawf
At the same time, the Yemeni Armed Forces repelled an advance by Saudi-backed mercenaries toward the al-Labanat Mountains east of al-Jawf province, according to Mohammed al-Farrah, a member of Ansar Allah’s political bureau.
Al-Farrah said on Tuesday that Yemeni forces targeted reinforcements belonging to Saudi-aligned forces in al-Jawf with several ballistic missiles, destroying and disabling dozens of military vehicles and transport units.
He said the strikes also resulted in dozens of deaths and injuries among the Saudi-backed forces, including commanders.
Lavrov: Russia, China keep no technological secrets from each other
Al Mayadeen | September 8, 2026
Russian Foreign Minister Sergey Lavrov said Russia and China have built an equal, strategic partnership in which neither side withholds technology from the other, in remarks published Tuesday.
Speaking to the online project Sama Menshova, Lavrov said the absence of technological secrecy between the two countries reflects the balanced and mutually beneficial character of their comprehensive strategic partnership, pointing to joint agreements as evidence.
Asked whether Russia risks slipping into the role of China’s “junior partner,” Lavrov rejected the framing outright, saying Moscow and Beijing have never approached the relationship in those terms.
The foreign minister praised China’s standing as a leading technological power across both applied and theoretical science, citing its output of high-tech goods, robotics and reusable spacecraft.
He said Russia’s own scientific tradition is equally strong, and that the two countries’ strengths complement one another, pointing to joint work underway in space exploration, advanced technology and artificial intelligence.
Maritime trade between the two countries climbs
Separately, Russia’s Transport Ministry said Tuesday that maritime cargo traffic between Russian and Chinese ports rose 19.2 percent year-on-year in the first half of 2026, reaching 109.5 million tonnes.
The ministry released the figures during the 30th plenary session of the Russian-Chinese Subcommission on Transport Cooperation, held as part of the Second Russian-Chinese Forum in Khabarovsk.
Officials noted that sea cargo volumes between the two countries had already grown 4.3 percent across all of 2025, reaching 196.75 million tonnes, before accelerating further in the opening months of this year.
Broader trade ties continue to expand
This technological and maritime cooperation comes against a backdrop of fast-growing overall trade between the two countries.
According to China’s General Administration of Customs, trade between Russia and China rose 28.4 percent in the first eight months of 2026 compared with the same period last year, reaching $185 billion.
Chinese exports to Russia totaled $84.675 billion between January and August, up 30.7 percent year-on-year, while Russian exports to China climbed 26.5 percent to $100.37 billion over the same period, customs data released Tuesday showed.
The figures leave Russia with a trade surplus of more than $15.6 billion over the eight-month period.
US ambassador threatens Britain with economic retaliation over Israeli settlement trade ban
The Cradle | September 8, 2026
US Ambassador to Israel Mike Huckabee has said Washington will certainly hit back if Britain proceeds with trade sanctions targeting illegal Israeli settlements in the occupied West Bank, telling BBC that a response could come from the federal government and from individual US states.
Huckabee said acting in this way against “a partner, Israel” risked a “huge economic impact on British businesses,” which he warned could find themselves “banned” from operating “in a number of states.”
He told BBC the planned ban on illegal Israeli settlement goods would be “discrimination against the Jewish people,” singling out Florida as a state that could move against British trade.
The ambassador had already accused the British government of “Jew hate” over the weekend, responding to criticism of Israel’s actions in Gaza by British Foreign Secretary Ed Miliband, who is himself Jewish.
Florida Republican Congressman Randy Fine issued a parallel threat, saying legislation he pushed through as a state lawmaker “would ban any British company forced to comply from doing business with any state or local government in Florida.”
Firms joining the boycott would also be shut out of the state if they needed permits or tax dealings with authorities to function, he said.
Israeli President Isaac Herzog, in a filmed statement, said Britain would land on “the wrong side of history,” calling the step “a grave miscalculation” and “a gross interference in the democratic elections of a sovereign nation.”
This comes after UK Prime Minister Andy Burnham moved to impose a full ban on trade with illegal Israeli settlements in the occupied West Bank, along with possible sanctions on Israeli ministers and individual settlers.
Israeli Foreign Minister Gideon Saar has publicly attacked British Foreign Secretary Miliband, calling his statement on the E1 settlement project patronizing.
The illegal E1 settlement bloc would cut the occupied West Bank in half, isolate it from occupied East Jerusalem, and bury any prospect of a Palestinian state, an outcome Israeli officials have stated as the goal.
Israel’s Rafael to produce missile parts at Volkswagen factory in Germany
The Cradle | September 7, 2026
Rafael Advanced Defense Systems plans to begin manufacturing parts for Israel’s Iron Dome missile systems at the Volkswagen factory in Osnabrueck, Germany, WirtschaftsWoche reported on 7 September.
According to the German business magazine, Volkswagen will sell the plant to a consortium which will include the German federal state of Lower Saxony and a Bavarian investment fund.
Volkswagen is streamlining its operations in Germany as industrial production in the country slows following the loss of cheap Russian natural gas after the start of the Russia–Ukraine war and the destruction of the Nord Stream Pipeline in 2022.
The German automaker will also close four factories, laying off up to 50,000 employees.
Olef Lies, minister-president of Lower Saxony, participated in the negotiations and will announce the new partnership on Monday.
The Financial Times (FT) first reported in March that Volkswagen and Rafael were in talks to shift production at the Osnabrueck plant from cars to missile components.
Rafael had planned to build missile parts and motors, rather than explosives, which would be manufactured at a separate facility, the sources speaking with FT said.
A deal between Volkswagen and Rafael for the sale of the plant was reached in April.
However, it was blocked by the Qatar Investment Authority (QIA), which holds 10 percent of Volkswagen shares and 17 percent of its voting rights.
To bypass Qatari opposition, Lower Saxony was brought in to help purchase the factory alongside Rafael and Aurelius Capital, a Munich-based investment fund.
The Osnabrueck plant currently employs 2,300 employees. It is unclear whether employees will retain their jobs or what employment protections they will receive.
Volkswagen reportedly plans to sign a memorandum of understanding (MoU) with Aurelius Capital to protect workers’ rights at the factory.
The Iron Dome, Arrow, and David’s Sling missile defense systems have helped Israel wage the genocide in Gaza and wars on Lebanon, Iran, and Yemen by shielding Israel from retaliatory missile and drone attacks.
A shift from automobile to missile production would mark Germany’s renewed focus on manufacturing weapons amid the ongoing wars between the US and Iran, and Ukraine and Russia.
Germany and NATO are strong supporters of Ukraine and say they are preparing for a direct conflict with Russia in the coming years.
Support for Israel’s security is at the core of Berlin’s foreign policy, German leaders have stated, citing as justification the country’s Nazi past.
Der Spiegel revealed last week that despite the genocide in Gaza, Berlin has approved nearly $930 million in military equipment exports to Israel during the first half of this year alone.
Sanctioning a Ghost: Europe’s Empty Gesture Against Iran
By Larry C. Johnson | SONAR21 | September 3, 2026
US Treasury Secretary Scott Bessent announced today that the European Union has “officially joined” the American sanctions campaign against Iran — Operation Economic Outcast — and framed Tehran’s choice in the usual absolutes: complete global isolation and a subsistence economy, or a path back to normalcy. It made a commanding headline. It is a hollow one. You cannot embargo a trading partner you have already stopped trading with, and in economic substance that is precisely what Europe did years ago. Today it merely issued a press release about it.
The trade Europe is threatening to withdraw barely exists
One number frames the entire affair. In 2025 the whole of the European Union traded about €3.7 billion in goods with Iran — roughly $4 billion — against Iran’s total foreign trade of some $182.6 billion. Europe therefore accounts for about 2 percent of Iran’s commerce. That is the sum of the leverage now being brandished: a rounding error dressed up as a thunderbolt.
And it is a hollow 2 percent, because the flow runs almost entirely one way. Europe still sells Iran a little machinery, chemicals, and pharmaceuticals — about €3 billion, or 4 to 5 percent of Iran’s import bill. It buys almost nothing back: EU imports from Iran were €0.76 billion, under 1 percent of Iran’s exports, since Europe no longer takes meaningful Iranian oil. Germany, Italy, and the Netherlands make up nearly two-thirds of even this remnant. Withdraw it in full and you bruise a few exporters in Stuttgart and Milan far more than you trouble the treasury in Tehran.
Europe’s leverage was spent years ago
The collapse Europe is now formalizing already happened, slowly, over more than a decade. EU–Iran trade topped €27 billion in 2011 and reached €20.7 billion in 2017, during the nuclear-deal window — a period when Europe genuinely was a major Iranian partner, on the order of 15 to 20 percent of Tehran’s trade. The 2018 US withdrawal began bleeding it out; the trend never reversed; a fresh EU sanctions package in January 2026 drained it further. By 2025 it stood at €3.7 billion. Europe dismantled its own bridge to Iran plank by plank across seven years, and Iran long since built new ones — to China above all, which takes the bulk of its oil, and to the UAE, Turkey, and Iraq for the rest. The marginal Iranian barrel is priced in Shandong, not Rotterdam. There is nothing left in Europe’s hand to take away.
Sanctioning from a sickbed
Here is what makes the gesture worse than empty: Europe is declaring economic war on Iran at the precise moment its own major economies can least afford one — and while they are being bled by the very war Europe is now underwriting.
The eurozone crawled through the first quarter of 2026 at 0.1 percent growth, its weakest in nearly a year, with the composite PMI stuck in contraction and energy inflation running near 11 percent. That last figure is the tell, because it is a direct transmission of this war: the Iran shock and the throttling of the Strait of Hormuz sent fuel prices surging into economies that, unlike the United States, import their energy. The European Central Bank has warned that a prolonged conflict could tip Germany and Italy into technical recession by year’s end.
The particulars are grim. Germany — Iran’s largest European trading partner, and thus the country with the most of that thin trade to forfeit — is also the continent’s biggest casualty. It has already endured two straight years of recession, its manufacturing base has shrunk some 15 percent from its 2017 peak in what economists now call outright deindustrialization, its automotive crown jewel is shedding tens of thousands of jobs, and unemployment sits at a twelve-year high. A recession in 2026 would be its fourth in four years, an outcome with no post-war precedent. France is paralyzed in parallel — a deficit near 5.1 percent of GDP, its fifth prime minister in two years, growth downgraded toward 0.4 percent. Italy limps along near 0.5 percent, its consumers acutely exposed to exactly the energy swings this war is producing.
So the tableau is this: a bloc whose largest economy is deindustrializing under an energy shock, whose second-largest is fiscally ungovernable, and whose third is one bad quarter from recession, has volunteered to prolong the conflict driving its energy bill — by forgoing a trickle of trade that costs Tehran almost nothing and its own exporters rather more. Germany torches a bridge it could use while standing in a house that also is burning.
The one caveat, and why it fails too
In fairness, Operation Economic Outcast was never really about Europe’s own thin trade with Iran. It is a secondary-sanctions weapon — the threat to bar any firm or nation dealing with Iran from the dollar system — and Europe’s theoretical value lies not in the goods it stops selling but in the financial and shipping chokepoints it controls: euro clearing, European banks, the reinsurance and protection-and-indemnity clubs that underwrite tankers. But that leverage aims at Iran’s trade with third countries, chiefly China — and Bessent has conspicuously declined to say whether Washington will actually sanction Chinese banks, because everyone understands what that would cost. Iran, meanwhile, has spent seven years rebuilding its commerce on Chinese banks, yuan settlement, barter, and a shadow tanker fleet engineered to be untouchable by European paperwork. The US naval blockade ostensibly has done more to choke Iranian exports this year than any designation list will. Europe adding its signature raises the compliance risk for the handful of European firms still tempted by Iran. It does essentially nothing to the Chinese refiners who are the actual market.
A sanction is worth what it denies a target that the target cannot easily replace. By that measure Europe’s hand is all but empty: its direct trade with Iran has withered to roughly 2 percent of Tehran’s commerce, in goods Iran already sources from China, Turkey, and the Gulf, and the one channel where Europe might still matter points at a Beijing that Washington will not confront. What makes the move not merely futile but faintly self-destructive is that Europe is making it from a sickbed — its industrial engine stalling, its energy costs inflated by this very war — in order to prolong the fight that is inflating them. The announcement signals Western unity and puts the EU on the record. As a blow against Iran, it is a spent cartridge fired from a trembling hand.
Tens of thousands of US university jobs at risk as Chinese students — and their money — stay home
Inside China Business | September 3, 2026
American colleges and universities are seeing another double-digit collapse in foreign enrollments. Chinese students increasingly are opting to study in domestic universities, which are climbing in global rankings, cost little, and afford better career opportunities after graduation. The steep declines are devastating to university budgets. Tuition and fees collected by larger universities are lower by hundreds of millions of dollars annually, while smaller colleges are struggling to survive. Closing scene, Hongen Pavilion, Chongqing
Resources and links: America’s lost Chinese students are staying home instead https://asiatimes.com/2026/08/america…
New Research: Loss of 111,000 International Students Could Cost U.S. Economy $3.4 Billion https://www.nafsa.org/fall2026outlook
Why Americans should care when international students stop coming https://www.luminafoundation.org/news…
International Students Contributed $43 Billion to the U.S. Economy in 2024-2025; Fall 2025 Spending Down by $1.1 Billion https://www.nafsa.org/about/about-naf…
International student enrollment falls amid tighter U.S. visa policies, reports show https://www.cnbc.com/2026/08/21/inter…
How New Visa Limits Are Already Affecting Colleges https://www.insidehighered.com/news/g…
Once globally preeminent, U.S. universities are sliding into decline https://hechingerreport.org/once-glob…
Research on Education Services https://www.trade.gov/research-educat…
University of Maryland, College Park, Estimated Cost of Attendance https://marylandglobal.umd.edu/global… Tuition & Costs https://www.admissions.illinois.edu/t…
US Colleges Report 20% Drop in Foreign Students Over Visa Clampdown https://www.bloomberg.com/news/articl…
As U.S. Enrolls Fewer International Students, Universities in Asia Are Going the Other Direction https://time.com/article/2026/05/12/u…
OPT growth pushed USA to record high of international enrolment in 2024//25, but drop in new students this year https://studytravel.network/magazine/…
More than a quarter of private colleges are at risk of closing, new projection shows https://hechingerreport.org/more-than…
America’s STEM graduate shortage is much worse than we thought.
• America’s STEM graduates shortage is much …
Europe enters winter with ‘dangerously low’ gas reserves amid Persian Gulf supply shock: Report
The Cradle | September 3, 2026
Europe is heading into winter with dangerously low natural gas reserves, Bloomberg reported on 3 September, amid high prices driven by the US-Israeli war on Iran and rising competition for supply in the global market.
According to the European Commission’s most recent update, gas storage levels in the EU are at 65 percent.
To meet its lowest storage target of 75 percent, Europe will need to purchase 100 terawatt-hours of gas before the end of the year, Bloomberg calculations show.
Such purchases would cost more than $8 billion at current prices, making stockpiling uneconomical.
Governments and utilities across Europe have delayed natural gas purchases in hopes that additional supply becomes available and prices fall in time to refill before winter.
Gas prices have doubled since February due to the US-Israeli war on Iran as the Strait of Hormuz remains effectively shut, disrupting exports of gas from Qatar, a major international supplier.
European countries have sought to build inventories ahead of each winter following natural gas shortages resulting from the Russia–Ukraine war that began in 2022.
Europe has deliberately sought to limit its own purchases of Russian gas in response to the war. Additionally, the Nord Stream 2 Pipeline, which supplied cheap gas from Russia to Germany, was destroyed in September 2022 under mysterious circumstances benefiting the US, Ukraine, and Poland.
US natural gas producers have benefited from both the destruction of Nord Stream and the closure of the Strait of Hormuz.
The US has become the world’s top exporter of natural gas after rushing to fill the gap in lost Qatari and Russian gas supplies by providing more expensive liquefied natural gas (LNG) shipped by tankers across the Atlantic and Pacific oceans to Europe and Asia.
Germany and other EU nations are not expected to suffer gas shortages this winter, as they can pay for the needed gas supplies despite the higher prices.
However, late European purchases at high prices could cause shortages and energy blackouts in poorer countries that lack the funds to compete to purchase the same LNG cargoes.
“The potential for a global ‘fight for fuel’ is there, particularly in a colder winter,” stated Go Katayama, principal insight analyst for LNG at maritime data tracking platform Kpler.
Bangladesh and Pakistan are among those countries most vulnerable to shortages. Both countries suffered blackouts and factory closures after the natural gas crisis in 2022.
However, more expensive gas purchases will drive higher inflation in Europe and expand the risk of a long period of stagnation, sluggish growth, and de-industrialization.
Another European country transfers gold out of US
RT | September 3, 2026
The central bank of the Netherlands has become the latest country to move gold holdings out of the United States, announcing on Wednesday that it had transferred 86 tons of bullion to London. The bank described the move as “crisis preparedness” during a time of “increasing geopolitical unrest.”
The transfer was carried out between March and August. The bulk of the gold was moved from New York, with the rest coming from Canada. Only about 27 tons were physically transported across the Atlantic, while the remainder was accomplished through sales in the Americas and repurchases in London. Prior to the transfer, the Dutch central bank (DNB) had held 313 tons in North America.
“With this relocation, we have improved the tradability of our gold reserves,” according to a written statement by DNB Governor Olaf Sleijpen. “We expect that we will never need to use them, but we do need to strengthen our resilience and preparedness.”
The DNB’s move comes after France’s central bank sold its remaining 129 tons of gold held at Federal Reserve vaults in New York between July 2025 and January 2026, leaving it with no bullion in the United States. The proceeds from the sale were used to purchase an equivalent amount of gold in Europe.
In 2017, under the first administration of US President Donald Trump, Germany’s Bundesbank announced that it had completed the transfer to Frankfurt of 300 tons of its gold held in New York. During Trump’s second term, several prominent German economists have called for the removal of the bank’s remaining holdings from the US.
Venezuela under President Hugo Chavez repatriated about 160 tons of its gold reserves from foreign banks, a move that was completed by January 2012. However, some 31 metric tons of Venezuelan gold are still held by the Bank of England. Efforts undertaken by then-President Nicolas Maduro to bring the bullion home were stymied by Great Britain, which did not recognize Maduro as the legitimate head of Venezuela’s government.
The DNB praised Bank of England-held gold as being “the world’s most easily tradable gold.” The Dutch central bank reported owning 612.4 metric tons as of the end of 2025, worth about €72 billion (about $84 billion).
The Bishkek Declaration: What the SCO Signed, and Why India’s Name on It Matters
By Larry C. Johnson | SONAR21 | September 2, 2026
The Shanghai Cooperation Organisation closed its 26th heads-of-state summit in Bishkek on September 1 with a joint statement — the Bishkek Declaration — timed to the bloc’s 25th anniversary and signed by the leaders of all ten member states: Russia, China, India, Pakistan, Iran, Belarus, Uzbekistan, Kazakhstan, Tajikistan, and the host, Kyrgyzstan. It is a long anniversary text, adopted alongside some 28 other outcome documents and amendments to the SCO Charter, and its language on the war in Iran is unambiguous. But the single most consequential fact about the declaration is not what it says. It is whose signature sits on it. Narendra Modi’s India — a Quad member, a US strategic partner, and a country the same declaration implicitly defends against Washington’s tariffs — put its name to a text condemning American and Israeli military action, mourning a dead Iranian supreme leader, and rejecting the sanctions architecture the United States has built. That signature is the story.
What the declaration says
On the war, the SCO condemned the military strikes on Iranian territory that it said caused numerous civilian casualties and significant damage to Iran’s economy, characterizing those strikes as violations of international law and the UN Charter that created serious risks to international peace and security. It expressed condolences on the death of Supreme Leader Seyyed Ali Khamenei — killed earlier in the war — reaffirmed support for Iran’s sovereignty and territorial integrity, and called for the conflict to be resolved solely through political and diplomatic means. It extended the point to Gaza, calling a comprehensive and just settlement of the Palestinian question the only path to stability in the region.
On sanctions, without naming the United States, the members opposed “unilateral coercive measures” inconsistent with UN and WTO rules and damaging to the global economy — language that simultaneously covers US sanctions on Iran, Western sanctions on Russia, and the tariff pressure on India. On the nuclear question, they upheld Iran’s position directly, affirming every member’s “inalienable right” to peaceful nuclear energy and declaring that measures restricting that right are contrary to international law.
The rest is familiar SCO scaffolding, weightier for the anniversary: an open, non-discriminatory multilateral trading system; implementation of the SCO economic and energy cooperation strategies to 2030; a push to reform global governance toward a multipolar order that “excludes bloc-based and confrontational” methods; responsible use of artificial intelligence; and the ritual condemnation of the “three evils” of terrorism, separatism, and extremism, with a pointed line that “double standards” in counterterrorism are unacceptable. Pakistan takes the rotating chairmanship for 2026–27 and will host the 2027 summit in Islamabad.
From the Knesset to Bishkek: the anatomy of a reversal
To read India’s signature as simple hedging understates it. Six months earlier, Modi had planted India firmly in the opposite camp — and the Bishkek text reverses, almost line for line, the position he took in February.
On February 25–26, 2026, Modi made a state visit to Israel: the first Indian prime minister to address the Knesset, honored with the Speaker’s Medal as the first foreign leader to receive it, presiding over the elevation of the India–Israel relationship to a “special strategic partnership” with 27 bilateral outcomes and a defense co-production track. Two days after he left, on February 28, the US and Israel opened their war on Iran. India’s response was conspicuous silence: it did not condemn the strikes on Iranian sovereignty, and it did not condole the killing of Iran’s supreme leader. New Delhi zeroed out its Chabahar port funding in the 2026–27 budget under US pressure, let bilateral trade with Iran collapse, and offered only a muted, “humanitarian” reaction when an Iranian frigate returning from joint exercises with India was sunk near Sri Lanka. Commentators summarized the moment cleanly — Modi had put India firmly in the Israel–US camp — while critics at home called it a strategic surrender. Among India’s BRICS and SCO partners, Russia, China, and Iran above all, the tilt bred real distrust.
What turned India back was oil. India imports roughly 85 percent of its fuel and draws a large share of its crude and LNG through the Strait of Hormuz. Under the 50 percent US tariff wall — half of it levied explicitly to punish Russian-crude purchases — New Delhi had spent early 2026 trimming Russian imports and leaning on Gulf suppliers, a quiet alignment with Washington. The Iran war detonated that arrangement: Hormuz disruption tightened supply, prices surged, the rupee came under pressure, and Modi was reduced to urging citizens to conserve fuel. With Gulf barrels suddenly unreliable and Washington’s tariffs making the alignment costly anyway, India turned back to discounted Russian crude out of straightforward energy necessity. As one analysis put it, the energy shock reordered India’s alignments — the tilt toward Washington of a few weeks earlier giving way to a familiar, interest-driven return to Moscow.
Modi was working two constituencies at once, and they pulled opposite ways. The influential Indian-American diaspora he has assiduously courted aligns comfortably with a pro-US, pro-Israel posture; against it stood the roughly ten million Indians in the Gulf and a domestic opinion for whom the image of India embracing Israel mid-war became a live political liability the opposition worked hard. Energy security and the Gulf-and-domestic pull won.
Seen against that arc, the Bishkek signature is the visible completion of a U-turn. The declaration made India condemn the strikes it had refused to condemn in February and mourn the supreme leader it had refused to mourn. The signature therefore reads less as conversion than as correction — an interest-driven snap back to the multi-aligned center after a six-month experiment in the Israel–US camp proved too expensive.
This is where strategic autonomy, not alignment, becomes the only coherent description, and the distinction matters for anyone tempted to call the SCO a consolidated anti-US front. India will lean toward Washington and Jerusalem when the terms are right and swing back toward Moscow and the Global South when its energy and standing require it, bending each forum to its own positions rather than adopting anyone’s line. Modi spent the Bishkek summit proving the point even as he signed the consensus: he demanded an end to “double standards” on terrorism in language every observer read as aimed at Pakistan, then sitting at the same table and about to take the SCO chair; he insisted connectivity projects respect sovereignty and territorial integrity, India’s standing refusal to bless China’s Belt and Road and the corridor it runs through territory India claims; and he pressed Putin directly to move from endless war toward a cessation of hostilities in Ukraine rather than echo Moscow.
And the timing is not incidental. India hosts the 18th BRICS summit in New Delhi on September 12–13 — ten days after Bishkek — as BRICS chair for 2026, with Putin confirmed and Xi and Pezeshkian expected. A chair cannot antagonize the leaders it is about to receive, so part of the Bishkek signature is simply the housekeeping of a host keeping its room intact before its own showcase. Yet India deliberately themed its BRICS presidency around resilience and cooperation — a framing chosen to keep the focus on delivery rather than confrontation. The tell is in the gap: India signed a confrontational SCO text while steering its own BRICS summit deliberately away from confrontation. The New Delhi declaration on September 13 will be the better test of where India actually stands, and whether the correction that began at Bishkek holds.
The energy weight behind the declaration
A bloc’s communiqué is worth as much as the material power behind it, and on oil the SCO’s ten members carry more weight than the “regional talking shop” framing suggests. Taken together, and using the most recent 2026 figures, the member states produce on the order of 21 to 23 million barrels per day of crude and condensate — roughly a fifth of world output. Set against OPEC’s crude production of about 27 to 28 million barrels per day, the SCO membership produces somewhere near 80 percent of what the entire OPEC cartel pumps.
SCO member Crude + condensate (approx., 2026) Russia ~10.9 million bbl/d China ~4.3–5.0 million bbl/d Iran ~3.3 million bbl/d (war-depressed) Kazakhstan ~1.8 million bbl/d India ~0.7 million bbl/d Others (Uzbekistan, etc.) ~0.2 million bbl/d SCO total ~21–23 million bbl/d
Four caveats sharpen rather than soften the picture. First, Iran sits in both camps — it is the only country that is both an SCO member and an OPEC member — so the two blocs are not cleanly separable; strip Iran out to avoid double-counting and the SCO membership still produces roughly two-thirds of OPEC’s volume. Second, Russia alone, at nearly 11 million barrels per day, produces about 40 percent as much as all of OPEC combined and is the gravitational center of the SCO’s energy weight. Third, the figures are unusually soft this year because the war has curtailed Iranian output and repeatedly throttled Gulf flows through Hormuz — crude and liquids transiting the strait fell from about 21.6 million barrels per day before the conflict to under 5 million in the second quarter of 2026 — so actual regional production has swung well below capacity. Fourth, and most telling, several of OPEC’s Gulf heavyweights — Saudi Arabia, the UAE, Qatar, Kuwait — are not SCO members but SCO dialogue partners, drawn into the organization’s orbit since 2023. The bloc that just defended Iran and condemned the US-Iran war is steadily accreting the very Gulf producers on whom OPEC depends.
The deeper asymmetry is that OPEC is a supply cartel, while the SCO spans both ends of the oil market. Its members include not only Russia, Iran, and Kazakhstan on the production side but China and India — the world’s largest and third-largest crude importers — on the demand side. No other grouping contains both the sellers and the biggest buyers of oil under one roof, and the declaration’s commitments to an SCO energy cooperation strategy to 2030, a proposed SCO Energy Consortium, and expanded settlement in national currencies are early scaffolding for exactly that: a producer-consumer bloc that could, over time, price and clear a meaningful share of Eurasian energy trade outside the dollar and outside OPEC’s writ. That ambition is nowhere near realized. But it is the material fact that gives an anniversary communiqué more heft than its boilerplate would suggest.
The Bishkek Declaration is, on its face, a predictable statement of Eurasian grievance: condemn the strikes on Iran, defend Iran’s nuclear rights, reject Western sanctions, call for a multipolar order. What lifts it above boilerplate is the combination of the signatory and the substance behind it. India signed a text that condemns the very strikes on Iran it pointedly declined to condemn in February, when Modi was in the Knesset — not because it has changed sides, but because a six-month tilt toward Israel and Washington collided with an energy shock and a tariff wall, and snapping back to the multi-aligned center became the rational course. The anti-coercion language now shields India too, and a BRICS summit India must host in ten days makes keeping the room intact its own necessity. And the bloc doing the signing controls something close to four-fifths of OPEC’s oil output, both of Asia’s giant import markets, and a growing roster of Gulf dialogue partners. The declaration’s rhetoric is cheap. The energy and demographic weight standing behind it is not.
Belgium blocks latest EU push to seize Russian assets
RT | September 2, 2026
Belgium has rejected an attempt by Sweden, Poland, Spain, and the Netherlands to resurrect the EU’s plan to seize frozen Russian assets to finance Ukraine.
“This is non-negotiable,” Defense Minister Theo Francken told VRT on the weekend. “That door is closed.”
Kiev’s Western backers froze around $300 billion in Russian central bank assets following the escalation of the Ukraine conflict in 2022, around $240 billion of which is held at Belgium-based Euroclear. The EU has already redirected profits generated by the funds to Kiev but has stopped short of confiscating the underlying assets.
Ukraine has warned of a €30 billion hole in its defense budget, despite receiving the first tranche of a €90 billion loan from Brussels.
Sweden, Poland, Spain, and the Netherlands urged the European Commission last week to once again explore ways of using the frozen Russian assets for Ukraine, while spreading the legal and financial risks among EU member states.
Belgium, which would bear much of the fallout because Euroclear holds the bulk of the assets, opposes confiscation. Francken said Prime Minister Bart De Wever will not change course and warned other EU members, particularly the Baltic states, against repeatedly putting Belgium “in a corner.”
“Our prime minister will stand firm,” he said.
De Wever has argued that outright confiscation would cross a dangerous legal and political line. “You cannot simply take someone else’s money. We are not at war with Russia. Europe is not at war with Russia,” he said earlier this year, adding that “immobilized money, even during WWII, was never confiscated.”
The Belgian prime minister warned that seizing the funds would amount to a declaration of war against Russia, and urged the EU to pursue negotiations instead.
De Wever was also instrumental in blocking an earlier proposal to use the assets as backing for a ‘reparations loan’ to Ukraine. EU members ultimately agreed on a €90 billion loan financed through joint borrowing.
Euroclear also opposes confiscation and warned that it could sue the EU if it attempts to seize the assets. Other EU officials have raised concerns that the move could undermine international law and damage the bloc’s reputation among global investors.
Moscow has denounced any attempt to appropriate its sovereign assets, calling it “theft” and warning that confiscation would trigger retaliation, potentially including measures against Western assets held in Russia.
EU surrenders sovereignty to US coercion, becomes accessory to economic terrorism: Iran FM spokesman
Press TV – August 31, 2026
The European Union has surrendered its sovereignty, laws, values and ethics to American coercion and turned itself into an accessory to Washington’s lawless economic war against Iran, Foreign Ministry spokesman Esmaeil Baghaei has said.
In a statement posted on his official X account on Monday night, Baghaei pointed to the EU’s own Blocking Statute, which prohibits European operators from complying with extraterritorial laws of third countries and treats such measures as contrary to international law.
“How, then, can the Union now support the most predatory and unlawful unilateral coercive measures against Iran?” he asked.
Baghaei contrasted today’s posture with 1996, when the EU resolved to act independently in defense of its sovereignty against the American sanctions regime and adopted the Blocking Statute.
“Today it has become an accessory to Washington’s lawless conduct,” he said.
The Union’s endorsement of America’s unlawful economic war constitutes a grave violation of international law, the spokesman added. Every EU member state will be held accountable for the consequences of its contribution to this wrongful act.
“The European Union cannot endorse Washington’s economic terrorism against Iran while claiming to seek de-escalation and regional stability. The two positions are mutually exclusive,” Baghaei stated. “This irresponsible stance is evidence of the EU’s moral decay and political incompetence.”
Iranian officials have repeatedly described US secondary sanctions and naval blockade measures as economic terrorism and a violation of the UN Charter’s principles of sovereign equality.
Tehran has long maintained that Europe’s failure to enforce its own Blocking Statute against Washington’s extraterritorial dictates exposes the gap between Brussels’ rhetoric on a rules-based order and its actual conduct.
The statement comes as the Islamic Republic continues to reject any attempt to impose terms of settlement through coercion and insists that the only viable path out of the current crisis is a return by the United States to the commitments it signed in the Islamabad Memorandum of Understanding.
The Islamabad MoU, brokered with Pakistani mediation and signed in June, provided for an immediate halt to military operations, the lifting of the US naval blockade, Iranian arrangements for the Strait of Hormuz, a path toward sanctions relief, and a $300 billion reconstruction framework.
However, the US violated the deal by conducting deadly aerial assaults on Iran and imposing a naval blockade of the country.
Pakistan had previously played a pivotal role in securing the April 8 ceasefire that brought an end to the 40-day criminal US-Israeli aggression against Iran.
