AFP

Delta results show strong demand but also cost pressures

Shares of Delta Air Lines tumbled Wednesday as swelling costs pressured quarterly earnings, despite persistently robust demand that so far appears resilient amid inflation. 

The big US carrier reported solid second-quarter operating earnings and said it is on track for “meaningful full year profitability,” a markedly better outlook after the bruising pandemic downturn.

But the results missed analyst expectations, prompting analyst questions about when Delta expects to get costs under control and stabilize operations.

Besides a 41 percent jump in fuel costs compared with the 2019 period, the airline saw increases in labor costs, in part because of elevated overtime pay as it contends with an industry-wide labor crunch that will take time to address.

“The issues we’re facing are temporary,” said Chief Executive Ed Bastian, alluding to a six-week stretch in the just-finished quarter plagued by flight cancellations and delays.

Bastian said operational performance had improved in July after the carrier built in more buffer time for crews between flights 

Delta has also trimmed its plans for near-term growth. It projects third-quarter capacity will be down 15 to 17 percent compared with the 2019 level.

Executives said cost pressures should ease in the second half of the year as Delta puts off growth plans and focuses on improving operations. 

Part of the issue is the onboarding of some 18,000 new staff members since the pandemic. 

Bastian said the carrier had done a good job of hiring people, but that there is a learning curve with new employees that should abate as staff gets experience.

Profits for the quarter were $735 million on $13.8 billion in revenues. That translated into $1.44 per share, below the $1.64 expected by analysts.

Delta’s earnings were released shortly before the June US consumer price index report, which showed a 9.1 percent jump over the last 12 years. Inflation will pinch household disposable income, especially for the less wealthy.

Delta executives insisted they were seeing no erosion in ticket purchases, citing “pent-up demand” after the pandemic.

“We’re not seeing it,” Delta President Glen Hauenstein said of a potential decline. “As of now, we’re enjoying very robust spend.”

Shares fell 6.6 percent to $29.02 in late-morning trading.

Western Europe wilts under heatwave

France suffered soaring temperatures Wednesday, edging closer to the blistering heat already engulfing Spain and Portugal as wildfires destroyed vast stretches of Western European forestland.

Large parts of the Iberian Peninsula have seen temperatures surpassing 40 degrees Celsius (104 degrees Fahrenheit) this week.

In southwestern France a wildfire raging since Tuesday had ripped through 1,000 hectares (2,500 acres) of pine trees just south of Bordeaux by Wednesday, forcing the evacuation of 150 people from their homes.

Near the Dune of Pilat — Europe’s tallest sand dune — another fire consumed about 700 hectares of old pine trees, authorities said.

Regional prefect Fabienne Buccio told reporters the fires were spread out over five kilometres (three miles), fuelled by dried-out vegetation. 

About 6,000 campers near the dune were evacuated overnight.

“I’ve worked here since 1988 and I’ve never seen anything like it,” said Corinne Hardoin who manages the “Flots Bleus” campsite next to the Pilat dune.

Further inland, 500 people were evacuated around the French village of Guillos as their homes came under threat from advancing fire.

– ‘It was scary’ –

“There were flames in the top of the trees 30 metres high,” mayor Mylene Doreau told AFP. “We could see them moving towards the village, it was scary.”

Some 600 firefighters have been battling the blazes in the region, aided by waterbomber aircraft.

Some cities, including Toulouse and Lourdes, have made changes to Thursday’s Bastille Day celebrations to limit the risk of accidental fire. Nimes simply cancelled the traditional fireworks altogether.

The prefect of the Paris region, meanwhile, cut the speed limit on motorways and expressways to limit air pollution.

Spectators at the annual Tour de France, which is currently crossing the French Alps, put on a brave face as they watched the competitors negotiate some of the bike race’s most difficult climbs in the blazing sunshine.

“It’s absolutely worth it,” said Frances Carr, a 48-year old Australian. “We’ve come a long way to see this, it’s marvellous.”

French student Jean Gosselin, 18, felt mostly for the Tour riders: “They really feel the heat. I’m just standing here watching.”

– ‘Expect it to worsen’ –

Heatwaves have become more frequent due to climate change, scientists say.

The last one to hit France, Portugal and Spain happened only last month.

“We do expect it to worsen,” World Meteorological Organization spokeswoman Clare Nullis said Tuesday.

Last week an avalanche triggered by the collapse of the largest glacier in the Italian Alps — due to unusually warm temperatures — killed 11 people.

The high temperatures are expected to spread to other parts of western and central Europe in the coming days.

Britain issued an “amber” alert — the second highest of three levels — which indicates that the extreme heat will have a “high impact” on daily life and people.

A UK climate official said there was a growing chance of a new UK record, beating Britain’s highest temperature recorded on July 25, 2019 at 38.7C at Cambridge Botanic Garden, in eastern England.

In Spain highs of up to 44C are expected in Guadalquivir valley in Seville in the south in coming days.

Spain’s health ministry said people should drink plenty of fluids, wear light clothes and stay in the shade or air-conditioned rooms to avoid their “vital functions” being affected.

– ‘A bit oppressive’ –

The Aemet meteorological agency said parts of Spain were “suffocating”, especially Andalusia in the south, Extremadura in the southwest and Galicia in the northwest.

Those areas were placed on high alert, and travel was not advised “unless strictly necessary”.

Between January 1 and July 3, more than 70,300 hectares of forest went up in smoke in Spain, the government said — almost double the average of the last ten years.

Authorities in Portugal said one person had died in forest fires, after a body was found in a burned area in the northern region of Aveiro. 

The whole country is under a “situation of alert” for wildfires that have raged for days and are forecast to go on until at least Friday.

Portugal was expecting two water-dropping planes from Italy Wednesday, and two more from France later to help battle the flames, the civil protection agency said. 

“Portugal is experiencing a period of maximum risk of fires, and unfortunately on many fronts,” tweeted Prime Minister Antonio Costa.

The situation is stirring memories of devastating wildfires in 2017, which claimed the lives of over 100 people in Portugal.

In Greece meanwhile, a firefighting helicopter helping to fight a forest blaze on the island of Samos Wednesday crashed into the Aegean Sea with at least three people on board, said the fire service.

A rescue operation was underway, they added.

burs-jh/jj

Russia and Ukraine address grain crisis in first talks since March

Russia and Ukraine on Wednesday held their first direct negotiations since March in a bid to break an impasse over grain exports that has seen food prices soar and millions face hunger.

The high-stakes meeting involving UN and Turkish officials in Istanbul broke up after slightly more than three hours without any immediate signs on a breakthrough.

The Turkish defence ministry issued a one-statement sentence saying the talks had “ended” and offering no hint as to whether progress had been achieved.

But the stakes could not be higher for tens of millions of people facing the threat of starvation in African and other poorest nations because of the battles engulfing one of the main grain producing regions of the world.

Ukrainian officials said at least five people died in Russian shelling on the region surrounding the Black Sea port city of Mykolaiv.

“You never get used to war. It’s dreadful and scary,” 60-year-old Lyubov Mozhayeva said in the partially destroyed frontline city of Bakhmut.

Ukraine is a vital exporter of wheat and grains such as barley and maize. It has also supplied nearly half of all the sunflower oil traded on global markets.

But shipments across the Black Sea have been blocked by Russian warships and mines Kyiv has laid to avert a feared amphibious assault.

– Russian proposals –

The Istanbul negotiations are being complicated by growing suspicions that Russia is trying to export grain it has stolen from Ukrainian farmers in regions under its control.

Russia authorities in Ukraine’s southern region of Kherson on Wednesday countered with accusations that Kyiv’s forces were deliberately burning crops and mining fields.

US space agency data released last week showed 22 percent of Ukraine’s farmland falling under Russian control since the February 24 invasion.

The two sides entered the talks saying that a deal was close but some contentious issues remained.

Ukrainian Foreign Minister Dmytro Kuleba said Kyiv was “two steps from an agreement with Russia”.

Russian defence ministry spokesman Igor Konashenkov said Moscow had “submitted a package of proposals for the speediest practical solution” of the crisis.

Russia said on Tuesday its requirements included the right to “search the ships to avoid the contraband of weapons” — a demand rejected by Kyiv.

– Grain corridors –

NATO member Turkey has been using its good relations with both the Kremlin and Kyiv to try and broker an agreement on a safe way to deliver the grain.

Turkey says it has 20 merchant ships waiting in the region that could be quickly loaded and sent to world markets.

A plan by the UN proposes the ships follow safe “corridors” that run between the known location of mines.

Kyiv has also asked that its vessels be accompanied by warships from a friendly country such as Turkey.

Experts say de-mining the Black Sea is a complex operation that could take months — too long to address the growing global food crisis.

Kuleba said he did not think Moscow actually wanted to reach an agreement because proceeds from grain sales would help support a Western-backed government in Kyiv that the Kremlin brands as “Nazis”.

“They know that if we start to export, we will get proceeds from world markets, and this will make us stronger,” Kuleba said.

– ‘Operational pause’ –

The talks in Istanbul precede a meeting in Tehran next Tuesday between Turkish President Recep Tayyip Erdogan and his Russian counterpart Vladimir Putin.

Erdogan’s ultimate goal is to bring Putin and Ukrainian President Volodymyr Zelensky down to Istanbul for talks aimed at pausing the fighting and launching formal peace talks.

But the Ukrainian army warned this week that Russia was preparing to stage its heaviest attack yet on the Donetsk region — the larger of the two areas comprising the Donbas war zone.

The Russian army has not conducted any major ground offensives since taking the last points of Ukrainian resistance in the war zone’s smaller Lugansk region at the start of the month.

Analysts believe the Russians are taking an “operational pause” during which they are rearming and regrouping forces before launching an assault on Sloviansk and Kramatorsk — Ukraine’s administrative centre for the east.

Ukraine is trying to counter the Russians by staging increasingly potent attacks with new US and European rocket systems targeting arms depots.

US officials believe the Russians are trying to recoup their losses by negotiating to acquire hundreds of combat drones from Iran.

ESA fully cuts Mars mission ties with Russia, angering Moscow

The European Space Agency has officially terminated cooperation with Russia on a mission to put a rover on Mars, with Russia’s space chief furiously responding by banning cosmonauts on the ISS from using a Europe-made robotic arm.

The ESA had previously suspended ties on the joint ExoMars mission, which had planned to use Russian rockets to put Europe’s Rosalind Franklin rover on the red planet to drill for signs of life, due to Russia’s invasion of Ukraine.

ESA Director-General Josef Aschbacher tweeted on Tuesday that because the war and resulting sanctions “continue to prevail”, the agency would “officially terminate” ties with Russia on ExoMars and its landing platform.

The firebrand head of Russian space agency Roscosmos Dmitry Rogozin issued an angry response.

“Has the head of the European Space Agency thought about the work of thousands of scientists and engineers in Europe and Russia which has been ended by this decision? Is he prepared to answer for sabotaging a joint Mars mission?” Rogozin said on Telegram.

“I, in turn, order our crew on the ISS to stop working with the European manipulator ERA,” he added.

Installed just a few months ago, the European Robotic Arm (ERA) is one of three such robots on the International Space Station, but it is the only one that can reach the Russian segment.

The 11-metre long robot, which looks like a pair of compasses, helps by moving payloads inside and outside the ISS, and can also transport spacewalkers “like a cherry-picker crane,” according to the ESA website.

The ExoMars launch had already been suspended once in 2020 due to the pandemic, then plans for a launch in September this year were called off due to the war in March.

Aschbacher said last month he is in “intense discussion” with US space agency NASA to get the rover to Mars, adding that he was “very confident that we find a good partnership”.

ESA fully cuts Mars mission ties with Russia, angering Moscow

The European Space Agency has officially terminated cooperation with Russia on a mission to put a rover on Mars, with Russia’s space chief furiously responding by banning cosmonauts on the ISS from using a Europe-made robotic arm.

The ESA had previously suspended ties on the joint ExoMars mission, which had planned to use Russian rockets to put Europe’s Rosalind Franklin rover on the red planet to drill for signs of life, due to Russia’s invasion of Ukraine.

ESA Director-General Josef Aschbacher tweeted on Tuesday that because the war and resulting sanctions “continue to prevail”, the agency would “officially terminate” ties with Russia on ExoMars and its landing platform.

The firebrand head of Russian space agency Roscosmos Dmitry Rogozin issued an angry response.

“Has the head of the European Space Agency thought about the work of thousands of scientists and engineers in Europe and Russia which has been ended by this decision? Is he prepared to answer for sabotaging a joint Mars mission?” Rogozin said on Telegram.

“I, in turn, order our crew on the ISS to stop working with the European manipulator ERA,” he added.

Installed just a few months ago, the European Robotic Arm (ERA) is one of three such robots on the International Space Station, but it is the only one that can reach the Russian segment.

The 11-metre long robot, which looks like a pair of compasses, helps by moving payloads inside and outside the ISS, and can also transport spacewalkers “like a cherry-picker crane,” according to the ESA website.

The ExoMars launch had already been suspended once in 2020 due to the pandemic, then plans for a launch in September this year were called off due to the war in March.

Aschbacher said last month he is in “intense discussion” with US space agency NASA to get the rover to Mars, adding that he was “very confident that we find a good partnership”.

US consumer prices surge to new 40-year high of 9.1%

US inflation surged to a fresh peak of 9.1 percent in June, further squeezing American families and heaping pressure on President Joe Biden, whose approval ratings have taken a battering from the relentless rise in prices. 

Government data released Wednesday showed a sharp, faster-than-expected increase in the consumer price index compared to May driven by significant increases in gasoline prices.

The 9.1 percent CPI spike over the past 12 months to June was the fastest increase since November 1981, the Labor Department reported.

Energy contributed half of the monthly increase, as gasoline jumped 11.2 percent last month and a staggering 59.9 percent over the past year. Overall energy prices posted their biggest annual increase since April 1980.

While acknowledging the inflation rate was “unacceptably high,” Biden argued that it was also “out of date” as it did not reflect a clear drop in energy prices since mid-June.

The recent price drop had provided “important breathing room for American families. And, other commodities like wheat have fallen sharply since this report,” the president said in a statement.

Insisting that tackling inflation was the top priority, Biden admitted his administration needed “to make more progress, more quickly, in getting price increases under control.”

The war in Ukraine has pushed global energy and food prices higher, and US gas prices at the pump last month hit a record of more than $5 a gallon. 

However, energy prices have eased in recent weeks, which could start to relieve some of the pressure on consumers.

But the Federal Reserve is likely to continue its aggressive interest rate increases as it tries to tamp down the price surge by cooling demand before inflation becomes entrenched.

The US central bank last month implemented the biggest rate hike in nearly 30 years, and economists say another three-quarter-point increase is likely later this month.

Ian Shepherdson of Pantheon Macroeconomics summed up the data in one word: “Ouch.” 

“This report will make for very uncomfortable reading at the Fed,” he said. “It rules out the chance of the Fed hiking by only 50bp this month.”

– Signs of cooling? –

Driven by record-high gasoline prices, the consumer price index jumped 1.3 percent in June.

But Shepherdson noted some signs of cooling prices in the data and predicted “this will be the last big increase.”

When volatile food and energy prices are stripped out of the calculation, “core” CPI increased 5.9 percent over the past year — still a rapid pace but slowing from the pace in May, according to the data. 

Food and housing prices also rose in June, as did car prices, though the rate has stabilized or slowed from the past month, the report said.

The White House came out ahead of the report to predict it would show “highly elevated” inflation. 

But press secretary Karine Jean-Pierre noted that the “backwards looking inflation data” does not take into account recent declines in gasoline prices.

According to AAA, the national average price at the pump was down to $4.63 a gallon, from $5.01 a month ago.

US consumer prices surge to new 40-year high of 9.1%

US inflation surged to a fresh peak of 9.1 percent in June, further squeezing American families and heaping pressure on President Joe Biden, whose approval ratings have taken a battering from the relentless rise in prices. 

Government data released Wednesday showed a sharp, faster-than-expected increase in the consumer price index compared to May driven by significant increases in gasoline prices.

The 9.1 percent CPI spike over the past 12 months to June was the fastest increase since November 1981, the Labor Department reported.

Energy contributed half of the monthly increase, as gasoline jumped 11.2 percent last month and a staggering 59.9 percent over the past year. Overall energy prices posted their biggest annual increase since April 1980.

While acknowledging the inflation rate was “unacceptably high,” Biden argued that it was also “out of date” as it did not reflect a clear drop in energy prices since mid-June.

The recent price drop had provided “important breathing room for American families. And, other commodities like wheat have fallen sharply since this report,” the president said in a statement.

Insisting that tackling inflation was the top priority, Biden admitted his administration needed “to make more progress, more quickly, in getting price increases under control.”

The war in Ukraine has pushed global energy and food prices higher, and US gas prices at the pump last month hit a record of more than $5 a gallon. 

However, energy prices have eased in recent weeks, which could start to relieve some of the pressure on consumers.

But the Federal Reserve is likely to continue its aggressive interest rate increases as it tries to tamp down the price surge by cooling demand before inflation becomes entrenched.

The US central bank last month implemented the biggest rate hike in nearly 30 years, and economists say another three-quarter-point increase is likely later this month.

Ian Shepherdson of Pantheon Macroeconomics summed up the data in one word: “Ouch.” 

“This report will make for very uncomfortable reading at the Fed,” he said. “It rules out the chance of the Fed hiking by only 50bp this month.”

– Signs of cooling? –

Driven by record-high gasoline prices, the consumer price index jumped 1.3 percent in June.

But Shepherdson noted some signs of cooling prices in the data and predicted “this will be the last big increase.”

When volatile food and energy prices are stripped out of the calculation, “core” CPI increased 5.9 percent over the past year — still a rapid pace but slowing from the pace in May, according to the data. 

Food and housing prices also rose in June, as did car prices, though the rate has stabilized or slowed from the past month, the report said.

The White House came out ahead of the report to predict it would show “highly elevated” inflation. 

But press secretary Karine Jean-Pierre noted that the “backwards looking inflation data” does not take into account recent declines in gasoline prices.

According to AAA, the national average price at the pump was down to $4.63 a gallon, from $5.01 a month ago.

Stocks tumble, euro dips below $1.00 on US inflation data

Global stocks fell Wednesday and the euro dipped below $1.00 for the first time in nearly 20 years after data showed a surge in US inflation last month, convincing investors that further increases in borrowing costs are on their way. 

Stock prices on Wall Street fell at the open after a pick-up in US inflation to 9.1 percent in June increased the risk of a possible recession.

European stock markets were also sharply lower by mid-afternoon, with London’s blue-chip FTSE-100 index down 0.7 percent, Frankfurt’s DAX down 1.4 percent and Paris’s CAC-40 down 1.1 percent. 

The euro fell below the symbolic level of $1.00 for the first time since December 2002, dipping as low as $.0998, as the prospect of higher interest rates rendered the dollar more attractive to investors.

The economic prospects for the 19-country eurozone are also darkening as a possible halt to Russian gas supplies increases the risk of recession. 

– Inflation tops 9% – 

US inflation surged to a 40-year high in June on a 12-month basis, much worse than expected, US Labor Department data showed.

“The inflation reading has blown past all expectations today and there is no doubt now that the (Federal Reserve) will be even more aggressive,” said Naeem Aslam, analyst at Avatrade.

“Inflation at 9.1 pecent makes you sick as a consumer and as a central banker.” 

Markets fear the reading will prompt the Fed to keep hiking interest rates aggressively after it ramped up borrowing costs by three-quarters of a percentage point last month.

Consumer prices are soaring worldwide after economies reopened from pandemic lockdowns and as the Ukraine war keeps energy prices elevated.

In a further sign of the pressure being felt around the world, the New Zealand and South Korean central banks each lifted interest rates by 0.5 percentage points Wednesday.

It was the steepest increase by Seoul since 1999.

– Europe gas crisis –

The euro briefly fell below parity to the dollar as a worsening energy crisis fans expectations for a recession in the single currency area. But the unit quickly moved back above the $1.00 mark.

With Russian energy giant Gazprom starting 10 days of maintenance Monday on its Nord Stream 1 pipeline, the bloc — and particularly gas-reliant Germany — is waiting nervously to see if the taps are turned back on.

The single currency has been hit also by the European Central Bank’s reluctance to raise rates — in contrast to monetary policy elsewhere.

“A prolonged cut to the gas supply would halt a lot of economic activity, sending (Germany) deep into recession,” said Tapas Strickland at National Australia Bank.

He said July 21 — when the gas should be switched back on — will be a crucial date.

“That date also happens to be the day of the next ECB meeting,” Strickland added. 

“Either of these events are key risk events. Russia playing gas politics by not switching on the gas supply would likely see the euro lurch much lower.”

– Key figures at around 1345 GMT –

New York – Dow: DOWN 0.8 percent at 30,737.57 points

London – FTSE 100: DOWN 0.7 percent at 7,159.99

Frankfurt – DAX: DOWN 1.4 percent at 12,728.88

Paris – CAC 40: DOWN 1.1 percent at 5,978.65

EURO STOXX 50: DOWN 1.3 percent at 3,441.67

Tokyo – Nikkei 225: UP 0.5 percent at 26,478.77 (close)

Hong Kong – Hang Seng Index: DOWN 0.2 percent at 20,797.95 (close)

Shanghai – Composite: UP 0.1 percent at 3,284.29 (close)

Euro/dollar: DOWN at $1.0024 from $1.0037 Tuesday

Pound/dollar: UP at $1.1873 from $1.1889 

Euro/pound: UP at 84.42 pence from 84.40 pence

Dollar/yen: UP at 137.55 yen from 136.84 yen

West Texas Intermediate: UP 0.7 percent at $96.54 per barrel

Brent North Sea crude: UP 0.2 percent at $99.71 per barrel

burs-spm/cdw

Biden visits Israel on first Middle East tour as US president

US President Joe Biden on Wednesday kicked off a Middle East tour in Israel where both sides vowed to deepen the Jewish state’s integration in the region as they face their common foe Iran.

Biden — whose first regional tour since taking office will also take him to Saudi Arabia — pledged strong backing for Israel, which has forged ties with several Arab states in recent years and hopes to do so with Riyadh as well.

“We’ll continue to advance Israel’s integration into the region,” Biden said after Air Force One touched down at Ben Gurion airport near Tel Aviv to a red-carpet welcome.

Israel’s caretaker prime minister Yair Lapid said that “we will discuss building a new security and economy architecture with the nations of the Middle East”, following US-brokered accords in 2020 with the UAE, Bahrain and Morocco.

“And we will discuss the need to renew a strong global coalition that will stop the Iranian nuclear programme,” he added, amid ongoing efforts by world powers to salvage Iran’s frayed 2015 nuclear deal, which Israel opposes.

Biden’s visit to Saudi Arabia on Friday will be the major focus of the tour, after he branded the oil-rich kingdom a “pariah” over the 2018 murder of dissident Saudi journalist Jamal Khashoggi.

The trip is seen as part of efforts to stabilise oil markets rattled by the war in Ukraine, by re-engaging with a long-time key US strategic ally and major energy supplier.

Air Force One will make a first direct flight from Israel to Saudi Arabia amid efforts to build ties between the Jewish state and the conservative Gulf kingdom, which does not recognise Israel’s existence.

– Palestinian anger –

Moments after Biden landed, Israel’s military was to show him its new Iron Beam system, an anti-drone laser it claims is crucial to countering Iran’s fleet of unmanned aerial vehicles.

Israel insists it will do whatever is necessary to thwart Iran’s nuclear ambitions, and remains staunchly opposed to a restoration of the 2015 deal that gave Tehran sanctions relief.

Iran’s President Ebrahim Raisi warned earlier Wednesday that if Biden’s goal on the trip was to bolster Israel’s security, he was destined to fail.

If US visits “to the countries of the region are to strengthen the position of the Zionist regime… their efforts will not create security for the Zionists in any way,” Raisi said, referring to Israel.

Israel has raised 1,000 flags across Jerusalem to welcome the US leader, who has not reversed former president Donald Trump’s controversial decision to recognise the city as the capital of the Jewish state.

Biden, 79, will also meet Palestinian leaders angered by what they describe as Washington’s failure to curb Israeli aggression.

The persistent frustrations of Israeli-Palestinian diplomacy are nothing new for Biden, who first visited the region in 1973 after being elected to the Senate.

Palestinians claim Israeli-annexed east Jerusalem as their capital and, ahead of the visit, accused Biden of failing to make good on his pledge to restore the United States as an honest broker in the conflict.

– Jerusalem to Bethlehem –

“We only hear empty words and no results,” said Jibril Rajoub, a leader of the secular Fatah movement of Palestinian president Mahmud Abbas.

Biden will meet Abbas in the occupied West Bank city of Bethlehem on Friday, but there is no expectation of bold announcements toward a fresh peace process.

Israel for now is again mired in political gridlock ahead of a November 1 parliamentary election, the fifth in less than four years.

Biden is scheduled to have a short meeting Thursday with Israel’s former prime minister Benjamin Netanyahu, who will try to reclaim power in the upcoming polls.

US-Palestinian ties have been strained by the May killing of Al Jazeera reporter Shireen Abu Akleh while she was covering an Israeli army raid in the West Bank.

The United Nations has concluded the Palestinian-American journalist was killed by Israeli fire. Washington has agreed this was likely, but also said there was no evidence the killing was intentional.

Abu Akleh’s family has voiced outrage over the Biden administration’s “abject response” to her death, and the White House has not commented on their request to meet the president in Jerusalem.

Biden’s National Security Advisor Jake Sullivan said Wednesday that Secretary of State Antony Blinken “has invited the family to the United States to be able to sit down and engage with him directly”. 

aue-gl/bs/fz/lg

Biden lands in Israel on first Middle East tour as US president

US President Joe Biden started a Middle East tour on Wednesday in Israel, where leaders will urge tougher action against their common foe Iran, before a delicate stop in oil-rich Saudi Arabia. 

Biden’s visit to Jeddah on Friday will be the focus of the tour, after he branded Saudi Arabia a “pariah” over the 2018 murder of dissident Saudi journalist Jamal Khashoggi.

Air Force One will make a first direct flight from Israel to Saudi Arabia amid efforts to forge a relationship between the Jewish state and the conservative Gulf kingdom that does not recognise Israel’s existence.

Before that, Biden, 79, will meet Israeli leaders seeking to broaden cooperation against Iran, and Palestinian leaders angered by what they describe as Washington’s failure to curb Israeli aggression.

The persistent frustrations of Israeli-Palestinian diplomacy are nothing new for Biden, who first visited the region in 1973 after being elected to the Senate.

Israel and Iran were allies then, but they are now sworn enemies that have been engaged in a “shadow war” of attacks and sabotage.

Israel’s caretaker prime minister, Yair Lapid, who greeted Biden at the airport, has said talks “will focus first and foremost on the issue of Iran”.

Iran’s President Ebrahim Raisi warned that if Biden’s goal on the trip was to bolster Israel’s security, he was destined to fail.

“If the visits of the American officials to the countries of the region are to strengthen the position of the Zionist regime… their efforts will not create security for the Zionists in any way,” Raisi said, referring to Israel.

– Jerusalem to Bethlehem –

Moments after Biden landed, Israel’s military was to show him its new Iron Beam system, an anti-drone laser it claims is crucial to countering Iran’s fleet of unmanned aerial vehicles.

Israel insists it will do whatever is necessary to thwart Iran’s nuclear ambitions, and is staunchly opposed to a restoration of the frayed 2015 deal that gave Tehran sanctions relief.

Israeli police fanned out across central Jerusalem on Wednesday, with major roads closed as Air Force One touched down.

Israel has raised 1,000 flags across Jerusalem to welcome the US leader, who has not reversed former president Donald Trump’s controversial decision to recognise the city as the capital of the Jewish state.

Palestinians claim Israeli-annexed east Jerusalem as their capital and, ahead of the visit, accused Biden of failing to make good on his pledge to restore the US as an honest broker in the conflict.

“We only hear empty words and no results,” said Jibril Rajoub, a leader of the secular Fatah movement of Palestinian president Mahmud Abbas.

Biden will meet Abbas in the occupied West Bank city of Bethlehem on Friday, but there is no expectation of bold announcements toward a fresh peace process, meaning the visit could end up deepening Palestinian frustration.

Israel for now is again mired in political gridlock ahead of a November 1 parliamentary election, the fifth in less than four years.

Biden is scheduled to have a short meeting Thursday with Israel’s former prime minister Benjamin Netanyahu, who will try to reclaim power in the upcoming polls.

– Normalisation steps?  –

US-Palestinian ties have been strained by the May killing of Al Jazeera reporter Shireen Abu Akleh while she was covering an Israeli army raid in the West Bank.

The United Nations has concluded the Palestinian-American journalist was killed by Israeli fire. Washington has agreed this was likely, but also said there was no evidence the killing was intentional.

Abu Akleh’s family has voiced outrage over the Biden administration’s “abject response” to her death, and the White House has not commented on their request to meet the president in Jerusalem.

Biden’s National Security Advisor Jake Sullivan said Wednesday that Secretary of State Antony Blinken “has invited the family to the United States to be able to sit down and engage with him directly”. 

Biden’s trip to Saudi Arabia is seen as part of efforts to stabilise oil markets rattled by the war in Ukraine, by re-engaging with a long-time US key strategic ally and major energy supplier.

Israel hopes the visit will also signal the start of a process toward building diplomatic ties with Saudi Arabia.

Israel expanded its regional reach with US backing in 2020, when it formalised ties with the United Arab Emirates, Bahrain and Morocco — breakthroughs that came after its peace accord with Egypt in 1979 and Jordan in 1994.

While there is no expectation of Saudi Arabia recognising the Jewish state in the immediate future, a senior Israeli official said Tuesday that Biden’s visit marked an important step toward that goal.

Close Bitnami banner
Bitnami