★IRAN
Iran’s Energy Collapse Deepens As Shutdowns Trigger Mass Layoffs
One week after 23 provinces shut down due to power and water shortages, Iran’s infrastructure crisis has spiraled into mass layoffs and business closures. Blackouts and water cuts now paralyze factories, gyms, farms, and offices. A dairy farm in Isfahan laid off 20 workers after power outages slashed output. In Tehran, packaging plants and service firms are downsizing as operations stall. Families rely on rooftop tanks or tanker deliveries as taps run dry. The regime’s promise to end blackouts by summer has failed, exposing a structural collapse now devastating Iran’s economy.
Iran Removes Four Zeros From Currency During Economic Collapse
Iran’s parliament approved a Central Bank-backed plan to remove four zeros from its currency as inflation deepens and confidence in the rial collapses. MP Fathallah Tavasoli said the move aims to simplify transactions and restore credibility, but reflects the severity of Iran’s monetary crisis. Central Bank Governor Mohammad Reza Farzin confirmed the measure is part of the 2025 reform plan as the regime struggles to stabilize exchange rates and contain soaring inflation.
Iran Claims Destruction of $19.7 Million U.S. Radar
In response to President Trump’s threat in Scotland to “wipe out” Iran’s nuclear program, Iranian Foreign Minister Abbas Araghchi warned of stronger retaliation and claimed Tehran had already destroyed a $19.7 million U.S. radar dome at Al-Udeid Air Base in Qatar during the June 23 missile strike. He said the attack breached U.S. Patriot defenses and proved that future Iranian responses would be “impossible to cover up.” Araghchi condemned Trump’s demands as bullying and emphasized Iran’s sovereign right to defend itself. He said U.S.–Israeli bombings of Fordow and Natanz failed to damage Iran’s scientific capabilities, as the country’s nuclear expertise is “indigenous and irreversible.”
The Hill: Iran Rakes $3.6 Billion From Sanctions-Evading Oil Exports
Iran exported 1.7 million barrels per day in June, earning $3.6 billion despite U.S. sanctions and Israeli strikes, The Hill reported. Crude exports rose 37% since January, with 92% going to China and 6% to the UAE, mostly via Kharg Island, which remained untouched during the 12-Day War. Analysts blame weak enforcement, a brief sanctions pause, and Chinese–Emirati noncompliance. They urge Washington to escalate pressure by targeting ports, banks, and oil tankers.
Iran Withdraws Media Bill Amid Escalating Crackdown On Journalists
Iran’s government withdrew a harsh “fake news” bill after public backlash, fearing it would criminalize dissent with prison terms up to 15 years. The move follows rising repression: a Tehran-based journalist described arrests, phone inspections, and threats to reporters’ families during the recent war with Israel. He said most Iranians reject both the regime and Israeli strikes, and blamed the nuclear program for deepening economic collapse.
===========
★ SYRIA
Rights Group Says 8,000 Held Without Charges In Post-Assad Syria
Over 8,000 people remain detained without charges or trials in prisons across Idlib, Afrin, Hama, and Harem, eight months after the Assad regime’s fall. Detainees include civilians, doctors, surrendered soldiers, and ex-anti-ISIS fighters, many arrested during mass raids in December 2024. Releases have occurred without legal process or explanation, while most remain held in legal limbo. The Syrian Observatory warns the continued arbitrary detentions mirror past abuses and violate basic humanitarian principles.
Syria’s Dual Killing Waves Expose Post-Assad Security Collapse
Syria’s transitional government has lost control over revenge killings in 2025, threatening U.S. stabilization efforts as sectarian violence spreads across key regions. At least 2,882 people have been killed extrajudicially this year, including 201 children and 194 women. Aleppo recorded 64 targeted assassinations of former regime collaborators. A major spike occurred March 6–10 along the coast, where 803 people—civilians, medics, and ex-regime personnel—were executed in sectarian reprisal killings. Over 1,400 died in coastal violence that month alone. These killings differ from those during Assad’s rule (2011–2024), when the state used mass detention, torture, and executions. Since Assad fled seven months ago, 34 mass graves containing 2,776 bodies have been discovered in homes, fields, wells, and prisons—most victims forcibly disappeared or tortured under the former regime. The transitional government has failed to secure grave sites or pursue investigations, allowing evidence destruction and denying families justice.
Israel Sees Progress in De-escalation Talks with Syria
An Israeli source told Al Arabiya that ongoing Israel–Syria talks in Paris and other capitals are progressing positively, with negotiations centered on disarming southern Syria. No final agreement was reached, but both sides committed to further consultations to reduce tensions and restore communication channels.
Sweida Province Suffers Hidden Siege Despite Partial Corridor Openings
Sweida remained under secret restrictive conditions throughout July, according to UN agencies, the Syrian Observatory for Human Rights, and resident accounts detailing roadblocks, halted aid, and critical shortages. The Syrian Observatory labeled the province “besieged,” while UN sources confirmed constrained humanitarian access and medical collapse. Initial government obstruction allowed only one aid truck, with bakeries shutting down and fuel supplies exhausted. Damascus denied imposing a siege, attributing disruptions to clashes between Druze factions and government-backed Bedouin tribes, which it claims sealed routes and halted commerce. The Interior Ministry admitted to imposing a “security cordon” but accused armed groups of exploiting the crisis to sustain weapons and drug trade. On July 29–30, aid convoys entered via reopened corridors, delivering fuel, flour, and medical supplies, while Civil Defense teams evacuated 250 families to Busra al-Sham. Protests over deteriorating conditions continued as commercial access remains restricted and subject to local faction coordination. The Foreign Ministry urged UN intervention, while residents argue the blockade was deliberate and ongoing.
============
★ISRAEL
Israel To Receive First Two KC-46 Tankers In 2026
Israel will receive its first two U.S.-made KC-46A refuelers in 2026 to replace its aging Re’em fleet under a $930 million deal allowing up to eight aircraft. The tankers, delayed due to structural flaws, are built for long-range missions and can refuel jets at 1,200 gallons per minute. They feature ballistic-protected fuel tanks, IR countermeasures, and night-vision landing systems. Israel may later expand domestic production to offset rising U.S. arms restrictions.
Israel And Hamas Face Dual Crisis Of Regional And U.S. Legitimacy
Public support for Israel’s war in Gaza has collapsed among Americans, with a Gallup poll showing just 32% approval and 60% disapproval—a record low. Democratic support has plummeted to 8%, independents to 25%, while Republican backing rose to 71%. Only 38% of Americans support Israeli strikes on Iran. Prime Minister Netanyahu’s U.S. favorability also hit its lowest point since 1997, with 52% viewing him unfavorably. Simultaneously, Qatar, Saudi Arabia, and Egypt joined 17 nations and the Arab League in demanding Hamas disarm and cede Gaza to the Palestinian Authority, backing a UN-led stabilization force and condemning the October 7 massacre. Leading Arab journalists across Egypt, Saudi Arabia, the UAE, Tunisia, and Palestine have condemned Hamas’s October 7 attack as a reckless, Iran-backed operation that devastated Gaza and violated Islamic values.
============
★ EGYPT/AFRICA
Dispute Between Egypt and UAE Delays Sudan War Talks in Washington
A ministerial meeting on Sudan’s war, scheduled for Tuesday in Washington with the U.S., Saudi Arabia, Egypt, and the UAE, was postponed due to a disagreement between Cairo and Abu Dhabi over the wording of the final statement. Egypt rejected a UAE proposal to exclude both Sudan’s army and RSF from any transitional phase, insisting on preserving Sudanese national institutions, especially the military.
Muslim Brotherhood Reignites Anti-Egypt Campaign Abroad Over Gaza
The Muslim Brotherhood launched coordinated protests at Egyptian embassies in Europe and Arab states, accusing Cairo of blocking Gaza aid. Egypt denied the claims, blaming Israeli control over Rafah’s Palestinian side. Authorities linked the campaign to a broader strategy to discredit Egypt’s mediation role.
Algeria and Italy Sign Major Deals, Stirring French Discontent
President Abdelmadjid Tebboune’s visit to Italy resulted in over 40 bilateral agreements in energy, defense, agriculture, and tech, reinforcing Italy’s role as Algeria’s top global economic partner. The move sparked outrage in France, particularly among far-right circles, amid strained French-Algerian ties and perceptions of growing Italian influence in the Maghreb and EU-Algeria relations.
Border Clashes Between South Sudan and Uganda Leave Casualties
Clashes erupted between Ugandan and South Sudanese forces in Central Equatoria’s Kajo-Keji County, causing deaths, injuries, and mass displacement. South Sudan’s army confirmed a mutual fire exchange and stated that military chiefs from both nations had discussed de-escalation. Thousands fled to schools, churches, and forests. Uganda had earlier deployed special forces into South Sudan, continuing support for President Salva Kiir.
============
★ TÜRKIYE
Türkiye Discovers $4 Billion Worth of New Oil Reserves
Turkish Energy Minister Alparslan Bayraktar announced the discovery of 57 million barrels of onshore oil reserves valued at $4 billion, with ongoing exploration in Diyarbakır, Gabar, and Batman. He also confirmed a May gas find of 75 billion cubic meters in the Black Sea, enough to cover Turkey’s residential gas needs for 4.5 years.
Türkiye Unveils Long-Endurance VTOL Drone for Surveillance Missions
Türkiye’s TAI revealed a new VTOL drone capable of vertical takeoff and landing, designed for modern ISR operations. With a 10-hour flight time, 1300 km range, and 2.5 kg payload, the drone supports rapid deployment without runways. Fueled by combustion engines, it targets both domestic military use and export, enhancing Türkiye’s UAV capabilities in rugged and remote areas.
Türkiye Signs Bogota Declaration on Palestine With UNCLOS Reservation
Türkiye signed the Hague Group’s Bogota Declaration supporting Palestine but reserved its stance on UNCLOS references, citing unresolved Aegean disputes. Ankara clarified its position legally and dismissed claims of public pressure. Türkiye maintains support for Palestine, having cut trade ties with Israel in May 2024 and reaffirmed its commitment to international law and human rights.
Türkiye Arrests 20 in New Istanbul Municipality Corruption Probe Wave
Turkish police arrested 20 suspects, including Istanbul’s transport chief, in a new wave of raids tied to a corruption probe targeting the opposition-led municipality. The arrests follow the detention of Mayor Ekrem İmamoğlu, sparking claims of political motives aimed at sidelining Erdogan’s main rival before the next presidential race.
============
★ IRAQ
Iran Moves to Contain Divisions Among Iraqi Allies Ahead of Elections
Iran’s Quds Force chief Esmail Qaani made a secret 10-hour visit to Baghdad to unite fractious Shiite factions ahead of Iraq’s November elections. He met key Coordination Framework leaders, urging support for Iraq’s government and halting rogue militia attacks—particularly those targeting Western oil assets in Kurdistan. Tehran voiced alarm over Israeli infiltration and warned of retaliatory strikes.
Iraq Finalizes Gas Deal With Turkmenistan To Boost Power
Iraq finalized logistics for importing 15–16 million cubic meters of Turkmen gas daily to offset Iranian supply cuts and boost power output. The agreement supports Prime Minister Sudani’s aim to meet 50% of summer needs via Turkmen gas. Iraq also seeks imports from Kazakhstan and has completed power links with Turkey, Jordan, and the Gulf states.
Iraqi Armed Factions Clash Over Control Of Baghdad Belt
A clash between Iraq’s police and Popular Mobilization Forces exposed armed groups seizing farmlands in Baghdad’s outskirts. Farmers accused militias of land grabs, prompting Prime Minister Sudani to launch an investigation. The U.S. condemned the group involved as “terrorists,” warning of Iran-linked militias under PMF dragging Iraq into confrontation with Washington.
Iraq’s Poverty Rate Drops To 10.8 Percent By 2024
Iraq’s poverty rate fell from 11.4% in 2018 to 10.8% in 2024, according to Planning Minister Mohammed Tamim. Launching the national multidimensional poverty report, he affirmed ongoing government efforts to address poverty and improve living standards. The study, supported by UNDP, uses updated socioeconomic data to guide development policies across provinces.
Asia Takes 80 Percent Share Of Iraqi Oil Exports
Iraq exports 80% of its oil to Asian markets, with daily volumes averaging 3.25–3.5 million barrels under OPEC+ commitments, said SOMO director Ali Nazar. Remaining exports go to Europe and the U.S. Iraq also exports black oil, naphtha, jet fuel, condensates, and LPG, aiming to reach 5.25 million barrels per day by 2028.
Explosive Drone Hits Near Makhmour in Ongoing Kurdistan Attacks
A bomb-laden drone crashed near Dokardakan village in Iraq’s Makhmour district on Wednesday morning without casualties. The incident follows a series of mysterious drone attacks targeting Kurdistan, including strategic sites. Iraqi officials condemned the assaults, vowing accountability. Investigations are underway amid suspicions of Iran-linked militias and growing concerns over regional security and foreign investments.
============
★ LEBANON
Hezbollah Uses Civilian Project To Expand Border Presence
Hezbollah’s “Help Each Other” Association deployed ten mobile structures to nine villages near Israel’s border on July 22, 2025, under its “Beautiful Interiors Project.” According to Israel’s Alma Center, the initiative—operating south of the Litani—is a civilian cover for Hezbollah’s military and intelligence buildup. Some structures are expected to serve as Hezbollah outposts, continuing a pattern similar to the group’s “Green Without Borders” tactic. Meanwhile, the IDF remains in five fortified positions inside southern Lebanon, citing ongoing Hezbollah violations and the absence of civilians. With no withdrawal timeline and deep trenching, both sides are entrenching under the ceasefire’s surface.
============
★ GULF STATES
Mohammed Bin Zayed, UK’s Starmer Discuss Gaza Crisis and Two-State Solution
UAE President Mohammed bin Zayed and UK Prime Minister Keir Starmer discussed Gaza’s humanitarian crisis and Middle East developments in a call on Wednesday. Both stressed urgent ceasefire efforts, unimpeded aid flow, and advancing a two-state solution. Bin Zayed welcomed Britain’s intent to recognize Palestine and affirmed bilateral cooperation rooted in long-standing UAE-UK ties.
UAE Records AED 1.7 Trillion in Non-Oil Trade in Six Months
UAE’s non-oil foreign trade surged 24% year-on-year in H1 2025, reaching AED 1.7 trillion, double the level from five years ago. Growth with key partners included 120% with Switzerland, 41% with Turkey, and 33% with India. Sheikh Mohammed bin Rashid noted this exceeds global trade growth and reflects the UAE’s accelerating economic diversification.
============
★ Disclaimer: The Early Phoenix is a digest of various news sources compiled by the Early Phoenix team and edited by Rania Kisar. The items are curated, concise summaries of news items hyperlinked within each story. The items and summaries presented do not necessarily represent the views of the American Center for Levant Studies.