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Netanyahu Rejects Hostage Deal, Orders 60,000 Reservists Despite Warnings

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THE EARLY PHOENIX

September 2, 2025|13:30 EST|20:30 LEVANT

ISRAEL

  1. Netanyahu Rejects Hostage Deal, Orders 60,000 Reservists Despite Warnings

In a stormy cabinet meeting, IDF Chief Maj. Gen. Eyal Zamir urged accepting Hamas’s offer to release ten hostages and 18 remains for a 60-day ceasefire, warning Gaza’s conquest would force full occupation without an exit plan. Netanyahu refused debate, citing Trump’s opposition to partial deals. Far-right ministers branded Zamir cowardly, while hostage families accused Netanyahu of sacrificing captives. Trump warned Israel “may be winning the war” but “not winning in public relations,” citing eroded support in Congress and U.S. youth. He backed Israel’s Gaza City offensive but pressed for a swift end. Despite objections, Netanyahu approved mobilizing 60,000 reservists for Gaza operations, defying military and security warnings.

  1. IDF Destroys Five Miles of Hamas Tunnels in Khan Yunis

Israeli forces killed dozens of Hamas fighters and destroyed five miles of tunnels in Khan Yunis, including infrastructure tied to October 7. The Kfir and Golani Brigades dismantled weapons caches and secured the Magen Oz Corridor. Strikes in Jabalia prepared the way for Gaza City operations, one of Hamas’s remaining strongholds.

  1. Netanyahu Weighs West Bank Annexation as Hebron Mayor Arrested

Israeli forces arrested Hebron Mayor Tayseer Abu Sneineh in a dawn raid, part of a broader West Bank crackdown. At the same time, Netanyahu prepared talks on annexation after France and others recognized Palestine. Options include applying sovereignty to settlements or parts of the Jordan Valley. Such moves risk Arab backlash and Western condemnation.

  1. Israeli Media Reports Türkiye Preparing for Possible War With Israel

Israeli outlet i24 reported Türkiye is building nationwide shelters and upgrading air defenses for a potential confrontation with Israel. Erdogan recently transferred the “Steel Dome” system to the Defense Ministry, while intelligence officials urged citywide shelter preparations. Analysts cited by i24 said Ankara sees Israel as a direct rival and expects no U.S. protection in conflict.

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IRAN

  1. Iran Ticks Down Enrichment to 3.67 Percent After Sanctions Pressure

Under snapback pressure from Britain, France, and Germany, Iran offered to reduce enrichment to 3.67 percent, the JCPOA limit. This is a rollback from its recent 60 percent enrichment, which produced over 408 kilograms of near weapons-grade uranium. The offer hinges on guaranteed enrichment rights and comes as Tehran denounced European moves as driven by Washington and Israel. Iran also voiced mistrust of IAEA inspectors and alleged data leaks to Israel, though this claim remains unverified. Russia and China denounced the European move as unlawful, pledging to shield Iran at the Security Council.

  1. Iran Accelerates Nuclear Site Cleanup After Strikes, Erasing Evidence

A nuclear research group reported Iran demolishing sections of the Mojdeh complex in northern Tehran after Israeli airstrikes, erasing evidence of weapons-related activity. Satellite imagery showed multiple facilities razed, including sites tied to the Institute of Applied Physics and the U.S.-sanctioned Shahid Karimi Group. The IAEA is pressing Tehran to restore access and inspections at Fordow, Natanz, and Isfahan as cleanup continues. The rapid demolition suggests deliberate concealment, complicating international verification of Iran’s military nuclear work.

  1. United States Ignores Iranian Overtures As Snapback Sanctions Deadline Nears

Iran disclosed Washington ignored at least 15 messages seeking renewed nuclear talks as the EU triggered the snapback mechanism to restore sanctions. The U.S. now demands zero enrichment on Iranian soil, a condition Tehran rejects following Israeli strikes in June. President Trump said he is in “no rush to talk because we obliterated their site.” On August 24, Supreme Leader Khamenei ruled out direct negotiations, framing hostility with the U.S. as permanent and unsolvable.

  1. Iran Proposes SCO Payment Network to Undermine Dollar, Evade Sanctions

At the SCO summit in Tianjin, President Masoud Pezeshkian urged members to bypass the U.S. dollar using national currencies, a digital trading platform, and a swap fund. The proposal seeks to shield members from Western sanctions and deepen Iran’s economic integration with Russia, China, and regional allies. Tehran tied the initiative to broader anti-Western messaging as the SCO condemned U.S.–Israeli strikes on Iran and criticized Europe’s snapback sanctions mechanism. The strategy underscores Iran’s drive to erode U.S. financial dominance.

  1. Iran Masks Oil Shipments As Iraqi Crude To Evade Sanctions

Chinese customs data revealed Iran disguises 100,000 barrels of oil daily as Iraqi exports, worth $2.5 billion annually. Methods include forged shipping documents and AIS spoofing. The maneuver shifts political and compliance risks onto Iraq, Oman, and Malaysia, complicating U.S. enforcement and straining global energy market credibility. Iran’s deception reflects its reliance on covert exports to sustain revenue under U.S. sanctions, highlighting enforcement challenges for Washington and risks to regional partners.

  1. Iran Pursues $4.3 Billion Energy Projects Despite Western Sanctions

Iran announced plans to activate 28 energy projects worth €3.7 billion to bolster oil and gas production. Managed by the National Iranian Oil Company, key developments include the Khartang gas field, Tous expansion, and Abuzar pipeline. The investment highlights Tehran’s strategy to sustain revenue flows and resist U.S. pressure on its energy sector. Despite sanctions, Iran is reinforcing long-term energy resilience, signaling determination to secure strategic revenue streams critical for regime survival.

  1. Iran And Türkiye Discuss Syria, Gaza, Iraq At SCO Summit

At the September 1 SCO summit in Tianjin, Iranian President Masoud Pezeshkian and Turkish President Recep Tayyip Erdoğan discussed Iran’s nuclear program and regional conflicts. Pezeshkian pledged diplomacy but criticized IAEA oversight, while Erdoğan backed continued talks. On Gaza, Pezeshkian praised UN criticism of Israeli strikes, urging tougher measures, while Erdoğan denounced Europe’s sanctions on Iran. Both stressed Syria’s unity, voiced concern over Iraq’s instability, and reviewed Armenia-Azerbaijan peace terms. They highlighted energy cooperation, signaling closer coordination as regional balances shift following Assad’s fall.

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TÜRKIYE

  1. Türkiye Strengthens Air Defenses in the Face of a Possible Confrontation with Israel

Türkiye bolstered its defenses against a potential clash with Israel by upgrading air systems, fortifying the home front, and building nuclear shelters. President Erdoğan announced the delivery of the $500 million “Steel Dome” system, developed over seven years by Aselsan, integrating Korkut, Hisar, and Siper systems with advanced radar and electronic warfare capabilities.

  1. Türkiye’s Economy Expands 4.8% in Q2, Beating Forecasts

Türkiye’s economy grew 4.8% year-on-year in Q2 2025, surpassing the 3.87% forecast, with GDP reaching 14.62 trillion lira ($377.6B). Growth was driven by strong consumption, investment, and industry, though agriculture contracted 3.5%. Finance Minister Mehmet Şimşek said Türkiye is nearing high-income status and will soon unveil its 2026–28 medium-term program.

  1. Erdogan Tells Putin Turkiye Defends Syria’s Unity, Criticizes Israel

At the SCO Summit in Tianjin on September 1, Erdogan told Putin Turkiye will resist threats to Syria’s unity, casting unrest as a direct threat to Turkish security. He underscored Ankara’s role as guarantor of the new government in Damascus and criticized Israeli strikes on Gaza. Erdogan’s remarks signaled cooperation with Moscow and reinforced Turkiye’s alignment with Syria’s interim leadership, positioning Ankara as both defender of Syrian sovereignty and opponent of destabilizing external interventions.

  1. Erdogan Condemns U.S. Revoking Palestinian Delegation’s UN Visas

President Erdogan denounced Washington’s decision to revoke visas for Palestinian officials, including Mahmoud Abbas, ahead of the UN General Assembly. He called the move “contrary to the UN’s purpose” and said it “only pleases Israel.” Erdogan demanded reversal and urged U.S. condemnation of Israeli actions in Gaza. Washington defended its decision, citing the PA’s failure to denounce extremism and its push for unilateral recognition.

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YEMEN

  1. Houthis Launch Missiles Over Saudi, Drone Intercepted Near Israel

On September 2, Houthis fired two ballistic missiles that disintegrated midair over Saudi Arabia before reaching Israeli territory, causing no damage or casualties. Later the same day, the Israeli Air Force intercepted a Houthi drone before it entered Israel; no sirens were triggered under IDF policy. On September 1, Houthis launched a missile at the Liberian-flagged tanker Scarlet Ray in the Red Sea, owned by an Israeli firm, but it missed; the ship and crew were unharmed.

  1. Israeli Strike Kills Houthi Cabinet, Sparks Funeral and Retaliation Threats

On August 28, Israel’s “Operation Lucky Drop” killed Houthi Prime Minister Ahmad al-Rahawi and senior ministers in Sanaa, eliminating the group’s top political leadership. Mass funerals drew thousands on September 1, where chants vowed revenge. New premier Mohammed Miftah pledged support for Gaza and promised retaliation, including threats against Israeli targets.

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SUDAN

  1. Landslide Obliterates Sudanese Village, One Survivor, Thousand Dead

A catastrophic landslide on August 31 devastated the village of Tarasin in Sudan’s Jebel Marra (Marrah Mountains), killing over 1,000 inhabitants and leaving just one survivor, according to the Sudan Liberation Movement. The UN cited confirmed deaths exceeding 300 but noted significant uncertainty due to rugged terrain and poor weather. Relief efforts are hindered by conflict, blocked access, and communication outages.

EGYPT

  1. Egypt Troop Deployment Near Gaza Overshoots Treaty Limit

Egypt has deployed approximately 40,000 troops, along with armor and air defense systems, to the Sinai border adjacent to Gaza. This deployment exceeds limits set by the 1979 Egypt–Israel peace treaty. Egyptian officials state the buildup is defensive and aligned with Israel’s military authorities, aiming to block mass Palestinian displacement into Sinai as operations continue in Gaza.

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SYRIA

  1. IAEA Finds Processed Uranium at Syrian Site Bombed 2007

The IAEA reported detecting a large number of natural uranium particles of anthropogenic origin—chemically processed—at a site tied to the Deir ez-Zor facility destroyed by Israel in 2007. The agency previously confirmed the building was most likely a covert nuclear reactor. The uranium was not enriched, but its discovery in recent samples confirms undeclared nuclear-related material existed in Syria. Inspectors plan further sampling at Deir ez-Zor to verify the scope of Syria’s past nuclear activity.

  1. U.S. Coalition Raid in Deir Ezzor Detains Civilians

On September 2, U.S.-led coalition forces and the SDF launched an airborne raid in Al-Shuhail, eastern Deir Ezzor. Several civilians were detained and later released, while targeted individuals linked to the new Syrian government evaded capture. Local reporting offered no confirmed identities of the regime-linked individuals who evaded capture and residents denied ISIS presence in the area. The operation follows recent coalition raids in Idlib and Aleppo that eliminated senior ISIS leaders. 

  1. ISIS Suicide Attack Hits SDF Post in Raqqa Countryside

On August 31, a suspected ISIS cell carried out a suicide attack on an SDF position in northern Raqqa, killing two attackers and injuring three fighters. The same day, SDF forces detained 51 people in Hasakah, claiming ISIS links, though activists accused them of arresting civilians. 

  1. Syria Exports Leftover Crude Linked to Qatirji, BB Energy

Damascus shipped 600,000 barrels of leftover crude, unusable in the Homs or Baniyas refineries, long stockpiled in Tartous. Some of the oil is tied to Hussam al-Qatirji, who previously smuggled it abroad and partnered with the Assad regime to move crude from SDF areas to regime-controlled refineries. The shipment was handled through B Serv Energy, a subsidiary of Lebanese-British trader BB Energy, aboard the Greek-flagged tanker Nissos Christiana. AIS shows the vessel marked “FOR ORDERS,” concealing its destination. While Arabic media called it historic, the export simply liquidates residual stock collected for years. Qatirji, also linked to corrupt wheat, quarry, and tourism contracts—sectors long riddled with corruption during Assad’s rule—has now reemerged with influence.

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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.

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