Southeast Asia

A recent statement from the European Union Foreign Policy Commissioner, Josep Borrell, urging Israel's allies, notably Washington, to cease supplying weapons to Israel has ignited widespread controversy. This call comes amid heightened concerns over the significant civilian deaths in the Gaza Strip. Coinciding with this plea, a Dutch appeals court decision has prohibited the export of all spare parts for F-35 fighter jets destined for Israel. These developments unfold against the backdrop of Israel's plans to initiate an expanded military operation in Rafah. Such an operation raises the spectre of a potential humanitarian catastrophe, particularly concerning the over 1.3 million displaced individuals from the Gaza Strip who have sought refuge in Rafah since the commencement of military activities in the enclave.   The United States provides Israel with annual military aid worth $3.8 billion, which stands as one of the most substantial military aid packages supplied by the U.S. to any country globally. This commitment was reaffirmed by U.S. officials, including President Joseph Biden, who, during his tenure as Vice President under Barack Obama, emphasised the enduring strategic alliance between the two countries. Then Vice President Biden said the U.S. commitment to Israel transcends moral obligations and is a deeply rooted strategic obligation. During a visit to Tel Aviv amid the events of Oct. 7, he underscored that “the existence of an independent and secure Israel within globally recognised borders aligns with the practical strategic interests of the United States.” He further emphasised, “I have long said: If Israel didn't exist, we would have to invent it.” Evidence of the depth of relations and continued support is further demonstrated by Congress' approval of an additional $14.1 billion in military aid to Israel. This aid is intended to bolster Israel's capabilities in its conflict with the Hamas movement, specifically by providing air and missile defence support and replenishing U.S. military stock granted to Israel. This level of support echoes the assistance provided by the United States to Israel during the October 1973 War with the Egyptian Army.   The generous and unconditional support provided by the U.S. to Israel prompts numerous inquiries, particularly in the context of the U.S.'s inability to exert pressure on Israel to stop its war on Gaza. Additionally, its loss of control over the right-wing government's decision-making process regarding the potential expansion of the war to include Rafah, portending an imminent conflict with Egypt. Hence, this analysis endeavours to address a pivotal question: Will these developments prompt a shift in the U.S. stance toward Prime Minister Benjamin Netanyahu and his right-wing government, potentially leading to a withdrawal from the notion of an expanded operation in Rafah? Furthermore, can the United States feasibly cease its military aid to this strategic ally in the Middle East?

In February 2023, the European Union (EU) agreed to set a price cap on Russian refined oil products at $100 per barrel. The EU also set the price cap on Russian crude oil at $45 after setting it at $60 per barrel in cooperation with the Group of Seven (G7) countries in early December 2022, according to a periodic review every two months.   The European decision aims to control energy prices generally and stop price fluctuations that have affected global markets since the Covid-19 pandemic and the following events, particularly the commodity supercycle and the Russian-Ukrainian war. Furthermore, the Europeans aim to cut off the funding sources from the Russian federal budget that funds the military operation in Ukraine. In 2021, Russia exported oil worth around $212.4 billion of its $492.3 billion total exports to the rest of the world.   In response, the Russian government issued a decree on December 28, 2022, prohibiting the export of crude oil and petroleum products to countries with imposed price caps. Europe is the third-largest oil importer in the world after China and the United States. Conversely, Russia ranks first on the list of suppliers to the European continent while ranking second worldwide regarding oil exports. Therefore, we track in this article how the price cap decision may alter the global energy transmission paths.