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Lebanon is balanced as though on an earthquake faultline right now – whatever Israel decides to do next will have massive repercussions throughout the entire region.

That’s how critical the situation is in Lebanon and the surrounding countries, as described by one seasoned Lebanese political analyst.

Khodor Taleb is also the former adviser to three different Lebanese prime ministers, so knows a thing or two about what is at stake.

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Lebanon – like the entire region – is at the crossroads and it is Israel in the driving seat over which road is travelled.

‘The situation will be totally out of control’

“I can tell you 100% that Hezbollah do not want war. The ball is in the Israeli court,” Mr Taleb told Sky News.

The militant group Hezbollah is backed by Iran and has strong ties with both the Iranian leadership and the Islamic Revolutionary Guards Corps (IRGC).

It is very much seen as the strongest and most powerful of Iran’s proxies which operate in multiple countries.

It is therefore potentially in the Israeli crosshairs as it considers how or whether to retaliate against Iran and its network in response to the missile and drone attacks at the weekend.

Mr Taleb is not an isolated voice in warning that an Israeli attack could tip the region into all-out war.

“It will be a huge risk for Israel because it will lead to a big war in the region,” he said.

“It will not be limited to Lebanon. It will definitely spread to Yemen and most probably to the Syrian Golan and the situation will be totally out of control of any international power,” he continued.

“It will be damaging to the whole region.”

His point: Any large-scale Israeli attack against the Lebanese Hezbollah or Iran risks drawing the entire so-called Axis of Resistance into war – and that would involve the Yemeni Houthis, the Iraqi Hezbollah and the various Syrian militias – all of which have links to Iran or Hezbollah.

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‘Revenge will end up with a bigger war’

While Foreign Secretary Lord Cameron was in Israel urging restraint, his Lebanese counterpart was telling us how he is willing him on to succeed.

“I hope the foreign ministers in Tel Aviv or in Jerusalem, wherever they are, they succeed with them [and persuade them not to retaliate]… to take it easy, and not to start a war with Iranians,” Abdullah Bou Habib told Sky News.

“And they started it,” he added. “They were hitting Iran in many Syrian areas and Iran was not retaliating but now after you hit its consulate, you can’t stop them.”

Lebanon's foreign minister Abdullah Bou Habib - From Alex Crawford
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Lebanon’s foreign minister Abdullah Bou Habib

Mr Habib issued his own dire warnings to try to avert a potentially disastrous attack by Israel.

“Any kind of revenge from Israel is going to end up with a bigger war,” he said.

He blamed the inaction by the United Nations (UN) for not definitively condemning the earlier suspected Israeli attack on the Iranian consulate in Damascus – viewed as the first direct assault by Israel against Iran in more than six months of war in Gaza.

“We are very worried,” the Lebanese foreign minister said.

“We pray for a ceasefire but the UN is not moving in this direction and we are left not able to do anything.”

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Comparing Israel and Iran’s weapons

Asked whether, like Hezbollah, the Lebanese government welcomed the Iranian drone and missile attack against Israel, he responded: “We don’t welcome it nor do we denounce it.

“We are in a very difficult position because Israel started it. We really want peace – 90% of Lebanese really want peace.”

When questioned about just how much influence the Lebanese government has over Hezbollah, which has a powerful military wing believed to be stronger than the Lebanese army plus a political wing including elected MPs, the foreign minister was brutally frank.

“We don’t have influence with them [Hezbollah] in fighting over Israelis,” he admitted. “And when that happens, we support Hezbollah.”

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But he went on to focus on the nub of the issue: “And other countries… Syria, Jordan… also have problems because of what Israel is doing.

“The UN asked for a two-state solution in 1947, a long time ago, and this is the solution for all the problems in the Middle East.”

Without a two-state solution, he predicted, the Palestinians will never stop fighting.

‘Help us’

In Beirut’s Shatila refugee camp, which is filled with tens of thousands of Palestinians displaced from previous wars with Israel, there is not so much fear of retaliation as frustration at what they view as Western double standards.

Shantila in Beirut
Image:
Shatila refugee camp in Beirut

Many mentioned to us the lack of Western condemnation of the direct attack on diplomatic soil at the Iranian consulate in the Syrian capital – widely accepted to be the work of Israel, though the IDF has never confirmed its responsibility.

“Let them respond,” said political activist Ahed Bahar, referring to an Israeli response to Iran’s attack.

“The Israelis are only a tool of the Americans and take their orders from the US, UK and France,” he said.

Political activist Ahed Bahar
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Activist Ahed Bahar

The upheaval and high number of casualties in Gaza – caused by Israel’s response to Hamas’s attacks on Israel on 7 October – has drawn together not just Sunnis and Shi’ites in Lebanon but also many of the fractured political parties.

Kazem Hasan, the Palestine Liberation Organisation (PLO) chief in the camp, urged the British people to put more pressure on the UK government to help Palestinians.

“I tell to Britain that the struggle [in Gaza] isn’t against terrorism. It’s about Palestinian rights. We need our own state. Put right what you did wrong so many years ago and help us now.”

 PLO chief in the camp, Kazem Hasan
Image:
PLO politician Kazem Hasan

Lebanon is waiting on tenterhooks to see what unfolds over the coming hours, days and weeks.

Additional reporting from cameraman Jake Britton, specialist producer Chris Cunningham and Lebanon producer Jihad Jneid.

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Stock markets slump for second day running after Trump announces tariffs – in worst day for indexes since COVID

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Stock markets slump for second day running after Trump announces tariffs - in worst day for indexes since COVID

Worldwide stock markets have plummeted for the second day running as the fallout from Donald Trump’s global tariffs continues.

While European and Asian markets suffered notable falls, American indexes were the worst hit, with Wall Street closing to a sea of red on Friday following Thursday’s rout – the worst day in US markets since the COVID-19 pandemic.

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All three of the US’s major indexes were down by more than 5% at market close; The Dow Jones Industrial Average plummeted 5.5%, the S&P 500 was 5.97% lower, and the Nasdaq Composite slipped 5.82%.

The Nasdaq was also 22% below its record-high set in December, which indicates a bear market.

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Ever since the US president announced the tariffs on Wednesday evening, analysts estimate that around $4.9trn (£3.8trn) has been wiped off the value of the global stock market.

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Mr Trump has remained unapologetic as the markets struggle, posting in all-caps on Truth Social before the markets closed that “only the weak will fail”.

The UK’s leading stock market, the FTSE 100, also suffered its worst daily drop in more than five years, closing 4.95% down, a level not seen since March 2020.

And the Japanese exchange Nikkei 225 dropped by 2.75% at end of trading, down 20% from its recent peak in July last year.

Pic: Reuters
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US indexes had the worst day of trading since the COVID-19 pandemic. Pic: Reuters

Trump holds trade deal talks – reports

It comes as a source told CNN that Mr Trump has been in discussions with Vietnamese, Indian and Israeli representatives to negotiate bespoke trade deals that could alleviate proposed tariffs on those countries before a deadline next week.

The source told the US broadcaster the talks were being held in advance of the reciprocal levies going into effect next week.

Vietnam faced one of the highest reciprocal tariffs announced by the US president this week, with 46% rates on imports. Israeli imports face a 17% rate, and Indian goods will be subject to 26% tariffs.

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Do Trump’s tariffs add up?

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China – hit with 34% tariffs on imported goods – has also announced it will issue its own levy of the same rate on US imports.

Mr Trump said China “played it wrong” and “panicked – the one thing they cannot afford to do” in another all-caps Truth Social post earlier on Friday.

Later, on Air Force One, the US president told reporters that “the beauty” of the tariffs is that they allow for negotiations, referencing talks with Chinese company ByteDance on the sale of social media app TikTok.

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He said: “We have a situation with TikTok where China will probably say, ‘We’ll approve a deal, but will you do something on the tariffs?’

“The tariffs give us great power to negotiate. They always have.”

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Financial markets were always going to respond to Trump tariffs but they’re also battling with another problem

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Financial markets were always going to respond to Trump tariffs but they're also battling with another problem

Global financial markets gave a clear vote of no-confidence in President Trump’s economic policy.

The damage it will do is obvious: costs for companies will rise, hitting their earnings.

The consequences will ripple throughout the global economy, with economists now raising their expectations for a recession, not only in the US, but across the world.

Tariffs latest: FTSE 100 suffers biggest daily drop since COVID

Financial investors had been gradually re-calibrating their expectations of Donald Trump over the past few months.

Hopes that his actions may not match his rhetoric were dashed on Wednesday as he imposed sweeping tariffs on the US’ trading partners, ratcheting up protectionism to a level not seen in more than a century.

Markets were always going to respond to that but they are also battling with another problem: the lack of certainty when it comes to Trump.

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He is a capricious figure and we can only guess his next move. Will he row back? How far is he willing to negotiate and offer concessions?

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These are massive unknowns, which are piled on to uncertainty about how countries will respond.

China has already retaliated and Europe has indicated it will go further.

That will compound the problems for the global economy and undoubtedly send shivers through the markets.

Much is yet to be determined, but if there’s one thing markets hate, it’s uncertainty.

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Court confirms sacking of South Korean president who declared martial law

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Court confirms sacking of South Korean president who declared martial law

South Korea’s constitutional court has confirmed the dismissal of President Yoon Suk Yeol, who was impeached in December after declaring martial law.

His decision to send troops onto the streets led to the country’s worst political crisis in decades.

The court ruled to uphold the impeachment saying the conservative leader “violated his duty as commander-in-chief by mobilising troops” when he declared martial law.

The president was also said to have taken actions “beyond the powers provided in the constitution”.

Demonstrators who stayed overnight near the constitutional court wait for the start of a rally calling for the president to step down. Pic: AP
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Demonstrators stayed overnight near the constitutional court. Pic: AP

Supporters and opponents of the president gathered in their thousands in central Seoul as they awaited the ruling.

The 64-year-old shocked MPs, the public and international allies in early December when he declared martial law, meaning all existing laws regarding civilians were suspended in place of military law.

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The Constitutional Court is under heavy police security guard ahead of the announcement of the impeachment trial. Pic: AP
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The court was under heavy police security guard ahead of the announcement. Pic: AP

After suddenly declaring martial law, Mr Yoon sent hundreds of soldiers and police officers to the National Assembly.

He has argued that he sought to maintain order, but some senior military and police officers sent there have told hearings and investigators that Mr Yoon ordered them to drag out politicians to prevent an assembly vote on his decree.

His presidential powers were suspended when the opposition-dominated assembly voted to impeach him on 14 December, accusing him of rebellion.

The unanimous verdict to uphold parliament’s impeachment and remove Mr Yoon from office required the support of at least six of the court’s eight justices.

South Korea must hold a national election within two months to find a new leader.

Lee Jae-myung, leader of the main liberal opposition Democratic Party, is the early favourite to become the country’s next president, according to surveys.

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