Middle East Conflict News
LAST UPDATE: May 28, 2025
Israel Holds Rates as Inflation Spikes, Gaza War Escalates
The Bank of Israel maintains its base interest rate at 4.5% amid rising inflation and ongoing conflict in Gaza.
Insight
Israel’s decision to hold interest rates reflects a cautious approach to monetary policy in the face of geopolitical instability and inflationary pressures. The central bank must navigate the complexities of supporting economic growth while containing inflation, all within a context of military conflict that affects consumer confidence and investment. The situation underscores the intricate link between security issues and economic policy, highlighting the need for adaptive strategies to maintain financial stability.
Israel strikes Gaza as PM vows to bring hostages home
Israeli Prime Minister Benjamin Netanyahu vowed to retrieve all hostages, “living and dead,” as Israeli airstrikes in Gaza reportedly killed at least 52 people.
Insight
Netanyahu’s statement underscores Israel’s commitment to recovering hostages taken by Hamas during the October 2023 attacks. The intensified military operations have led to significant civilian casualties, drawing international criticism and raising concerns about the proportionality of Israel’s response. The ongoing conflict exacerbates the humanitarian crisis in Gaza and complicates efforts toward a ceasefire.
Israel’s actions in Gaza ‘can no longer be justified’, says Germany’s Merz
German Chancellor Friedrich Merz criticized Israel’s military actions in Gaza, stating they can no longer be justified as counter-terrorism, given the high civilian toll.
Insight
Merz’s remarks signify a notable shift in Germany’s traditionally strong support for Israel, reflecting growing discomfort with the humanitarian impact of the Gaza offensive. While Germany reaffirms Israel’s right to self-defense, it emphasizes adherence to international humanitarian law. This stance may influence broader European perspectives and diplomatic engagements concerning the conflict.
Gaza humanitarian group begins distribution of food aid in Gaza
The U.S.-backed Gaza Humanitarian Foundation (GHF) commenced food aid distribution in Gaza amid skepticism from Palestinians and criticism from international organizations.
Insight
The GHF’s operations aim to address the dire humanitarian needs in Gaza but face challenges regarding perceived neutrality and effectiveness. Concerns about biometric data collection and the bypassing of established aid channels have led to distrust among locals and condemnation from entities like the UN. The situation highlights the complexities of delivering aid in conflict zones where political and security considerations intersect.
US envoy denies Hamas has agreed to his Gaza deal
U.S. envoy Steve Witkoff denied claims that Hamas agreed to a proposed ceasefire deal involving a 70-day truce and hostage releases.
Insight
The conflicting statements between Hamas and U.S. officials regarding ceasefire agreements reflect the deep mistrust and communication gaps among the parties. Such discrepancies hinder progress toward a sustainable ceasefire and underscore the need for transparent and direct negotiations. The situation remains volatile, with continued hostilities exacerbating the humanitarian crisis.
