MENA RegionalPULSE: 03 JUN 2025

Report Summary

• Gaza faces unprecedented humanitarian collapse, with the UN declaring it the “hungriest place on Earth.” Israeli restrictions continue to obstruct aid, while deadly incidents near distribution hubs are fueling international condemnation and heightening reputational risk for Israel.
• The EU has launched a formal review of its Association Agreement with Israel, citing potential human rights violations in Gaza. This marks a significant diplomatic shift with possible trade and political implications for EU-Israel relations.
• In Lebanon, the LAF reportedly regained 80% control of southern territory, with partial cooperation from Hezbollah following the November 2024 ceasefire. However, Israeli airstrikes persist, undermining fragile stability and delaying reconstruction efforts.
• Iraq’s federal government has filed a legal case against the Kurdistan Regional Government (KRG) over unauthorized gas contracts with U.S. firms. The lawsuit highlights deepening internal governance disputes over energy sovereignty and federal oversight.
• Morocco suffered a major cyberattack by the Algerian-linked group “Jabaroot,” which exfiltrated sensitive data from the land registry. This breach highlights growing cyber threats tied to regional political rivalries.
• Libya’s eastern-based government may declare force majeure on oil infrastructure, citing attacks on the National Oil Corporation. The move could disrupt production and worsen institutional fragmentation amid ongoing protests in Tripoli.
• Saudi Arabia’s non-oil private sector continued to expand in May, reflecting strong domestic demand and improved market sentiment, as evidenced by a rising Purchasing Managers’ Index.
• Kuwait announced multiple public-private energy initiatives to tackle electricity shortages, representing a model for resilient infrastructure investment in the Gulf amid demographic and environmental pressures.
• Omani-mediated efforts yielded a temporary ceasefire in Yemen, leading the U.S. to halt airstrikes on Ansar Allah. However, low-level clashes continue, and a lasting political settlement remains elusive.
• Syria saw a significant shift in EU policy, with the formal lifting of economic sanctions (excluding security-related ones) to support post-Assad transition and reconstruction. Border crossings have reopened, improving mobility with Lebanon.