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Saudi Arabia plans to pay off Syria’s World Bank debts – Reuters

Syria has around $15 million in arrears to the World Bank which must be paid off before the international financial institution can approve grants and provide other forms of assistance.

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Saudi Arabia plans to pay off Syria’s debts to the World Bank, paving the way for the approval of millions of dollars in grants for reconstruction and to support the country’s paralysed public sector, Reuters reported on Monday citing three people familiar with the matter

The plans, which have not been previously reported, would be the first known instance of Saudi Arabia providing financing for Syria since Islamist-led rebels toppled former leader Bashar al-Assad last year.

It may also be a sign that crucial Gulf Arab support for Syria is beginning to materialize after previous plans, including an initiative by Doha to fund salaries, were held up by uncertainty over U.S. sanctions.

Last month, Qatar announced a plan to provide Syria with gas via Jordan to improve the nation’s meagre electricity supply, a move that sources told Reuters had Washington’s nod of approval.

A spokesperson for the Saudi Ministry of Finance told Reuters, “We do not comment on speculation, but make announcements, if and when they become official.”

The Saudi government’s media office, a World Bank spokesperson and a Syrian government official did not immediately respond to requests for comment.

Syria has around $15 million in arrears to the World Bank which must be paid off before the international financial institution can approve grants and provide other forms of assistance.

But Damascus is short of foreign currency and a previous plan to pay off the debts using assets frozen abroad did not materialize, according to two people familiar with the matter.

World Bank officials have discussed providing financing to help reconstruct the country’s power grid, heavily damaged by years of war, and also to support public sector pay, two of the sources said.

Reuters reported on Saturday that Syria would send a high-level delegation to Washington for the yearly spring meetings of the World Bank and IMF later this month, marking the first visit by Syrian officials to the U.S. since Assad’s ouster.

It is unclear whether the Syrian delegation will meet with any U.S. officials.

Tough U.S. sanctions imposed during Assad’s rule remain in place.

In January, the U.S. issued a six-month exemption for some sanctions to encourage humanitarian aid, but this has had limited effect.

Last month the U.S. gave Syria a list of conditions to fulfil in exchange for partial sanctions relief but the administration of U.S. President Donald Trump has otherwise engaged little with the country’s new rulers.

That is in part due to differing views in Washington on how to approach Syria.

Some White House officials have been keen to take a more hard line stance, pointing to the new Syrian leadership’s former ties to Al-Qaeda as reason to keep engagement to a minimum, according to diplomats and U.S. sources.

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Iran defends two-day proposal for peace talks after US rejects conditions

Iran defended a proposal on Monday to restart peace talks in as ​few as two days as the ‌most reasonable offer on the table, after US Secretary of State Marco Rubio called some of ​Iran’s conditions “outrageous and ridiculous”.

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Iran defended a proposal on Monday to restart peace talks in as ​few as two days as the ‌most reasonable offer on the table, after US Secretary of State Marco Rubio called some of ​Iran’s conditions “outrageous and ridiculous”, Reuters reported.

“Is it unreasonable that ​Iran demands that US illegal sanctions ⁠and its naval blockade must be lifted ​before negotiations start and that the war should ​end on all fronts?” Foreign Ministry spokesman Esmaeil Baghaei told a weekly press conference in response to ​Rubio’s remarks.

Iran defended a proposal on Monday to restart peace talks in as ​few as two days as the ‌most reasonable offer on the table, after US Secretary of State Marco Rubio called some of ​Iran’s conditions “outrageous and ridiculous”.

“Is it unreasonable that ​Iran demands that US illegal sanctions ⁠and its naval blockade must be lifted ​before negotiations start and that the war should ​end on all fronts?” Foreign Ministry spokesman Esmaeil Baghaei told a weekly press conference in response to ​Rubio’s remarks.

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Explosions heard in areas in southern Iran, Iranian media report

Earlier on Saturday, Tasnim news agency ‌said ⁠two missiles struck Qeshm Island with no official information on possible damage.

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Explosions were heard on Saturday evening in several areas in southern Iran, including on Qeshm Island in the Strait of Hormuz, Iranian state ​television reported.

Iran’s state TV suggested that the explosions might be linked to ‌Iranian military activities in the strategic waterway, which has become subject to repeated attacks on commercial shipping since the war erupted between the US and Iran in February.

It said Iranian officials have ​not confirmed any missile strikes on the areas, while the semi-official Tasnim news ​agency cited a source as saying that the explosions heard on Qeshm ⁠Island were not related to missile strikes.

Iran’s Revolutionary Guards Navy said early on ​Sunday that two oil tankers were on fire after hitting mines as they attempted to ​pass through an “unauthorized route” in the strait. It was not immediately clear if the incidents referred to by the IRGC were linked to the sound of explosions heard in southern Iranian areas.

Iran has hit ​vessels it says have violated its restrictions on passage through the waterway, as it ​seeks to assert control over the strait and exert pressure on Washington.

Earlier on Saturday, Tasnim news agency ‌said ⁠two missiles struck Qeshm Island with no official information on possible damage.

The reported explosions come days after the US carried out strikes on the island. A US official said those strikes were limited and not a resumption of major combat operations.

The US military said on ​Saturday evening that its ​forces disabled a commercial ⁠vessel that tried to get through the US blockade of Iran.

The US Central Command said one of its aircraft fired at ​the vessel’s stern and disabled the ship after it attempted to ​violate the ⁠blockade.

Countries in the region had been anticipating that US President Donald Trump, who has held off on strikes on Iran during the weeks leading up to Tuesday’s midterm elections, could ⁠restart ​attacks once the voting was over. Iran has repeatedly ​said it would respond to new attacks by striking at US and Israeli targets in neighboring countries.

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Pakistan’s leaders dread US Democrats’ win but its households are praying for it

Pakistan’s courtship of Trump, capped by its mediation in ​the Iran war, earned it a close relationship with his administration. That access has yet to deliver clear economic gains, and congressional scrutiny of Islamabad’s dealings with Trump’s inner ​circle now threatens the rewards its leaders hoped would follow.

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Pakistan’s leaders spent two years courting US President Donald Trump, but after the Democrats’ win in Tuesday’s congressional vote, they are preparing for scrutiny ​of their access to the White House.

Ordinary Pakistanis see the result differently. Many hope the shift in Washington will ease a cost-of-living crisis intensified ‌by the US-Israel war on Iran, Reuters reported.

“We believe meaningful negotiations with the current US administration are not possible, and the ongoing bloodshed will not end until there is a change in [the US] ​government,” Karachi resident Sajjad Ali said.

“We want peace, economic improvement and a reduction in the rising oil prices.”

Asim Zafar, also from Karachi, said he hoped ​the results would rein in Trump. “It could bring changes in important policies and perhaps help prevent some of the injustices being committed ⁠against Muslim countries,” he said.

But for Pakistan’s government and powerful military leadership, analysts say, the outcome is far more worrying.

Pakistan’s courtship of Trump, capped by its mediation in ​the Iran war, earned it a close relationship with his administration. That access has yet to deliver clear economic gains, and congressional scrutiny of Islamabad’s dealings with Trump’s inner ​circle now threatens the rewards its leaders hoped would follow.

A BET ON ONE MAN

The courtship began early in Trump’s second term, with army chief Asim Munir — who Trump has repeatedly described as his “favourite field marshal” — as Islamabad’s main channel to the White House.

Their June 2025 lunch took place unusually without Pakistani civilian officials present, which put the military at the centre of the rapprochement.

According to Pakistan’s military, ​their talks went beyond security to cooperation in mining, energy and cryptocurrency.

Pakistan then joined Trump’s Board of Peace and nominated him for the Nobel Peace Prize, crediting him with ​helping end its May 2025 conflict with India. New Delhi denies US mediation halted hostilities.

Earlier this year, Iran mediation gave the courtship strategic substance: Islamabad relayed messages and hosted April talks between the ‌US and ⁠Iran, but the eventual Islamabad Agreement quickly faltered.

For consumers, Pakistan’s rising diplomatic influence has offered little protection from the war’s costs while the payoff for the state has also been thin. The US Export-Import Bank approved $1.25 billion for Pakistan’s Reko Diq copper and gold project in December 2025. But Pakistan’s signature $10 billion request for a US Treasury facility remains unanswered.

DEALS UNDER SCRUTINY

Pakistan’s outreach, public and private, now carries political risk because several arrangements involve Trump’s family or close associates.

Islamabad has signed memoranda to explore payments in USD1, a stablecoin issued ​by the Trump-linked World Liberty Financial. At ​the signing in January, Finance Minister ⁠Muhammad Aurangzeb said innovation should be “aligned with regulation, stability, and national interest.”

It has also signed another memorandum to redevelop Manhattan’s Roosevelt Hotel, a deal negotiated by envoy Steve Witkoff, and placed a limited drone order with Powerus, whose investors include Trump’s sons Donald Jr. and ​Eric.

“There are no conflicts of interest,” White House spokeswoman Anna Kelly told Reuters in September, when asked about Powerus.

Husain Haqqani, ​a former Pakistani ambassador ⁠to Washington and senior fellow at the Abu Dhabi-based Anwar Gargash Diplomatic Academy, said Pakistan’s leaders had “built a transactional relationship” with Trump’s team. Some arrangements involving the president’s friends and relatives “might not last,” he said. “Pakistan seems totally unprepared for that scrutiny.”

Daniel Markey, a senior fellow at the Washington-based Stimson Center, warned that investigations could taint the wider relationship if dealings appeared ⁠driven by ​private interests.

From Pakistan’s perspective, there may still be cards left to play, analysts said.

The Atlantic Council’s Michael ​Kugelman said Pakistan’s counterterrorism cooperation and Iran diplomacy enjoyed bipartisan support, and Democrats would be more likely to blame problematic deals on Trump than on Pakistan.

But “the risk for Pakistan is that it put so many of ​its diplomatic eggs in the White House basket that it won’t have anything left for the Democrats,” Kugelman said.

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