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A crisis is brewing in the Middle East and Crown Prince Mohammed bin Salman is at its centre

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[vc_row][vc_column][vc_column_text]By Seema Guha

Is Saudi Arabia about to implode? Can ambitious Crown Prince Mohammed bin Salman’s audacious plans that have shaken up Saudi Arabia’s staid ruling family succeed? In the last few weeks, the House of Saud, which had for decades ruled by consensus, with one old monarch succeeded by an ageing brother, now suddenly open up to a new line when the baton is being handed over from father to son? The jury is still out on that.

But in recent weeks King Salman bin Abdulaziz al Saud Salman’s favourite son has proceeded with breath-neck speed to bring in sweeping changes in the oil rich kingdom. In the name of an anti-corruption drive, he has arrested eleven princes as well as scores of senior officials.

Prince Miteb, son of the late King Abdullah, and commander of the powerful National Guards, Saudi Arabia’s most prominent and outspoken businessman Prince Alwaled bin Talal, are all in the confines of a luxury hotel on charges of corruption. The Crown Prince is   taking down all possible rivals within the family.

Around the same time as these arrests, a helicopter crash killed Prince Mansour bin Muqrin, deputy governor of Asir province and a number of his officials. Clan and tribal loyalities run deep in the country and it is not yet clear if these large scale arrests and removal of four sitting ministers on charges of corruption would be taken lightly.

The 32-year old crown Prince, who was not in the limelight till his father became King, now yields enormous power. He is the defence minister and is in charge of major economic reforms, aimed at changing the kingdom’s reliance on oil and diversifying the economy. An ambitious plan Vision 2030 was unveiled by the Crown Prince recently. He is said to have worked out the vision with the help of top Western managers hired from across the world with huge salaries. He is also keen to list the state owned oil giant Aramco in the stock exchange.

By removing the commander of the National Guards, and placing one of his loyalists as chief, the Prince has indirectly also bought the elite force to report to him. He is the chairman too of the newly formed anti-corruption committee, which has wide reaching powers to trace funds and assets and prevent their transfers or liquidation on behalf of individuals and entities. All in all, the Crown Prince is calling the shots and virtually in charge of the kingdom. But by the arrests of powerful members of the royal family, he would have also made bitter enemies, who would be biding their time to strike back.

Anti-corruption drives are always popular among ordinary citizens. Saudi Arabia is no exception. The Crown Prince has publicly said several times that no one would be spared, not even those with royal connections. He has been as good as his word and this has been welcomed by the general public. However the question remains, is the anti corruption drive aimed at cleaning up the system or to target those who may one day challenge the Prince. Saudi Arabia has never been a transparent system and most members of the extended royal family have been conducting business in this way for generations. Saudi Arabia is not prepared for the change to transparency and accountability.

Prince Salman hopes to convert Saudi Arabia to a moderate Islamic kingdom and is taking on the powerful clergy wedded to the puritanical and austere Wahhabi school. The strict norms against music and entertainment, the segregation of men and women and other orthodox practices would be out of the window if the Prince had his way. He is popular among the young Saudis for his modern views. Religious police that enforced strict dressing for women and often abused power are no longer roaming the streets of Riyadh looking to bring offenders to book. Women are in the process of being allowed to drive. Entertainment, which also brings in the big bucks, is being encouraged by him.

The clergy plays a pivotal role in Saudi Arabia. The royal house of Saud, as custodians of the mosques at Mecca and Medina are venerated across the Sunni world and the state promotes the Wahhabi school of austere Islam. The King and clergy have so long ruled by consensus. The Crown Prince’s desire to turn the kingdom into a moderate Islamic state may in time turn them against the ruling family. But so far there are no signs of that happening as the Crown Prince has not yet ridden rough shod over clergy.

But the hot blooded Prince is not merely cracking down on perceived enemies within the kingdom. Like the rest of Sunni powers, Saudi Arabia has always regarded Shia Iran with suspicion. Since state structures in Iraq collapsed following the American invasion and the sectarian war led to blood baths across the country, Iran’s clout there has increased manifold. Saudi Arabia and the smaller Gulf countries, worried about Iran’s growing influence in the region, are out to eradicate Iran’s footprints in the region. A proxy war is on between Saudi Arabia led Sunnis and Shia Iran in Syria, Yemen, Iraq and Lebanon. There Hizbollah is backed by Iran and Saudi Arabia has already triggered a crisis by forcing prime minister Hariri to resign. Hariri announced his resignation from Saudi Arabia last week.

The Saudis have cultivated excellent ties with US President Donald Trump. Unlike Obama, Trump regards Iran as a principle enemy of the US. He is already in the process of pulling out of the landmark nuclear agreement signed between Iran, the US, France, China, UK, Russia and Germany. The new line up in West Asia is Saudi Arabia, US and Israel ranged against Iran and Russia. Bashar-al Asad of Syria is also with them. The resignation of Hariri is escalating the crisis in the region. Saudis and Israel (which is against Hezbollah in Lebanon) are bent on pushing Iran to a corner. A recent missile attack by Houthi rebels of Yemen at Riyadh International airport, is being blamed on Iran. War drums are beating in West Asia. Unless the Crown Prince is restrained, the oil rich states may soon be in turmoil. War in the region will affect oil supplies and could hit the world economy. Countries like India, that gets most of its supplies from Saudi Arabia, will be hard hit. However, though Donald Trump himself is as aggressive as the Crown Prince, saner elements within the US establishment like Secretary of State Tillerson are urging restraint.

Will the Crown Prince listen? He has had little success in the war in Yemen, or in the blockade of Qatar (for allegedly playing footsie with terror groups) spearheaded by Saudi Arabia. He would be looking to Lebanon to take on Hezbollah. Neither Iran nor the Hezbollah are pushovers, and if Saudi Arabia continues to its current disastrous ways, the region may well implode.[/vc_column_text][/vc_column][/vc_row]

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Trump says Iran getting more serious in talks, no decision yet on major strikes

Donald Trump says Iran is becoming more serious in negotiations with the US but insists no decision has been taken on launching major military strikes against Tehran.

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Donald Trump

US President Donald Trump has said he has not yet decided whether to authorise major military strikes against Iran, stating that Tehran has become “more serious” in its negotiations with Washington even as tensions between the two countries remain high.

Speaking to reporters in the Oval Office on Friday, Trump said discussions with Iran were continuing and suggested diplomatic efforts were showing signs of progress.

“We’re talking to them right now. I think they’re getting more and more serious as the days go by,” Trump said, adding that no final decision had been taken on launching military action.

Trump says diplomacy remains an option

Trump said the United States remained prepared for military action if required but indicated that ongoing talks could still lead to an agreement.

“We’re locked and loaded and ready to go. But we’re talking to them, so I think while we’re talking, we’ll see what comes of it. I believe they’re very serious. They should be,” he said.

The US President also warned that Iran would face a “much higher level” of strikes if negotiations failed, while reiterating that preventing Tehran from developing a nuclear weapon remained his key red line.

The United States has said its military operations are aimed at preventing Iran from closing the strategically important Strait of Hormuz. Iran, meanwhile, has carried out retaliatory strikes on US bases, with four American service members reported killed.

Reports claim Trump discussed large-scale military operation

Trump’s remarks came after media reports suggested he met senior advisers to discuss the possibility of a large-scale military operation against Iran. Another report said he was considering a “massive attack”, although Trump did not confirm those reports during his interaction with journalists.

He also acknowledged that the prolonged conflict, which he had earlier expected to last only a few weeks, was approaching its fifth month and had become a political challenge ahead of the US midterm elections scheduled for November.

Trump issues warning over support for Iran

Trump also addressed reports claiming that Russia and China were providing intelligence or military support to Iran. He said both Chinese President Xi Jinping and Russian President Vladimir Putin had assured him they would not arm Tehran.

“I think they wouldn’t want to have me disappointed,” Trump said.

In a separate post on his Truth Social platform, Trump warned Moscow and Beijing against supplying weapons to Iran, saying such a move would not be in their interests.

He further stated that Xi had assured him during their meeting in Beijing in May that China would not provide weapons to Iran, while Putin had conveyed a similar position despite the ongoing war in Ukraine.

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For second time, US strikes ship with Indian crew near Strait of Hormuz

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Strait of Hormuz

The United States Central Command (CENTCOM) has said that an oil tanker carrying Indian crew was drifting with its engine switched off near the Strait of Hormuz before it was struck by US forces.

A CENTCOM spokesperson said the vessel had stopped due to engine failure and was drifting after its crew repeatedly sought additional time to carry out repairs. US officials said the tanker was struck only after it failed to comply with directives issued by US forces enforcing a blockade on vessels allegedly transporting Iranian oil. The military said the strike was aimed at disabling the ship by targeting its engine room rather than sinking it.

The incident involved a tanker carrying Indian seafarers near the Gulf of Oman, close to the Strait of Hormuz, one of the world’s busiest maritime trade routes. The strike triggered a fire onboard, prompting rescue efforts by Omani authorities and maritime agencies. Indian authorities closely monitored the situation and coordinated with local officials regarding the welfare of the crew members.

The incident has drawn concern in India, with the government emphasising the safety of Indian nationals working aboard commercial vessels in the conflict-hit region. The Ministry of External Affairs has remained in touch with the authorities concerned as tensions between the United States and Iran continue to pose risks to international shipping.

In June, three Indian sailors were killed in a US strike on another oil tanker. The Strait of Hormuz handles a significant share of the word’s oil trade, and the latest incident has renewed concerns over the security of merchant vessels operating in the region. Maritime experts have warned that escalating hostilities could further disrupt commercial shipping and endanger civilian crews navigating one of the world’s most strategically important waterways.

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Trump announces phased tariff of up to 200% on generic drug imports, India may face impact

US President Donald Trump has announced a phased tariff plan on imported generic medicines, raising duties to 200% after three years, a move that could affect India’s pharmaceutical exports.

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Donald Trump

The United States has announced a phased tariff plan for imported generic medicines that could have implications for pharmaceutical exporters, including India. US President Donald Trump said the policy is intended to encourage companies to shift generic drug manufacturing to the United States by imposing steep tariffs after a two-year transition period.

The announcement is particularly important for India, one of the world’s largest suppliers of affordable generic medicines and a major exporter to the US market.

Trump outlines phased tariff plan

In a post on his Truth Social platform, President Trump said the new policy will take effect from August 1, 2026. Under the plan, imported generic medicines will continue to attract zero tariffs for the first two years.

Beginning in the third year, the tariff will increase to 100%, before rising further to 200% thereafter.

Trump said the measure is designed to encourage pharmaceutical companies to establish manufacturing facilities in the United States instead of relying on imports.

He added that companies choosing not to invest in US-based production during the transition period would face the higher tariff rates. According to Trump, the existing policy governing patented, branded and innovative medicines will remain unchanged.

Why India could be affected

India is widely regarded as the “pharmacy of the world” because of its large-scale production and export of generic medicines.

Indian generic drugs account for nearly 40% of the US generic medicine market by volume. According to a Global Trade Research Initiative (GTRI) report, India exported pharmaceutical products worth USD 9.7 billion to the United States during the 2024-25 financial year, representing around 38% of the country’s total pharmaceutical exports of USD 25.8 billion.

However, the immediate impact of the newly announced tariff policy on Indian pharmaceutical companies remains uncertain.

Existing trade agreement and industry concerns

India and the United States struck a trade pact in February that states India would receive negotiated outcomes regarding generic pharmaceuticals and pharmaceutical ingredients.

Despite that provision, previous tariff threats by Trump had already raised concerns within the pharmaceutical industry over the future of affordable medicine exports from India.

Indian pharmaceutical companies supply a wide range of generic medicines used to treat conditions including hypertension, diabetes, depression, cancer, infectious diseases and mental health disorders.

According to a Financial Post report cited in the source material, around 65% of birth control pill prescriptions in the United States during 2024 were manufactured by two India-based companies — Glenmark Pharmaceuticals Ltd. and Lupin Ltd.

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