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OIC rejects Donald Trump’s Jerusalem move at extraordinary Summit in Ankara

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[vc_row][vc_column][vc_column_text]Turkish President calls for recognition of Jerusalem as capital of Palestine state

In a swift move the pan-Islamic body Organisation of Islamic Cooperation (OIC) has rejected US decision to recognise Jerusalem as Israeli capital and its move to shift its embassy from Tel Aviv to the city.

According to Hurriyet Daily News, while addressing the Muslim world leaders at the extraordinary OIC summit in Istanbul on Wednesday Turkish President Recep Tayyip Erdoğan called on the international community to recognize Jerusalem as the capital of Palestinian state.

He said “I invite countries that claim international law and equity to recognize Jerusalem as the capital of the Palestinian state under occupation. It is a must for countries that have not yet recognized the Palestinian state to take this important step, to maintain a balance that will ensure good sense and justice in the region.”

Meanwhile  Yousef al-Othaimeen, the Secretary General of OIC  urged Muslim leaders to work together to present a united response to the move.

He further said, “The OIC rejects and condemns the American decision,” he said. “This is a violation of international law … and this is a provocation of the feelings of Muslims within the world … it will create a situation of instability in the region and in the world.”

Palestinian President Mehmoud Abbas, while speaking before the OIC Secretary General, said that US has “disqualified” itself from future  peace talks after proving its “bias in favour of Israel”. He said that Trump’s decision has violated the international law.

The 57 member Organisation of Islamic Conference (OIC), founded in 1969, is considered to be a “the collective voice of the Muslim world”. Turkish President Recep Tayyip Erdoğan presided the OIC Summit and addressed the opening and closing ceremonies of the summit.

Abbas further said,”We shall not accept any role for the United States in the peace process, they have proven their full bias in favour of Israel. Jerusalem is and always will be the capital of Palestine.” This was his strongest comment on the issue so far.

Addressing the Muslim leaders, Turkish President Recep Tayyip Erdogan accused Israel of being a “state of terror” and said that US’ recognition of Jerusalem as the capital of Israel has been rebuked by the international community.  

“It is null and void … except Israel, no country in the world has supported [this decision].Anyone who walks a few minutes in the streets of Jerusalem will recognise this city is under occupation,” Erdogan said.

Palestinians consider East Jerusalem as the capital of their future state, while Israel believes that Jerusalem, which is now under their occupation, cannot be divided.

On December 6, US President Donald Trump  had announced that the US formally recognises Jerusalem as Israel’s capital had ordered to begin process of moving its embassy from Tel Aviv to the city, the proposed capital of independent Palestine.

The extraordinary OIC summit was called for by Turkish President Recep Tayyip Erdogan after the US move.

Among 22 heads of the state and government who participated  in the extraordinary OIC Summit in Istanbul on Wednesday included, Palestinian President Mahmoud Abbas, Jordanian King Abdullah II, Azerbaijan President Ilham Aliyev, Bangladeshi President Abdoul Hamid and Iranian President Hassan Rouhani.

Some 25 foreign ministers including Egypt, the United Arab Emirates, Morocco and Kazakhstan participated in the summit while Saudi Arabia was represented by Islamic Affairs Minister Salih bin Abdulaziz al-Shaikh.

While briefing about the OIC Summit on Tuesday the Turkish foreign minister Mevlüt Çavuşoğlu told that some Arab countries have failed to sufficiently repudiate Washington’s recognition of Jerusalem as Israel’s undivided capital because U.S. President Donald Trump “scares them.”  He further said, “It seems that some Arab countries refrain from challenging Trump.”

Al Jazeera’s Mohammed Adow, reporting from Istanbul, said Erdogan was seeking to “unite the Muslim world” and “come up with a concerted response” to the US’ move.

“He faces a daunting task. In the hall that he was addressing, there were countries who are not willing to go beyond rhetoric opposition at the expense of sacrificing their relationship with the United States,” said Adow.

Trump’s announcement of recognising Jerusalem as Israeli capital instruction to start process of moving US capital to the city has provoked a wave of huge protests in the Middle East, Asia, Africa, Europe and Australia.[/vc_column_text][/vc_column][/vc_row]

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India considers tax relief to attract foreign investors amid Iran war impact

India is evaluating tax incentives, including a possible capital gains tax exemption on government securities for foreign investors, to support capital inflows amid economic pressures linked to the Iran war.

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India is considering a set of measures aimed at attracting more foreign investment as the ongoing Iran war continues to create pressure on the country’s economy, according to reports citing government sources. One of the key proposals under discussion is the removal of capital gains tax on investments made by foreign portfolio investors (FPIs) in government securities.

The move comes at a time when geopolitical tensions in West Asia have pushed up global oil prices, weakened investor sentiment and increased pressure on the Indian rupee. India, which imports a significant share of its crude oil requirements, has been among the countries closely monitoring the economic fallout from the conflict.

Government exploring ways to boost capital inflows

Officials are reportedly evaluating tax-related incentives to make Indian debt markets more attractive to overseas investors. The proposed exemption on capital gains from government securities is aimed at encouraging foreign portfolio investment and supporting capital inflows during a period of heightened global uncertainty.

The government is seeking to counter the impact of foreign capital outflows that have intensified amid concerns over the Iran conflict and its implications for energy markets and global economic growth.

Rupee and markets under pressure

Recent weeks have seen increased volatility in financial markets, with foreign investors pulling money out of Indian equities. Analysts have linked part of the pressure on the rupee to rising oil prices and continued overseas investor withdrawals.

Market participants believe that measures aimed at attracting foreign investment into government securities could help improve investor confidence and provide support to the domestic currency.

Broader economic concerns

The Iran war has added to concerns about inflation, economic growth and India’s external sector. Higher energy prices can increase import costs and put pressure on inflation, while sustained foreign capital outflows may affect financial market stability.

While no final decision has been announced, discussions on easing tax rules for foreign investors reflect the government’s efforts to strengthen capital inflows and cushion the economy from external shocks.

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US proposes new tariffs on India over forced labour concerns amid trade negotiations

The United States has proposed additional tariffs on imports from India and 59 other economies following a Section 301 investigation into forced labour-related trade concerns.

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Donald Trump statement

The United States has proposed imposing additional tariffs on imports from India and 59 other economies after concluding that these countries have not taken sufficient steps to prevent the importation of goods allegedly linked to forced labour. The proposal was announced by the Office of the US Trade Representative (USTR) as part of an investigation conducted under Section 301 of the US Trade Act.

According to the USTR’s findings, India could face an additional tariff of 12.5% on goods exported to the United States. The proposed measure is part of a broader plan targeting 60 economies, with tariff rates ranging between 10% and 12.5% depending on the findings related to each country.

India among countries facing higher tariff proposal

The USTR said India had not effectively enforced restrictions on imports made using forced labour, describing the issue as a burden on US commerce. The agency argued that inadequate enforcement by major trading partners creates unfair competition for American workers and businesses.

While countries including Canada, Mexico, the European Union and the United Kingdom are proposed to face a 10% tariff, India is among a larger group of economies that could be subjected to a 12.5% duty under the recommendation.

Proposal comes during India-US trade discussions

The tariff proposal has emerged while Indian and US officials are engaged in trade negotiations aimed at strengthening economic ties between the two countries. A US delegation led by Assistant USTR Brendan Lynch is currently holding discussions with Indian officials in New Delhi.

India’s Commerce Ministry has indicated that discussions with the United States on the matter are continuing and noted that the proposed tariffs have not yet been finalised. The USTR has invited public comments on the proposal until July 6, with a public hearing scheduled for July 7 before any final decision is taken.

Certain products may remain exempt

The proposed tariffs include exemptions for several categories of goods, including some energy products, pharmaceuticals, rare earth materials and selected agricultural commodities. Additional details regarding sector-specific measures, including proposed textile-related actions, are expected to be released separately.

The latest move follows a Section 301 investigation launched earlier this year into forced labour concerns across global supply chains. Any final decision on imposing the tariffs will be made after the consultation process is completed.

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Trump reportedly rebukes Netanyahu over Lebanon strikes amid ceasefire concerns

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US President Donald Trump reportedly delivered a sharp rebuke to Israeli Prime Minister Benjamin Netanyahu during a phone call over Israel’s military actions in Lebanon, as concerns grow that renewed hostilities could jeopardise fragile diplomatic efforts in the region.

According to multiple reports, Trump expressed frustration over Israeli strikes linked to ongoing tensions with Hezbollah in Lebanon. The reported exchange came at a sensitive time, with Washington attempting to prevent further escalation while also pursuing broader diplomatic discussions involving Iran.

Reports point to unusually tense exchange

Sources cited in international reports said Trump used unusually strong language during the conversation, warning that continued military actions risked damaging efforts to stabilise the situation. One report claimed Trump told Netanyahu that his actions were hurting Israel’s international standing and complicating diplomatic initiatives.

The reported disagreement followed Israeli operations against Hezbollah-linked targets in Lebanon. While Israeli officials argued that the actions were a response to security threats and ceasefire violations, the US administration has been pushing for restraint to avoid a wider regional conflict.

Lebanon fighting threatens broader diplomatic efforts

The latest tensions come amid efforts to maintain a ceasefire framework between Israel and Hezbollah. US officials have been involved in discussions aimed at reducing hostilities and preventing attacks on major Lebanese population centres, including Beirut.

Reports indicate that Trump personally intervened to discourage further escalation and support negotiations intended to preserve regional stability. Hezbollah has reportedly signalled a willingness to consider a broader ceasefire arrangement if reciprocal commitments are made.

Differing public messages after the call

Despite reports of a heated conversation, Trump later suggested publicly that discussions had been constructive and that progress had been made toward reducing tensions. Netanyahu, however, maintained that Israel would continue to respond to security threats and would not alter its overall approach toward Hezbollah if attacks persisted.

The developments highlight growing challenges facing diplomatic efforts in the Middle East, where the conflicts involving Israel, Lebanon and Iran remain closely interconnected. Analysts say any major escalation in Lebanon could further complicate ongoing negotiations and increase instability across the region.

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