The specter of another protracted war is hanging over the Middle East.

Hamas is once again firing rockets at Israel from the Gaza Strip, while the Israeli air force is bombing the Palestinian stronghold. U.S. President Joe Biden has stepped up efforts to calm tensions after an Israeli air strike on Saturday destroyed a 12-storey building in Gaza City containing the offices of the Associated Press and other media outlets, as well as flats.

Biden told Israeli Prime Minister Benjamin Netanyahu of his “grave concern,” while reaffirming Israel’s right to defend itself against “Hamas and other terrorist groups in Gaza,” the White House said. He also spoke with Palestinian Authority President Mahmoud Abbas for the first time since taking office in January, underscoring “his strong commitment to a negotiated two-state solution” to resolve the Israeli-Palestinian conflict.

The fighting has led to street battles between Arabs and Jews in Israeli towns. The interracial violence is partly attributable to Palestinians sympathizing with their brethren in Gaza. But it’s also the result of government policies that disfavor Arab citizens. They account for about a fifth of Israel’s population, yet face discrimination in housing and employment.

The conflict is testing Israel’s newly-struck peace accords with the UAE and three other Arab countries. It may complicate efforts to translate the agreements into genuine partnerships with billions-of-dollars-worth of trade and business deals.

Chart of the Week

Iran is preparing to ramp up oil exports as talks in Vienna to lift U.S. sanctions show signs of progress. National Iranian Oil Co. has been priming energy fields — and customer relationships — so it’s ready, according to officials at the state firm. But even if a deal is struck, the flow of additional crude into the market may be gradual.

The Slant

Saudi Arabia is reaching out to the Iranian government that just three years ago it said “makes Hitler look good.” Iran’s foreign minister said the talks could spur “greater cooperation” between the two rivals and help end Yemen’s civil war. Another explanation is that America’s Arab allies are preparing for a Middle East where their most powerful friend is no longer around, writes Eli Lake for Bloomberg Opinion. If the Biden administration follows through with its promise to begin disengaging from the region, the Arab states will need as many friends and as few enemies as possible.

Need to Know

Qatar froze the assets of six local businessmen as part of a crackdown on corruption that began this month with the arrest of Finance Minister Ali Sharif Al-Emadi. The minister was accused of abusing his power and misusing public funds.

The shares of Israel’s SimilarWeb slipped after their trading debut in New York, but CEO Or Offer says he’s planning to step up acquisitions. The company, which provides a platform for analyzing app and website data, has a valuation of $1.6 billion and its listing was part of a trend of Israeli-founded firms going public in the U.S.

Egypt plans to widen and deepen parts of the Suez Canal after a giant container ship ran aground in March and blocked the vital waterway for six days. The canal operator is seeking $600 million in compensation from the owners of the Ever Given vessel.

Turkish company Karpowership has switched off two floating power plants that provide about a fifth of Lebanon’s electricity, amid a dispute over corruption allegations and payments. The Istanbul-based firm said it hadn’t been paid by the cash-strapped government in Beirut for 18 months.

Coming Up

• Emirates Airline is expected to post annual results on May 20. The airline reported its first loss in more than 30 years for the six months through September after the coronavirus pandemic reduced demand for air travel.
• Saudi CPI for April on May 20. Last month’s inflation rate was 4.9%.
• Arabian Travel Market, an international tourism event, started on May 16

Last Word

The Democratic Republic of Congo lost out on nearly $2 billion in revenue by underpricing mining assets sold to Israeli billionaire Dan Gertler, a coalition of Congolese and international organizations say.

The activists have urged the Congolese government to review the deals with companies owned by Gertler, who’s under U.S. sanctions for alleged corruption in the central African country.

Gertler is close friends with former Congolese President Joseph Kabila and denies all wrongdoing. His companies took over cobalt and copper royalties from state-owned miner Gecamines in a series of transactions over more than a decade.

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